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Zorglub

join:2000-11-18
Fremont, CA

reply to DanB
Re: Watchdogs: Cable gouges broadband users

This all goes back to the "is Comcast a monopoly" debate. I've stated before that I believe that Comcast is a pseudo or quasi (pick the word you like most) monopoly in many places where they are the only broadband residential provider (as in high speed for $40-50 a month). Of course, you'll find ppl on this board stating that 56k or T1 are perfect substitutes to cable broadband, and therefore nobody should bitch about it.

Well, believe what you want, and let's see what comes out of this. More than likely, nothing will happen, and Comcast will go on his merry way ripping customers off. I'm just hoping that at some point new technologies will come along to break the cable monopoly, but that's still years away.

In the meantime, happy bundling!


IH8TCOMCAST

@12.152.x.x

While Comcast may not be a monopoly in the purest sense of the word, face it, they have a monopoly on the coax to your house. Other utilities MUST provide outside access to their phone or power lines to your house, not cable.

For you Comcast shills it's also not a "price break" for purchasing a bundle. Who's prices got lowered? The BEST you can do is stay even. It's a predatory practice to force dish owners to cable. They want to force you to get ALL services eventually through the coax (voice, data, TV) because they have total control of the line.

The few cable companies in the U.S. are nothing but modern day "robber barons" like the railroads in the late 1800's.

Prove me wrong gharney......


J D McDorce
Premium
join:2001-12-29
Westland, MI

reply to odog
said by odog See Profile:
want DSL? you have to get a dial-tone capable copper pair... while it is completely possible and is done in some circumstances. try calling up the phone company for DSL without a dial-tone line, and they will tell you it's a requirement.
One difference (which may not be directly relevant to the monopoly discussion) is that having a dial-tone capable copper pair for currently common ADSL has always been a requirement. Much of the current churn (at least with what we are currently seeing in this forum) is that the additional cost for non-CATV subscribers is directly related to the change of ownership from AT&T to Comcast for an existing cable internet connection.

Things would be much cleaner if Comcast were to state that the standard rate for their internet service is $57.95 with a $15 discount for CATV subscribers.


odog
Cable Centric Vendor Biased
Premium
join:2001-08-05
Norcross, GA
clubs:
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said by J D McDorce See Profile:
said by odog See Profile:
want DSL? you have to get a dial-tone capable copper pair... while it is completely possible and is done in some circumstances. try calling up the phone company for DSL without a dial-tone line, and they will tell you it's a requirement.
One difference (which may not be directly relevant to the monopoly discussion) is that having a dial-tone capable copper pair for currently common ADSL has always been a requirement. Much of the current churn (at least with what we are currently seeing in this forum) is that the additional cost for non-CATV subscribers is directly related to the change of ownership from AT&T to Comcast for an existing cable internet connection.

Things would be much cleaner if Comcast were to state that the standard rate for their internet service is $57.95 with a $15 discount for CATV subscribers.
agreed.

i was just trying to draw the parallel between the phone company not even giving you the option to seperate the products. want DSL get a dail-tone phone line, want cable internet pay more.
--
disclaimer: my opinions are my own, my employer is not responsible.


JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD
clubs:
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reply to AthlGrond
said by AthlGrond See Profile:
I am aware that there is not competition everywhere. (There isn't everywhere in Denver too) But as I said in most places there is. (in most places where Comcast provides HSI)
I don't know what kind of coverage CHSI has, but a recent study published by the pinkhamgroup shows that over 60% of folks in Alabama are beyond 18k cable feet from a CO. The study was done for all states, but only Alabama is shown in the free sample. I assume national DSL coverage doesn't vary too wildly from Alabama. Since there aren't that many places where Comcast has a cable competitor (oddly, I think Alabama is one of the exceptions), what leads you to believe there's competition in "most" places? Judging from the data I've found, I'd say there's NO broadband competition in most places.
said by AthlGrond See Profile:
BTW I get the same deal in the area with competition that you do without, though I'll be they try harder to keep me as a customer through better service and maintenance. (though I didn't get a bribe package like you did )
awwwwww, I'll share. Want the chocolate remote?

