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Comcast Fights Google Fiber in Provo With New Pricing

Responding to Google's recent announcement to offer their $70, symmetrical 1 Gbps service in Provo, Comcast will be responding with pricing and packaging changes, according to company documentation obtained by Broadband Reports. According to the memo sent to employees, Comcast has started offering Provo residents their Digital Premier channel bundle, 105 Mbps service, and either Xfinity Voice or Xfinity Home Secure for $120 a month for three years.

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The memo also notes that Comcast's going to offer locals in Provo the option of a $100 double play bundle that includes the company's Digital Preferred channel package with broadband, or a $70 double play option that bundles the company's Limited Basic channel package with broadband.

Speeds for the double play bundles aren't specified in the memo, though I'm presuming it's 105 Mbps for the most competitive impact. One note: bundles including the home security service come with a three year contract, and historically the ETF on Comcast's home automation and security suite has been a real doozy. Locking customers into long-term contracts before Google Fiber arrives has been a favored tactic for incumbents like Time Warner Cable.

"As (competitors) enter new markets and expand their product offerings, they generate awareness through more focused public relations and marketing tactics to make a splash and garner attention," the memo tells employees. "Typically things that are new, different or controversial generate more news coverage than those that are stable and growing."

Click for full size
Granted Google Fiber's getting "more news coverage" because they're offering a product that's both incredibly faster and much cheaper than anything Comcast has historically offered. Google offers 5 Mbps for "free" after a $300 install fee, symmetrical uncapped 1 Gbps service for $70 a month, and a bundle of symmetrical 1 Gbps service and a full TV lineup for $120.

Nobody's able to get Google Fiber in Provo yet, but bundling home security and 105 Mbps service at the $120 price point is Comcast's first salvo in what one hopes is a significant competitive battle. Comcast's busy testing a variety of caps you'll likely not see pop up in markets where they face competition from Google Fiber.
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newview
Ex .. Ex .. Exactly
Premium Member
join:2001-10-01
Parsonsburg, MD

newview

Premium Member

... just goes to show ya

As soon as viable competition comes to an area ... prices drop.
And the one thing that Comcast needs nationwide is competition.
dfxmatt
join:2007-08-21
Crystal Lake, IL

1 recommendation

dfxmatt

Member

Re: ... just goes to show ya

the catch is: competition is so far ahead of comcast, that even a price drop is still garbage.

$120/mo for 105mb, while their voice service is useless with a data connection anyway, or $120/mo with google for 1gbps and a reasonable TV package.

not that hard to figure out.

dnoyeB
Ferrous Phallus
join:2000-10-09
Southfield, MI

dnoyeB

Member

Re: ... just goes to show ya

Right. Plus Comcast is a limited offer that's going to revert to ridiculous pricing when it runs out. Who want to bother with that!?
dfxmatt
join:2007-08-21
Crystal Lake, IL

dfxmatt

Member

Re: ... just goes to show ya

the only way to deal with comcast is always the same:

get promotion
at end of promotion, call the cancel
get the cancellation folks to give you a good deal on promotion

rinse and repeat ad nauseum, cancel if they don't have promotions and sign up under a new promotion.

that should tell you how crappy they are as far as services.

ScorpioRed
@army.mil

ScorpioRed

Anon

Re: ... just goes to show ya

Same old crap
Rob_
Premium Member
join:2008-07-16
Mary Esther, FL

Rob_

Premium Member

Re: ... just goes to show ya

With ANY ISP, google really needs to be nationwide

-Rob

DataRiker
Premium Member
join:2002-05-19
00000

DataRiker to newview

Premium Member

to newview
The shills are out in force on this article.
ilianame
join:2002-06-05
Burnaby, BC

ilianame

Member

Re: ... just goes to show ya

@DataRiker

To be qualified as a Shill, the commenter has to be paid for the "party favorable" comment.
In-case of Google the comments are Google-favorable free of charge to Google
Joe12345678
join:2003-07-22
Des Plaines, IL

Joe12345678

Member

Will HD and DRV be part of that price? Rent to own for boxes

Will HD and DRV be part of that price?

