Comcast's two-tier pricing angers broadband-only customers

Mercury news/Yahoo ^ | 6/11/03 | Michael Bazeley,

[Pro-Bush]

Comcast's two-tier pricing angers broadband-only customers

Bay Area Web surfers who use Comcast for their Internet connection are finding they have to pay a premium if they do not also take the company's cable-television service.

Internet-only customers have seen their monthly bills jump from $46 a month to $60 recently. By contrast, cable modem (news - web sites) users who also buy cable-television service pay just $43 a month for Internet access.

Comcast says it is simply rewarding customers who bundle services. But Internet-only customers say they are being punished for not wanting or needing cable television.

"I feel taken advantage of," said Jill Singleton of Fremont, whose family does not own a TV. "Being able to have broadband is important to us, and it's not like we really have another choice."

Comcast announced the rate increase in December, shortly after the Philadelphia company acquired AT&T Broadband. Company spokesman Andrew Johnson said the company gave its customers ample notice about the rate change.

The new prices began to appear in customers' bills April 1; the specific date varies with their billing cycle.

"We're rewarding people who take more services from us," Johnson said. "Just like other companies. It's a tried-and-true concept."

Johnson would not say how many Bay Area customers take only cable-modem service, but the number is "very, very, very small," he said.

Natalie Munn of Fremont said she never heard about the increase and did not notice any change until Comcast debited her checking account in May.

Happy with satellite

Munn said she switched from cable TV to satellite years ago because of problems with her former cable provider, Viacom. She is happy with the satellite service, she said, and has no plans to switch back to cable.

"It's blatantly unfair," Munn said. "They're using their monopoly position to force people to subscribe to cable."

Johnson said that even with the price increase, broadband-only customers are still getting a good deal. He said Comcast's pricing is competitive with the only broadband alternative, digital subscriber line, or DSL.

Comcast's $60 cable-modem service, with download speeds of up to 1.5 megabytes per second, is comparable with an SBC Yahoo DSL package offered at $59.95, Johnson said. Comcast customers can save $3 a month if they provide their own cable modem.

"We still believe we have a superior product in value," Johnson said.

The two-tier pricing structure, which Comcast uses nationwide, has attracted the ire of consumer groups.

Consumers Union and the Consumer Federation of America have asked the Federal Trade Commission to investigate what they called "anti-competitive" behavior. They are taking aim not at the higher-priced cable-modem service, but at the low-priced TV-Internet bundle.

Bundled pricing

The groups argue that Comcast's bundled pricing is so low -- less than $60 for both Internet access and basic cable TV -- that it amounts to giving away the cable-TV service for free. The goal, they said, is to "shrink the market" for DirecTV satellite television, Comcast's only real competitor in most markets.

"What they're doing, in my view, constitutes predatory pricing," said Chris Murray, legislative counsel for Consumers Union.

Murray said the bundle could be considered anti-consumer.

"If you're looking for a bundle, it's a great deal," he said. "But what about the person who only wants one service? For some people, this is the difference between being able to get broadband and not being able to get broadband."

[DannyTN]

It's directly from Bell South. It's FastAccess DSL and it is $75.55 per month Plus $4.40 UUNET servce fee.

But they are the only firm that offers DSL in the small town just outside Nashville. The only alternative is Comcast who wanted $65 per computer.

They have monopoly status.

[DannyTN]

It works.

I don't want to be in a situation where I'm violating the contract, even if what they are asking is grossly unfair. I'd rather pay the extra $20 a month and do business with Bell South where at least I'm legal. And then as soon as there is soom competition, I'll switch.

[kmiller1k]

We have had ATT cable and pay $10 each for the extra tv's. Now that it is comcast I wonder if they will continue to charge for the extra boxes. Nominal fee? I think the $10 is too much but I need the box for TV in my bedroom because it puts me to sleep every night, just like a sleeping pill!

[DannyTN]

It is for my business. So Bell South may have a lower rate for residential. But I think it's $65, it certainly isn't $15.

[Paul C. Jesup]

Check out www.fastaccess.com The monthly rate should be for HOME $49.95 without Complete Choice and Area Plus.

[Paul C. Jesup]

Starting in July, $15 extra for an IP Address for home users.

[Aric2000]

They tried to do that with my Brother in law, so he told them one computer, hid the others, when it was installed, he got out his linksys, and poof, he has 6 computers on his cable line, but Comcast only sees one.

Works pretty darn good, and you're only using one IP, so they can't complain too much. I am going to do the same thing when they finally get it here, the bastages!!