DonLibes
Premium,ExMod 2001
join:2003-01-19

reply to J D McDorce
said by J D McDorce See Profile:
Things would be much cleaner if Comcast were to state that the standard rate for their internet service is $57.95 with a $15 discount for CATV subscribers.
I agree with you - but it doesn't change the debate because $15 is so close to the actual price of the lowest cable tier - meaning they are indeed forcing you to buy cable TV service in order to get their broadband product. Now if they reduced the discount to say $5 which is below anyone's lowest cable tier, then I think they'd be in the clear to go ahead and offer the bundling discount without being deemed abusive of their monopoly.

By the way, for people looking for a technically correct phrase to describe Comcast in an area in which they are the only provider of broadband, I recommend you call Comcast a "de facto monopoly". Even Comcast doesn't argue with that phrasing.


Combat Chuck
Too Many Cannibals
Premium
join:2001-11-29
Erie, PA


reply to DanB
In all seriousness, my question to all of you who think that regulation is needed now, what evidence do you see that comcast is abusing it's "monopoly status" short of there being no competition in some areas?

Essentially the only evidence that comes to mind is that the price went up. The price went up on a lot of stuff over the last couple years. Comcast/ATTBI's increases were system wide (the price is similar both where they're the only provider and where there's much competition), and they are actually still price/bandwidth lower than most other providers (last time I checked Speakeasy was over $60.00 for 768/256 in my area). I believe the only place where they are significantly higher is where there are government entities offering broadband and in those cases it's hard to tell what the actual cost is because it's spread over the taxpayers in one form or another.

You can call it extortion (which I guess it technically is) or you can call it a discount (which it also technically is); the end result is the same and comcast wasn't the one who put forth the E word.
--
So it begins.

[text was edited by author 2003-03-27 17:20:37]


AthlGrond
Premium,MVM
join:2002-04-25
Aurora, CO
·Comcast

reply to JTRockville
said by JTRockville See Profile:
said by AthlGrond See Profile:
I am aware that there is not competition everywhere. (There isn't everywhere in Denver too) But as I said in most places there is. (in most places where Comcast provides HSI)
I don't know what kind of coverage CHSI has, but a recent study published by the pinkhamgroup shows that over 60% of folks in Alabama are beyond 18k cable feet from a CO. The study was done for all states, but only Alabama is shown in the free sample. I assume national DSL coverage doesn't vary too wildly from Alabama. Since there aren't that many places where Comcast has a cable competitor (oddly, I think Alabama is one of the exceptions), what leads you to believe there's competition in "most" places? Judging from the data I've found, I'd say there's NO broadband competition in most places.
My understanding was that AT&T built up in areas where other forms of HSI were already available. (may sound counter-intuitive but they did manage to get bought out by Comcast.) I was assuming that Comcast was the same. (but they may have a better business model.)
quote:
said by AthlGrond See Profile:
BTW I get the same deal in the area with competition that you do without, though I'll be they try harder to keep me as a customer through better service and maintenance. (though I didn't get a bribe package like you did )
awwwwww, I'll share. Want the chocolate remote?
Hehe, not really. But thanks for offering, its the thought that counts!

DonLibes
Premium,ExMod 2001
join:2003-01-19

reply to Combat Chuck
said by Combat Chuck See Profile:
In all seriousness, my question to all of you who think that regulation is needed now, what evidence do you see that comcast is abusing it's "monopoly status" short of there being no competition in some areas?

Essentially the only evidence that comes to mind is that the price went up.
Actually, there are a few issues but the price hikes themselves aren't one of them - for the very reasons you state. One such issue is that when you buy broadband, they force you to buy another of their products (or pay a higher price) - the other product being TV where they have competition (from satellite). To use their monopoly to undercut their competition in another area this way is considered abuse of their monopoly.

I'm not a lawyer (obviously) but that's my layman's understanding of this particular issue.