Also Google offers Rent to own for added tv boxes with out an outlet or mirroring fee.
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband

Member

Re: Will HD and DRV be part of that price? Rent to own for boxes

You can own those google boxes all you want, but when you move who is going to use the boxes on their network??? And what happens with those purchased boxes when Google decides that they need $$$ on that network and its shut down??? you own a paper weight.
kxrm
join:2002-07-18
Fort Worth, TX

kxrm

Member

Re: Will HD and DRV be part of that price? Rent to own for boxes

because owning, outright, a box is not better than paying $5 a month for years to rent your worthless paperweight right?
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband

Member

Re: Will HD and DRV be part of that price? Rent to own for boxes

And in those 5 years you could have done upgraded countless times to the new boxes that yet do come out. Own the box and you're stuck with a box after getting a new one. Why is buying the box only an issue with Cable when in fact Dish and DirecTV make you rent the boxes as well? But you still ignored the question on what you would do with the box once you move and nobody else accepted the box- especially a Google Fiber box when they're done when their hobby.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: Will HD and DRV be part of that price? Rent to own for boxes

honestly, they could do offsite dvr with fiber.
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband

Member

Re: Will HD and DRV be part of that price? Rent to own for boxes

You would still need a box for that to function. So you are back to renting the box or buying a paper weight if GFiber was to close or be sold out.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: Will HD and DRV be part of that price? Rent to own for boxes

offsite dvr would remove the need for the dvr. you can totally control it all with software. I think what people want is to not pay the ridiculous fees to rent the box year after year. They don't cost that damn much in the first place. you shouldn't have to rent.

A roku doesn't cost that much and that is about all the more powerful the box would really need to be.

oh, and the box would have a warranty. If it is even half a year, it pays for itself.
Skippy25
join:2000-09-13
Hazelwood, MO

Skippy25 to TBBroadband

Member

to TBBroadband
Because you really have nothing else to try to beat down or compare the 2 to you are going to use DVR box ownership as your big weapon?

It is a miscellaneous expense, who cares. I spend more in toilet paper a year and I dont get to reuse or sell that either.
jjeffeory
jjeffeory
join:2002-12-04
Bloomington, IN

jjeffeory to TBBroadband

Member

to TBBroadband
My brother has TWC - Columbus, and has HAD the SAME box for 8 years. They won't upgrade his box. So that's not a very good argument.
brad152
join:2006-07-27
Chicago, IL

brad152 to TBBroadband

Member

to TBBroadband
Dish Network does not make you "rent" the boxes. I own outright a Hopper and Joey setup, and also enjoy no contract with them either.

I pay $115/mo between CenturyLink and Dish Network. have 40/5 internet and any channel i desire to watch. It's not 1Gbps but i'm not giving Cox Communications any of my money so it's worth it.
devolved
join:2012-07-11
Rapid City, SD

devolved

Member

Re: Will HD and DRV be part of that price? Rent to own for boxes

Right because you can go down to your local electronics store and purchase a Dish Network box, whereas you can't just walk in to BestBuy or Radio Shack and buy a HD DVR cable box off the shelf.
jjeffeory
jjeffeory
join:2002-12-04
Bloomington, IN

jjeffeory to TBBroadband

Member

to TBBroadband
Don't move.
It will have been a good value?
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

response?

Well, gigabit vs 100 megabits isn't really competition. It won't be until docsis 3.1 rolls around that better tiers & prices could REALLY be offered. When that happens, maybe Google can lower or eliminate the install fee. Buying dual play w/ video for a year also eliminates the fee now (prorate of $300 over a year if canceled), so Comcast really isn't offering much, except to say they can offer theirs now...

At least it's not an ETF contract.. nobody would be stupid enough to sign up for one if that was the catch.. let's see how many jump ship when it's really GO TIME!
elefante72
join:2010-12-03
East Amherst, NY

2 recommendations

elefante72

Member

Re: response?

People are lazy and Comcast knows that. If they can lock them into new contracts, lower prices now even if GOOG is a superior product, the uptake rate will be low.

I was reading through Verizon's last filing and fully 67% of the people that have internet are on 15/5 (the lowest tier), so whilst we @ DSL think you need 1GB, you do not. If Comcast offers 50 or higher that should satisfy a VAST majority of their footprint.
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband

Member

Re: response?

It's not called lazy. It's called people do not like change. And its proven. Just because Google is moving in does not mean that everyone will accept them and move over. Actually, many people will not move service providers for fear of losing more than what they have now. if people were interested in a change and other services, they would have switched to the iProvo network a LONG time ago, but yet never did.

WHT
join:2010-03-26
Rosston, TX

WHT

Member

redacted

redacted
Cobra11M
join:2010-12-23
Mineral Wells, TX

Cobra11M to elefante72

Member

to elefante72
except the low uploads...., which for any cable company sucks!
34764170 (banned)
join:2007-09-06
Etobicoke, ON

34764170 (banned)

Member

Re: response?

Ya, that's DOCSIS' Achilles' heel. You can only hope for FTTH from the cable co's at some point.

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

tshirt to elefante72

Premium Member

to elefante72
Not just lazy, comfortable, ie they have it connected and know how it works vs ??? some scary new fangled thing that may explode (or not) .
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband to tmc8080

Member

to tmc8080
The thing is; how many people have left their MSO for Google. If it was really that great, then they would release numbers showing that. And after yesterday and their stunt that they don't care about any of their customers, more people will start to realize they are no different than what they have now, and still force bundle you to their products. Which should be illegal. But with Google its okay. Just not with any other carrier.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: response?

