Light Reading
MSO hits the national stage with $9.95-per-month Internet service targeted to low-income families with schoolchildren

Comcast Goes Big With 'Internet Essentials'

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
9/20/2011
50%
50%

Following initial launches in markets such as Chicago, Philadelphia and Hartford, Comcast Corp. (Nasdaq: CMCSA, CMCSK) went national Tuesday in Washington, D.C., with its Internet Essentials program and its promise to help low-income families afford access to cable modem services.

"We are treating this as the national launch of the program," Comcast Executive Vice President David Cohen tells Light Reading Cable. He was joined at the launch, held at the Ballou High School, by Federal Communications Commission (FCC) Chairman Julius Genachowski and D.C. Public Schools Chancellor Kaya Henderson.

Internet Essentials, a voluntary commitment linked to Comcast's acquisition of NBCUniversal LLC , targets impoverished households with school-age children who are eligible to receive free lunches under the federally assisted National School Lunch Program. Qualified households (PDF) will receive discounted Internet service (1.5Mbit/s down by 364kbit/s up) from Comcast at $9.95 per month, a $149.99 voucher to be used toward the purchase of a PC and access to a free digital literacy training regimen. Acer Inc. and Dell Inc. (Nasdaq: DELL) are supplying computer equipment for the program, with Comcast subsidizing part of the cost, Cohen says.

Comcast is also waiving activation and equipment fees and promising not to increase the monthly price for as long as families qualify for the offer. As a standalone service, Comcast's Economy tier, which provides the same speeds as Internet Essentials, runs about $47 per month with the equipment lease included.

In addition to being eligible under the NSLP free school lunch program, families must also live in an area where Comcast offers Internet service, must not have subscribed to that service within the last 90 days and must not have an overdue Comcast bill or unreturned MSO equipment.

Why this matters
The national rollout fulfills one of several conditions tied to the NBCU deal while also fitting within the aims of the FCC National Broadband Plan.

Comcast has rolled out Internet Essentials in all markets, but says it's too early to say how many kids are signed up for it. Cohen notes that the eligibility process typically takes two to three weeks and many schools have not even been open that long.

Internet Essentials is also a 2.0 version of sorts of a similar program the cable industry launched in 2009. The effort, called Adoption Plus (A+), was to provide free cable modem installations in addition to a 50 percent discount on cable modem service. (See Cable Offers 50% Broadband Discount to School Lunch Bunch.)

"We didn't like the price target of that program," which was about $15, Cohen said, adding that it "was the best the industry could do at the time. We thought the price needed to be $10." Adoption Plus also targeted only at middle school students, so Internet Essentials also takes that commitment a step further by applying to a larger group of eligible families and students.

For more
Read more about Internet Essentials and the FCC National Broadband Plan.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
msilbey
50%
50%
msilbey,
User Rank: Blogger
12/5/2012 | 4:53:04 PM
re: Comcast Goes Big With 'Internet Essentials'


I remember our household Prodigy account was $10/month in the early 1990s. At the time, the cost was significant, not only because that was 20 years ago (when $10 also filled up our gas tanks, by the way), but also because large monthly entertainment subscription fees were not the norm. 


The Comcast program is fantastic. Internet access is too important not to make it available to lower-income households. However, the program also highlights just how much cable has adjusted our expectations around monthly bills in the last two decades. ARPU is at an all-time high, and $10 a month sounds not only reasonable today, but practically laughable compared to standard broadband fees. It's a remarkable attitude shift in a relatively short period of time.

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 4:53:01 PM
re: Comcast Goes Big With 'Internet Essentials'


That takes me back. Prodigy was my first ISP, started subscribing well before they opened it up to the Web and my user name was something like YT6QIFG, which went well with my screaming 14.4 US Robotics modem.


Also, guess it's smart for Comcast to call this Internet Essentials, rather than Broadband Essentials, since the speed of that tier doesn't meet the FCC's definition of broadband. JB

AESerm
50%
50%
AESerm,
User Rank: Light Beer
12/5/2012 | 4:53:00 PM
re: Comcast Goes Big With 'Internet Essentials'


I know this offer is paired with the NBCU deal, as a voluntary condition, so Comcast deserves praise. Here's also a small shout-out to Bernstein Research, which has been tracking the income/broadband equation for about two years. Whie I follow experts who think that expenditures measure poverty more accurately than income (Bernstein relied on income data) Craig Moffett has socialized this issue quite effectively within the industry. Bottom line may come from industry gadfly and Fast Net News editor Dave Burstein, who hit the nail with his head when (last December) he called the Comcast offer "a remarkable move that goes far beyond any previous U.S. program."

Flash Poll
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Fiber Revival at Deutsche Telekom
Iain Morris, 8/25/2014
M2M's In Fashion: Wearables Play the US Open
Sarah Reedy, Senior Editor, 8/25/2014
Like Us on Facebook
Twitter Feed