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Comcast CEO Embraces Google Fiber
'Oh, I Hope There's a Demand For It,' Says CEO

Most of the companies that suddenly find themselves competing against Google Fiber haven't been particularly graceful about that fact. CenturyLink responded to Google Fiber's entry into "their" Provo, Utah market by whining incessantly it. Other companies, like Time Warner Cable and Comcast, have tried to draw press and public attention away from their own high prices and slow service by insisting that nobody needs or even really wants symmetrical 1 Gbps connections for $70.

Speaking recently at the NCTA cable trade show, Comcast CEO Brian Roberts responded to inquiries about Google Fiber by embracing the speed whole-heartedly:
quote:
"Oh, I hope there’s a demand for it," he responded. "The more customers crave speed, the more the kids in the garage and the geniuses around the world can invent applications that require speed, that’s the best thing that can happen to our industry. We have to embrace that competition."
Granted Comcast lobbyists are still running around trying to argue that United States broadband doesn't have serious competition and price issues and that anyone who claims otherwise is confused, but at least it seems they've now realized that when you sell broadband, you want your customers to be excited about faster and better options.
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skeechan
Ai Otsukaholic
Premium Member
join:2012-01-26
AA169|170

skeechan

Premium Member

They have a point

$70 while a good deal for 1Gb service, not everyone has need for it and would rather save $20 (or more with perpetual triple play promos) while still getting a service that suits them just fine.
silbaco
Premium Member
join:2009-08-03
USA

silbaco

Premium Member

Re: They have a point

Honestly, $50 100Mbps service is what we need right now, more than $70 1Gbps.
Kamus
join:2011-01-27
El Paso, TX

Kamus

Member

Re: They have a point

said by silbaco:

Honestly, $50 100Mbps service is what we need right now, more than $70 1Gbps.

That's some pretty poor math right there.

skeechan
Ai Otsukaholic
Premium Member
join:2012-01-26
AA169|170

skeechan

Premium Member

Re: They have a point

It isn't bad math as total price is king, not cost per Mb.
innoman
-
Premium Member
join:2002-05-07
Seattle, WA

innoman

Premium Member

Re: They have a point

I'd rather have $70 for 1Gbps. It would be more than I need, but I'd rather have room to grow than have to wait for another upgrade so quickly in the future.

At this point, they should go ahead and deploy 10Gbps capable lines and prepare for the future.
CXM_Splicer
Looking at the bigger picture
Premium Member
join:2011-08-11
NYC

CXM_Splicer to skeechan

Premium Member

to skeechan
Well what is better... $70 for 1Gig or $69.99 for 75/35 FIOS? If price were always king, no cable/phone company would bother offering anything above a base package.

ITALIAN926
join:2003-08-16

ITALIAN926

Member

Re: They have a point

Neither is better, its a toss up when 95% of the country is using their internet to use facebook and stream Netflix utilizing a whopping 5.1 Mbps.

skeechan
Ai Otsukaholic
Premium Member
join:2012-01-26
AA169|170

skeechan to silbaco

Premium Member

to silbaco
It is what you WANT, not what you NEED right now.
Kamus
join:2011-01-27
El Paso, TX

Kamus

Member

Re: They have a point

said by skeechan:

It is what you WANT, not what you NEED right now.

People don't need iPhones either, but i think they are selling quite well.

skeechan
Ai Otsukaholic
Premium Member
join:2012-01-26
AA169|170

skeechan

Premium Member

Re: They have a point

Apples and oranges. You speak of hardware, I am talking about ongoing service fees.

Meanwhile iPhones wouldn't sell for crap if they weren't subsidized by the carriers. They also wouldn't sell well if their ongoing monthly fees were 50% higher than comparable Android handsets. Why? Because price is king.

People aren't going to pay 50% more to do nothing more than they are already doing. People in general don't need 1Gbps. There is nothing they can do with it than they can't do with 20Mb cable internet.
34764170 (banned)
join:2007-09-06
Etobicoke, ON

1 edit

34764170 (banned) to silbaco

Member

to silbaco
said by silbaco:

Honestly, $50 100Mbps service is what we need right now, more than $70 1Gbps.