Are you a shill or something?
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband

Member

Re: response?

Nope. But I stand by my comment.
Skippy25
join:2000-09-13
Hazelwood, MO

1 recommendation

Skippy25 to ArrayList

Member

to ArrayList
Read his history and you surely would not need to ask that question.

He has been here longer than me, but while I use my same name since joining, he has had to change his multiple times to try to keep the smoke cover.
34764170 (banned)
join:2007-09-06
Etobicoke, ON

34764170 (banned) to ArrayList

Member

to ArrayList
It is pretty pathetic eh.
pattyboy
join:2013-08-15

pattyboy to TBBroadband

Member

to TBBroadband
What interest would it be for Google to post penetration rates ? Accelerate their competition's deal making for customers? There is no good business reason to do so. Bernstein's survey of potential customers in KC, reported 60% extremely likely to switch.

People in Austin, even more so, like shiny new things, technology based, so I'd tack on about 10% to that in Austin.
elray
join:2000-12-16
Santa Monica, CA

elray to tmc8080

Member

to tmc8080
said by tmc8080:

Well, gigabit vs 100 megabits isn't really competition. It won't be until docsis 3.1 rolls around that better tiers & prices could REALLY be offered. When that happens, maybe Google can lower or eliminate the install fee. Buying dual play w/ video for a year also eliminates the fee now (prorate of $300 over a year if canceled), so Comcast really isn't offering much, except to say they can offer theirs now...

100 megabits is plenty competitive for the public at large, who are concerned about 2M streams from Netflix and Youtube, not bragging rights.

The real showdown will be the channel lineups and On-demand content.
So far, Google hasn't shown that it can compete in the pay-tv arena.

The other place to "win" is below-the-line. Whichever provider simplifies bills and shields the customer from those niggling extra charges and taxes will certainly gain credibility and market share.
axus
join:2001-06-18
Washington, DC

axus to tmc8080

Member

to tmc8080
I think Comcast could offer a better TV package to compete, or multiple room DVRs or something. Anybody know what's included in "Digital Preferred" package?

Note that I don't use cable TV, so I'm clueless, but it's valuable to lots of people.
AndyDufresne
Premium Member
join:2010-10-30
Chanhassen, MN
Ubiquiti EdgeRouter ERPro8
Netgear R7000

AndyDufresne

Premium Member

Typical response from big cable

TW is doing same thing in Kansas. Mark my words, sale drones will forget to mention the contract and bohica etf during the deal and when clueless Joe or Jane call in to cancel because Gfiber is availabale they will be in for a shocker.

So far big cable has only been losing video subs just wait until people figure out they don't need their overpriced home phone service.

•••••••
Onemore
Premium Member
join:2006-05-12
Louisville, KY

Onemore

Premium Member

Google Fiber

Hoping that Google Fiber, will one day be in every state and or every city in the US. As I watch Billionaire cable companies scramble to begin to try to change their ways, in every city that Google Fiber says that it will begin to run fiber to the home....it does my heart good. Hoping that Google Fiber comes to my city one day, so that I can watch, up close, the war of the Billionaires.

••••••••••••

AnonMe
@comcastbusiness.net

AnonMe

Anon

And here I thought...

And here I thought Comcast wasn't making much, and that's why they had to keep adding new fees. Ha Ha Ha!!

Maybe there is something to this competition thing after all!

Would still take the 1 Gbps option over Comcrap's offer.
mingkee27
join:2013-06-21
Brooklyn, NY

mingkee27

Member

no usage cap is sure winner

Google has to beat down Comsuck for such ridiculous practice.

•••

Zenit_IIfx
The system is the solution
Premium Member
join:2012-05-07
Purcellville, VA
·Comcast XFINITY

Zenit_IIfx

Premium Member

Well, its better than what we are paying.

Isnt it "comcastic" when prices magically reduce due to actual competition? They are doing this to prevent customers from walking away. People dont like to wait for an installation, etc, and this is an incentive for those that dont understand the difference between "Mbees" and "Geebees" and will pay the same for less. :P

We are paying $135 here for Performnace internet (25mbit), Digital Basic TV with 2 boxes (only 1 HD), and Digital Voice.

Paying $120 for 105mbps would be nice, but here there only competition is Verizon DSL. VZ does have FIOS not too far away, but in our town Comcast has free reign. The county is trying to get VZ on the ball with construction though.

But since Comcast and Verizon have an agreement with eachother, I highly doubt FIOS being available would reduce prices.
pattyboy
join:2013-08-15

pattyboy

Member

Why Google can succeed, if they want to.