J D McDorce
Premium
join:2001-12-29
Westland, MI

reply to AthlGrond
said by AthlGrond See Profile:
My understanding was that AT&T built up in areas where other forms of HSI were already available. (may sound counter-intuitive but they did manage to get bought out by Comcast.) I was assuming that Comcast was the same. (but they may have a better business model.)
While I have very limited knowledge of the ex-TCI areas of (the former) AT&T Broadband, MediaOne (at least in areas that I am familiar with) was pretty indiscriminate regarding the locations where they had their high speed internet built out. Comcast was (and is) pretty much the same way - working toward the goal that if you can get our cable, then you can get our High Speed Internet. Sometimes I get the impression that Comcast believes that there is no other form of High Speed Internet than Comcast High Speed Internet.

gharney

join:2002-01-04
Laurel, MD

reply to IH8TCOMCAST
said by IH8TCOMCAST:
While Comcast may not be a monopoly in the purest sense of the word, face it, they have a monopoly on the coax to your house. Other utilities MUST provide outside access to their phone or power lines to your house, not cable.
internet access is not a utility.

there is nothing stopping another cable company from coming in and overbuilding.

quote:
Prove me wrong gharney......
you havent made a case to begin with.


Combat Chuck
Too Many Cannibals
Premium
join:2001-11-29
Erie, PA


 reply to DonLibes
said by DonLibes See Profile:
... One such issue is that when you buy broadband, they force you to buy another of their products (or pay a higher price) - the other product being TV where they have competition (from satellite). To use their monopoly to undercut their competition in another area this way is considered abuse of their monopoly
The problem is that Comcast HSI has competition in many areas (And I would bet that there are more potential customers in areas with HSI competition than without). Their policies are set system wide for both areas. How can they be abusing a monopoly in the areas without competition when their policies are set the same in areas with competition. The only way it could be even marginally considered abuse is if the discount was only offered in areas without competition.

And if you're going for the anti-competitive pricing route: I think you would have to show that they were actually losing money on customers with HSI and cable, relying on their larger assets to ride out the losses hoping DTV and Dish Network die off first.
--
So it begins.

[text was edited by author 2003-03-28 00:13:57]

billybagoil

join:2002-10-03
Franklin, TN

if you think it costs too much go back to dial up. you people make me sick. if you dont have cable you are not gonna die. you remind me of the people complaining about drug prices being to high. its not your right to have affordable high speed internet service. please stop asking your babysitter, the government, to help you get cheap internet service.

Zorglub

join:2000-11-18
Fremont, CA

reply to DanB
said by billybagoil See Profile:
if you think it costs too much go back to dial up. you people make me sick. if you dont have cable you are not gonna die. you remind me of the people complaining about drug prices being to high. its not your right to have affordable high speed internet service. please stop asking your babysitter, the government, to help you get cheap internet service.
I hope you feel better man. Should we infer from your posting that dying ppl don't have a right to seek treatment if they can't afford it?
You're right, I don't know why we have a government. Why do we know the FDA, the FCC after all? Let the biggest guy win! Yee ha!


JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD
clubs:
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reply to billybagoil
said by gharney See Profile:
there is nothing stopping another cable company from coming in and overbuilding.
Sez YOU gharney See Profile. RCN's testimony before the United States Senate Judiciary Committee, Subcommittee on Antitrust, Business Rights, and Competition has 28 pages full of reasons.
said by Robert Currey, Vice Chairman RCN Corporation:
The new entrant has no captive subscribers; no initial revenue and enormous start-up expenses such as securing the local franchise. This latter process alone generally takes six months to a year. Local franchise authorities usually attempt to secure as high a price as possible for granting a franchise and typically require high standards of proof of a franchise applicant’s financial and operational experience and capability. Multiyear construction commitments are normally required. Accordingly, the potential competitor must earmark funds, purchase long lead time items, enter into programming commitments, hire hundreds of employees in each market, and, most important, fight for each subscriber because the local citizens who want cable service are probably already customers of the incumbent. To use a well-worn metaphor, the lowhanging fruit has been picked. Installing fiber optic or coaxial cable throughout a community can cost tens to hundreds of thousands of dollars per mile. As a result, it has generally been thought that competitive MVPD service based on construction of a second local broadband distribution network is not sustainable financially and there has been relatively little of it, either before passage of the Telecom Act of 1996, or thereafter.
Looks to me like there are lots of barriers.
said by billybagoil See Profile:
its not your right to have affordable high speed internet service. please stop asking your babysitter, the government, to help you get cheap internet service.
I didn't have to ask!
said by FCC Commissioner Kevin J. Martin:
Encouraging the deployment of broadband services to all Americans should be a national priority. Such services are essential to the economy of the 21st century, dramatically reducing the costs of exchanging information and allowing previously local businesses to serve the world. Broadband services are especially important to rural America, providing business, educational, and healthcare opportunities to remote parts of the country. I am hopeful that, just as rapid developments in telecommunications and technology have driven much of this nation’s economic growth in recent years, broadband deployment will lead to a new period of growth. I thus believe that all levels of government should work to eliminate barriers to infrastructure investment and to accelerate broadband deployment.
Perhaps, gharney See Profile, you should share your views with FCC Commissioner Martin. It looks like he thinks there are barriers too.