[TomServo]

Hell - I told Comcast about my LinkSys. The Techs have come over twice in the past couple of years (bad lines) and haven't said a word about it. Comcast threatened a buddy of mine about running his LinkSys and he told him to "kiss-his-ass", he'd cut his service and go DSL. He hasn't heard a peep about it since.

[elephantlips]

It does work, Comcast is aware of it and I pay for one internet cable to the house and that's all we use.

[Revolting cat!]

What monopoly? I can get Broadband data service from 5 different providers in my market

Lucky you! You can get cable broadband and cable TV from 5 different providers? They must be beating a path to your door competing against each other for your business. What is the monthly fee down to? $5.99? And that's in Sacramento where all the politicians are honest too! Regular paradise! What was I saying, foolish me!

[brianl703]

If you just want the analog tier channels on those TVs (typically channels 2-70 or so) and they are cable ready, you can ditch the box and hook the cable straight up to the TV.

The $10 you are paying is almost certainly for a digital converter box[not the outlet!], and you don't need it if your TV was made in this decade (or the last one). Even if it's a 70s or 80s junker with separate UHF and VHF knobs, you can get a plain old analog converter box like the Gemini AD-6000 off of Ebay for about $10-$15. (Your cable company will probably rent you one for about $2 a month).

[brianl703]

Please post the relevant parts of the Comcast TOS that prohibit using a router.

The last time I looked at the TOS, the only thing it had to say was that they don't support them. And as one who has done tech support, that's an entirely reasonable policy. It's difficult enough to troubleshoot a problem without having to deal with customer-added complexity.

[oreolady]

I am also one of the former ATT Broadband-converting to Comcrap!!!!!
Besides disliking their way of business, THEY STOLE $45 from me!!!!!
I had a paid up account when they bought ATT, plus a $95 credit for getting subscribers for them, to be used after my paid-up year expired, 2 months AFTER they took ownership.
I received a regular monthly bill from them 2 months before I was to expire my contract. When I called them, they claimed the FCC rules say they can take a rate hike from paid up people, even tho I paid for the year at the old rate.
After arguing with them, they "gave" me a $45 credit back!!!!!
I want to change, but need the speed of cable, I have Dish TV and refuse to give Comcast any dollars. Want to change providers, but have no competition, in southwest Washington.
Their rate (internet cable) went from $46 to $53!!!, an obscene jump.
I looked at the directtv internet, but want to keep my Dishnetwork, for programming. So far can't find any Dish ads for internet.
Any ideas, freepers? would appreciate suggestions.

[reg45]

Comcast is finally getting around to upgrading our area to cable internet capable wiring. We are too far from the CO for DSL (the limit is about 2.5 miles). So we may have HSI (high speed internet) in about two months. I'll probably put in a router so that we can share the connection.

[reg45]

Never really cared about the voice line anyway.

You could always use VoIP.

VoIP Info

[Ready4Freddy]

Yeah, may look into that when my unlimited cellphone minutes run out. ;>)

[Ready4Freddy]

"I can get Broadband data service from 5 different providers in my market (Sacramento Metro): Comcast, SBC, SureWest, OmSoft, & Earthlink."

Bet there's not much pricing differences. Aren't those '5 different providers' actually 2 owners of the 'last mile', and 3 CLECs who piggy back on those lines?

The way SBC prices to CLECs, thee's no way the CLECs can compete on price. Plus, SBC doesn't allow CLECs access to RTs, so they're limited to folks close to the CO.

[Pro-Bush]

You got it. SureWest has their own facilities though. OmSoft and Earthlink utilizes SBC's "last mile" temination from the neighborhood DSALM. Prices are competitive, especially in the bundled offerings, new sign up incenticves (i.e. $19.95 for the first three months, etc.), and free installation and equipment.

[Space Wrangler]

Yes, you are correct. My satellite bill is still cheaper by $19 a month with three satellite boxes versus one digital cable box. It's more for less no matter how you cut it.

[Space Wrangler]

If your home is wired for cable, you can use those existing connections for your satellite service. Like you, I didn't know that until the guy actually came to install the dish. (when the cable company raised our bill for the thrid time in 8 mos. it was the last straw, and I was dropping them wires or not!) Also, like you, that reason had kept me from going satellite as well. The only wire he had to run was from the satellite dish down to the cable junction box. My satellite boxes plug into the wall jacks where my cable once came in. I get probably 30% more channels with satellite that I got with cable, about 20 more music channel choices, 70 Pay-per-view channels. The clencher, however, is the 10 channels of childrens programming vs cable's three. If you're not going satellite because you think you'll have wires running everywhere, think again! I can't stress enough how much better satellite is than cable.