& cplSiteName &

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 Technologies (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        ADD A COMMENT
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."

From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (6) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
NFV, SDN, Big Data – It's All About Automation
Craig Matsumoto, Editor-in-Chief, Light Reading, 7/21/2017
What's a Little Throttling Between Friends?
Mari Silbey, Senior Editor, Cable/Video, 7/24/2017
AT&T's Tech President Preps Workforce for the Future
Kelsey Kusterer Ziser, Editor, 7/26/2017
The Hidden (Human) Cost of Automation
Steve Saunders, CEO and founder, Light Reading, 7/26/2017
BBC Head: We Must Reinvent Broadcasting for a New Generation
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.