DonLibes
Premium,ExMod 2001
join:2003-01-19

reply to Combat Chuck
said by Combat Chuck See Profile:
The problem is that Comcast HSI has competition in many areas (And I would bet that there are more potential customers in areas with HSI competition than without). Their policies are set system wide for both areas. How can they be abusing a monopoly in the areas without competition when their policies are set the same in areas with competition. The only way it could be even marginally considered abuse is if the discount was only offered in areas without competition.
When I said "areas", I meant product areas, not geographical areas. Sorry for the confusion.

I maintain what I said before, the leverage they are using to force customers to buy cable TV (or pay as if they did) when they buy broadband is what is considered anti-competitive. I agree with you it's not abusive in geographical areas where there are choices for broadband but you can't use that as an excuse to say then it can't be abusive in areas where they have the de facto monopoly.


Combat Chuck
Too Many Cannibals
Premium
join:2001-11-29
Erie, PA

My understanding is that you're saying Comcast is using it's HSI monopoly to force customers into going with cable. Right?

My thoughts are that:

Cable TV has competition from sat. everywhere thus no real monopoly.

Comcast HSI has competition in some areas (I would argue most per capita, but would like to see some numbers if anyone has them). And because they are acting the same in both areas, they aren't using HSI as leverage unfairly.

I do agree that they are using HSI to get cable customers, but that in and of it self is not unfair nor illegal.
--
So it begins.

DonLibes
Premium,ExMod 2001
join:2003-01-19

said by Combat Chuck See Profile:
I do agree that they are using HSI to get cable customers, but that in and of it self is not unfair nor illegal.
Ok, you're entitled to your opinion. Hopefully the FTC and DOJ will respond and tell us whether you're right or not.


newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD

reply to DanB
quote:
The Consumer Federation of America and the Consumers Union asked the Justice Department and the Federal Trade Commission to investigate whether the steep discounts offered when customers purchased both services constituted anticompetitive tying or predatory pricing.

"If there were ever a candidate for an investigation of predatory pricing under the antitrust laws, this would be it," said Mark Cooper, research director for the Consumer Federation of America. "Even if the government concludes that the price is not predatory in the classic sense, it must be deeply concerned about anticompetitive tying."

Predatory pricing is a just and accurate description of the current Comcast method of doing business. Customers who have had enough, and defect to satellite TV services are forced to pay higher HSI fees or retain the basic cable, and pay THAT fee, in order to keep the current ADVERTISED prices.
It is impossible to get a bill from Comcast for $42.95 a month.

I welcome this investigation and encourage everyone who is paying higher fees due to not subscribing to their basic cable to file a complaint with the FTC. »www.ftc.gov/

»About the Comcast is King news
--
The Rules of Spam | Maryland's New Anti-Spam Law
Where are we going? And what's with the hand basket?


halfband
Premium
join:2002-06-01
Huntsville, AL

reply to JTRockville
said by JTRockville See Profile:
Looks to me like there are lots of barriers.
Lots of barriers, but none are insurmountable. You can’t fault Comcast because they invested in running HSI to an area and the local Telco or another cable provider did not.
You were right about some areas of Alabama having competition. While I have the option of two cable internet providers, bellsouth DSL and some of the other DSL carriers, Comcast pricing is no different here than anywhere else. The other cable provider offers bundle discounts for tv, internet, and phone, the more you get, the more the discount. Bellsouth offers a DSL discount if you get the premium phone service, there is no discount for basic phone service. Basic phone service is mandatory to get DSL.
--
Registered Bandwidth Offender #40812
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