More like $40. Otherwise its too much.

anon88
@verizon.net

anon88 to silbaco

Anon

to silbaco
said by silbaco:

Honestly, $50 100Mbps service is what we need right now, more than $70 1Gbps.

I'd rather have 30Mbps for $30 a month.
dra6o0n
join:2011-08-15
Mississauga, ON

dra6o0n to silbaco

Member

to silbaco
A good level based on American/Canadian pricing could be:

$25 per 15/15 Mbps, excludes modem + activation.
$45 per 30/30 Mbps, same as above.
$65 per 60/60 Mbps, same as above.

*Note that this is for unlimited bandwidth. Putting bandwidth caps severely drops the appealing factor in the plans.

Then add a speed increasing option so these package can be increased at a small fee.

$5 - Add 5/10/15 Mbps to each respective tiers.

Granted Google Fiber may be a good starting point to offer super fast internet for a decent price, the idea is to lower the overall cost for the level you'd want, and CAN use.
You want 1 Gbps, but how do you use it? Upload a 1 TB video?

So with the regular consumers in mind, and not for the sake of incumbents, to have a affordable level of internet whilst allowing a better distribution and stability in the bandwidth on the network.

Incumbents may hold a system with the capacity of lets say 10,000 Mbps max and may have like 1000 subscribers with 10 Mbps each, as a example (crude but its a estimate). They'll see their network speeds plummet if they do not have a sustainable level.

But with Google Fiber, you can distribute it less for a much much lower price point, and not worry about the high populations buying it up and killing your network with high population and lower speeds.

A $70 position would deter some low incomes from trying it, restricting it to a lower population count than if it's cheaper.

The 'low cost' version of google fiber doesn't allow much wiggle room for customization.

The key point is that if we grant consumers the ability to customize their plans, the popularity and profits do increase.

Ftr1ngle
@suddenlink.net

Ftr1ngle to silbaco

Anon

to silbaco
Are you kidding me. The cable companies have such a squeeze in Internet is putting the US behind behind in the Internet problem. I live in nc I pay 75 bucks for 55down and 3 up. Horrible pricing and data caps. And it's the only internet provider I can have.
Every year Internet usage is going to go up and Better pricing and speeds will need to happen. I would move to were google fiber is if I wasn't in the military. Cable companies are like a Mafia.
brianiscool
join:2000-08-16
Tampa, FL

brianiscool

Member

Oh, there is.

The quicker we get to 1GB. The quicker we can gear away from Comcast Cable.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Oh, there is.

And you seriously think Comcast won't be a major player in the ISP landscape of 1 Gbps services?
brianiscool
join:2000-08-16
Tampa, FL

brianiscool

Member

Re: Oh, there is.

Comcast does not want to become a dumb pipe. They will do anything to keep on getting people to sign up to T.V. service.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Oh, there is.

So your conflating Comcast's pay TV service with Comcast's eventual service offering of residential 1 Gbps services?
dfxmatt
join:2007-08-21
Crystal Lake, IL

dfxmatt to openbox9

Member

to openbox9
when you can download a TV show in high quality in somewheres around a minute, there's no reason whatsoever for an actual TV subscription (or the Ads that come with it).

The faster the speed gets, the less actual TV becomes relevant.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Oh, there is.

Perhaps I misunderstood. Comcast is and will be a major ISP. Why are we talking about pay TV service?
brianiscool
join:2000-08-16
Tampa, FL

brianiscool

Member

Re: Oh, there is.

Comcast will not last long in this market. They like the nickel and dime people and will overcharge for it.
silbaco
Premium Member
join:2009-08-03
USA

silbaco

Premium Member

Re: Oh, there is.

And who is going to take them out? The only real competitor they have is Verizon.
dfxmatt
join:2007-08-21
Crystal Lake, IL

dfxmatt to openbox9

Member

to openbox9
so there's a 2 step process here.

the first is when they lose their TV revenue. the second is when everyone becomes a dumb pipe, if comcast keeps raising their bandwidth speeds. Even if we have a duopoly (and mostly monopoly) for internet access, people will still follow the leaders. It's not a "if" but a "when" question.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Oh, there is.

