Comcast Preps for Broadband Price War

2:10 PM MSO is apparently chewing on some big cuts that would put more heat on FiOS and enter play as it tees up new usage-based broadband policies

Jeff Baumgartner, Senior Editor

August 17, 2012

2 Min Read
Comcast Preps for Broadband Price War

2:10 PM -- Broadband Reports has posted what appears to be confidential Comcast Corp. (Nasdaq: CMCSA, CMCSK) material showing a lineup of "potential" broadband tiers and prices that it's considering launching in the second quarter of 2013. According to the report, Comcast is looking to offer these tiers first in its most competitive markets -- those that tangle with Verizon Communications Inc. (NYSE: VZ) FiOS.

One of the changes apparently under review includes a speed tweak alongside a significant price cut on Comcast's high-end Docsis 3.0 residential tier. Its current top-end Xfinity Platinum service maxes out at 305Mbit/s down by 65Mbit/s upstream and sells for almost $300 per month, with availability currently limited to some systems in the Northeastern U.S. Pricing on this proposed "Premiere" tier would run $119 per month (it's not entirely clear if that's a bundled price) for 300Mbit/s down by 75Mbit/s up. That would sharply undercut Verizon's new 300-Meg Quantum FiOS service, whose bundled price is $204.99 per month, and perhaps boost the take rates of Comcast's D3 tiers. (See Comcast Revs Up Pricey 305-Meg Tier and FiOS Speeds & Prices Take a Quantum Leap .)

The cuts would also demonstrate that Comcast does intend to keep the heat on Verizon's wireline business even as it cozies up to new mobile partner, Verizon Wireless . (See Cable OK to Attack FiOS With Verizon Wireless.)

But, perhaps just as importantly, the new pricing would also come into play as the MSO ramps up new policies that would charge extra if customers breached a soft monthly data cap. It's testing one in Nashville, Tenn., that sets a monthly 300-gigabyte threshold and charges $10 for each extra bucket of 50GB. In the coming months, Comcast's expected to try out some other ideas that match different caps and fees with specific speed tiers -- along the lines of the policies that Mediacom Communications Corp. recently launched. (See Mediacom Unleashes Usage-Based Broadband and Comcast Turns On Usage-Based Broadband.)

Another thing that grabbed my attention was the mention of some new wireless CPE options that intend to beef up the home's Wi-Fi network. The image shows "Wireless" and "Wireless Plus" device options supporting speeds of 150Mbit/s to 300Mbit/s. To me, that suggests that Comcast is getting ready to introduce gateways with 802.11ac, a new standard with 1Gbit/s potential that that will help the home's wireless network to match up with the Internet speeds that are being wired into the home.

The second quarter of 2013 is a long ways away, so these new pricing and packaging schemes are in flux. And, for now, Comcast isn't verifying anything. "We don't comment on speculation or rumor and have nothing to announce at this time," a company spokesman said of the report.

— Jeff Baumgartner, Site Editor, Light Reading Cable

About the Author(s)

Jeff Baumgartner

Senior Editor, Light Reading

Jeff Baumgartner is a Senior Editor for Light Reading and is responsible for the day-to-day news coverage and analysis of the cable and video sectors. Follow him on X and LinkedIn.

Baumgartner also served as Site Editor for Light Reading Cable from 2007-2013. In between his two stints at Light Reading, he led tech coverage for Multichannel News and was a regular contributor to Broadcasting + Cable. Baumgartner was named to the 2018 class of the Cable TV Pioneers.

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