So, TV revenue is disappearing? Maybe slowing growth, or slightly declining, but I don't see it disappearing anytime soon. ISPs are dump pipes right now, so I'm scratching my head a little. I'm not sure I understand your if/when question.
dfxmatt
join:2007-08-21
Crystal Lake, IL

dfxmatt

Member

Re: Oh, there is.

are you joking? TV revenue in general is declining very quickly. At the moment comcast/verizon/google are the only people with any remote semblance of "Acceptable speeds", 2 of those being unavailable in any given area. However, with comcast's buildouts it has been sparking higher speeds and competition in many areas. If that continues, comcast is screwed. Their entire basis of the company is on not competing and not investing in rollouts, and thus profit (and not serving the customer).
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Oh, there is.

Not joking, but I need to wonder if you are. Declining very quickly? Comcast is screwed because it's deploying improved infrastructure and service offerings? I'm definitely not following your logic now.

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207 to openbox9

Premium Member

to openbox9
Pay TV service is important and relative to every business decision that Comcast makes; whether it be service price updates, bundling price options, fees, partnerships, download/upload caps, and any artificial restrictions placed on third party equipment and services.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Oh, there is.

Of course. Pay TV service is one of Comcast's core businesses. Not sure how that eliminates Comcast from being a major player on the ISP landscape.

ITALIAN926
join:2003-08-16

ITALIAN926 to openbox9

Member

to openbox9
quote:
Perhaps I misunderstood. Comcast is and will be a major ISP. Why are we talking about pay TV service?
How could you NOT understand his point?. The ISPs offering TV service has EVERYTHING to do with them not improving broadband speeds.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: Oh, there is.

Oh, obviously Is that why Comcast is leading the way as one of the US' largest ISPs?
brianiscool
join:2000-08-16
Tampa, FL

brianiscool

Member

Re: Oh, there is.

Comcast will go in reverse when more people
stop using using cable.

•••
Kamus
join:2011-01-27
El Paso, TX

Kamus to openbox9

Member

to openbox9
said by openbox9:

And you seriously think Comcast won't be a major player in the ISP landscape of 1 Gbps services?

I do.

•••

ridebud
Challenge Accepted
join:2003-12-06
usa

ridebud to brianiscool

Member

to brianiscool
said by brianiscool:

The quicker we get to 1GB. The quicker we can gear away from Comcast Cable.

You mean the quicker we can get to Comcasts Cap, the more money they can extract from your wallet.
brianiscool
join:2000-08-16
Tampa, FL

brianiscool

Member

Re: Oh, there is.

Comcast will have to remove the cap. A lot of providers are realizing that is not working with the ISP's.
relish
join:2009-07-21
Sterling Heights, MI

relish

Member

Comcast next major 1gbps provider?

It seems to me that Comcast could potentially be the first mainstream ISP to provide 1gbps. Great news!

••••••••

Almost3weeks
@comcast.net

Almost3weeks

Anon

Come on Karl... you're better than that

This may have been news 3 weeks ago ... now it's just *yawn*... until they actually provide something
vrzndsl48
join:2011-07-20

vrzndsl48

Member

Give me fiber....

Please, please come to NJ, Google Fiber. There's plenty of folks here that Verizon is shafting and Comcast isn't providing reliable broadband to.......

whfsdude
Premium Member
join:2003-04-05
Washington, DC

whfsdude

Premium Member

Lip Service

This is lip service. Comcast has a FTTH product in the NE, they could easily market consumer gigabit service on it to gauge demand.

kontos
xyzzy
join:2001-10-04
West Henrietta, NY

1 recommendation

kontos

Member

Re: Lip Service

said by whfsdude:

they could easily market consumer gigabit service on it to gauge demand.

Once you put on your green beancounter's visor, you start to interpret "demand" in a way that isn't quite the same as you and me.

scenario A - 1G "premium" service is made available at a $75-100/month price point. Demand = the 10-20% of oddballs that pay for premium service already (at 20-105 mbps). No net gain.

Scenario B - a 1 G standard service at $50-75/month. Uh-oh, that could be a price increase. You're going to have some complainers. Uh-oh, those premium weirdos just dropped back to standard. Demand = no net gain, maybe even a loss.

this is of course assuming that for most of Nebraska, DSL distance limits make that not such a viable option for most cable internet subscribers right now.

AnomMe
@comcastbusiness.net

AnomMe

Anon

Re: Lip Service

Bingo!!
Joe12345678
join:2003-07-22
Des Plaines, IL

Joe12345678

Member

Google Fiber lets you owns the additional TV Box(es) outrigh

owns the additional TV Box(es) outright. Cost $120 one time or $5 per month for 24 months.

Comcast bills you like $10 for each additional box and you don't own them and want more then DVR it's like $15-$20 each.

at least google has that part right don't rip people off for hardware.
tim tim tim
join:2010-08-14
Lutz, FL

tim tim tim

Member

Re: Google Fiber lets you owns the additional TV Box(es) outrigh

what happens when that box fails? you have to go buy another or do they just come replace it like the cable co's do?
Joe12345678
join:2003-07-22
Des Plaines, IL

Joe12345678

Member

Re: Google Fiber lets you owns the additional TV Box(es) outrigh

after you have the box for 1 year it's less get a new one at full price then it is to pay comcasts fees
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

upgrade costs

cable had a virtual monopoly on wherever they deployed 10 megabit, then 15 megabit service in the 90s and early 2000's because NOTHING competed with it (in the residential markets--- lame DSL was a tinker toy compared to cablemodem service) on an apples to apples basis until 2003 when Verizon FIOS became a reality.

Yes, it will take billions to upgrade infrastructure, but these costs are already rolling to the prices charged. Broadband is seeing it's first overall jump from $30 for basic service to $50 and more.. So, these upgrades are more than being paid for.. you're just not seeing the benefits quickly enough.

The incumbents want to walk away with years' more of profits first... consumers and SOME municipalities are fed up with this, and that's why you see Google fiber getting built in places you'd never think would see broadband EVER when left to the devices of incumbent providers.

•••
APG
Premium Member
join:2007-01-13

1 recommendation

APG

Premium Member

The bandwidth will be there

A long time ago, when bandwidth was an actual issue and famous people still answered their own email, a father of the internet said this to me: "Never worry about bandwidth. It'll be there."

That was over twenty years ago. And during those years, his observation has never failed. I remember reading numerous articles in those about about tons of schemes that could regulate "scarce" bandwidth... none of them ever came to pass.

Vint was right... the bandwidth will be there when it's need, the socialistic prognostications of this website notwithstanding.

Honestly, if you've reading this site for years, have any of Bode's henny-penny predictions ever -- ever! -- come true?
tkdslr
join:2004-04-24
Pompano Beach, FL

tkdslr

Member

I'll take $3.60 mo for 5Mb Down/1Mb Up any day..

I would fork out 300$ for 7 years of upfront service in a heart beat.. That's a deal which can't be beat...

Having survived on a fraction of that speed for the last 14 years.. (Mediaone/At&t 3Mb.. Adsl Telocity/Directv/Dsl express/Speak easy/Megapath..) .. For me that would be an upgrade..
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

Comcast still wins on speed

Even if a whole bunch of cities got Google Fiber, Comcast will still compete against the Slowskys' DSL and U-Verse connections in many, many more places where they win handily in terms of speed.

JigglyWiggly
join:2009-07-12
Pleasanton, CA

JigglyWiggly

Member

Re: Comcast still wins on speed

plsmen give me gigabit
I have xtreme 105 and it's way too slow.
105 megabits is like for people who are afk.
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

Re: Comcast still wins on speed

I hope you're joking.

NOCMan
MadMacHatter
Premium Member
join:2004-09-30
Colorado Springs, CO

NOCMan

Premium Member

Century Link fiber in Colorado Springs

Might be why CenturyLink is laying all that fiber in Colorado Springs lately.