Ultimately, Google won't back out. Once a cable system is built, it's sitting revenue. Even if they offered only comparable services, they would still shake out to around 30% market share. I would guess, that at their price point, they will settle somewhere in between 40 to 50% share within 5 years. Most of these companies, are making 90+% profit margin on their high speed data.

The build is relatively simple and should require significantly less maintenance than an RF based system. They have to battle squirrels and low hanging strand like everyone, but that's pretty much it. They have economies of scale in areas that most people don't think about or even know about, that also give them competitive advantage. This is what you get when you have the reputation and checkbook to afford the best and brightest employees. When they have an issue, they simply design a way around it. Everyone else pays Cisco, Alcatel, or ARRIS to do it for them, with generally, lackluster results.

•••

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

skeechan

Premium Member

Yay, predatory pricing returns to Comcast

»'Discounted' Competition [79] comments

Let's hear it for the Robinson-Patman Act!
quote:
TITLE 15 > CHAPTER 1 > § 13

§ 13. Discrimination in price, services, or facilities

Release date: 2004-05-18

(a) Price; selection of customers
It shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce, where such commodities are sold for use, consumption, or resale within the United States or any Territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, and where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them...
People in the next Comcast market pay more? Looks to me like that is illegal (predatory pricing) unless Comcast can demonstrate it is actually cheaper to distribute their product in the Google Fiber markets or otherwise is more costly for them to distribute in the other market.

••••••••••

WHT
join:2010-03-26
Rosston, TX

WHT

Member

Predatory Pricing

The bench mark for illegal predatory pricing is when the predatory provider sales a product for less than what it costs them to provide the product.

Comcast could certainly sue Google with an antitrust claim to prevent Goggle becoming a monopoly if Google provides a service service so low in cost (or similar cost with higher speeds) that it could result in Google being the provider of choice by a wide margin. Antitrust laws are there to benefit the consumers. The burden would be on Comcast to show Google's potential monopoly would ultimately not benefit consumers.

With that said....What if an incumbent cable operator had a 15 Mbps tier for $50 per month and a 30 Mbps tier for $60 per month. Would you switch if a new provider came into town with 20 Mbps for $30 per month and uncapped service and still make a very healthy profit?

What if new provider offered merely 10 Mbps for $30 per month, or jaw-dropping 30 Mbps for $30 per month?
pattyboy
join:2013-08-15

1 recommendation

pattyboy

Member

Re: Predatory Pricing

Good luck with that when most cable providers are making 90+% profit margin on internet access. Google is likely just trying to figure out how they ever will survive with only a 30-50% profit margin.
biochemistry
Premium Member
join:2003-05-09
92361

biochemistry

Premium Member

Cable Fiber

Are there any cable companies out there trying to insulate themselves from Google Fiber and FIOS by running fiber all the way to the home?

••••••
DarienRedSox
join:2013-02-10
Darien, CT

DarienRedSox

Member

Install Fee?

The original news story talks about Google's 300 install fee, but part of the agreement to get into Provo was not to have this install fee.
millerja01a
join:2005-10-03
Durham, NC

millerja01a

Member

Do a little research folks

Looking of GFiber's site shows that for those worried about the support of the Network TV and Storage Boxes, firmware updates are done in the background so long as the device is online. The fee structure seems to include the first TV box, each additional TV box is $5/month.

$120 tier gives you 2TB local storage box 1TB GDrive/Gmail cloud storage, full channel line up (you still pay more for HBO and the like, optionally) Nexus 7 tablet as your remote along with 1GB symmetrical. Install fee is waived for this and the $70/month tier.

Looking at just the channel line up alone, Sat and Cablecos would charge $100+ for a matching package before equipment and other fees.

Gfiber is a sweet deal. Regardless of it's longevity, if you can get it, get it and work it. Here's the skinny on what you owe based on the tier.

Free internet tier requires that you pay the $300 install fee.
$70 Tier - Keep the service for 1 year and pay nothing upon cancellation, otherwise you owe $25 for each month short of one year's service.
$120 Tier - Keep the service for 2 years and pay nothing upon cancellation, otherwise it's the same as the $70 tier for each month short of 2 years. For the devices, when you keep the service for 2 years, upon cancellation, you keep the tablet and storage box. Otherwise you can return them in working condition or buy them from Google based on a prorated market value.

Clearly this is a contract but unlike the incumbents, there's no promotional pricing that ends and balloons your bill. At the end of the prescribed periods, you monthly costs stay the same(taxes and muni-fees may change). A flat model with juicy stuff.

I'm not a shill for GOOG. I just like finding a good deal on telcom service. This is good deal.

GlennLouEarl
3 brothers, 1 gone
Premium Member
join:2002-11-17
Richmond, VA

GlennLouEarl

Premium Member

Gee, Comcast...

does the saying "don't take a knife to a gunfight" ring any bells? ...no? -- didn't think so.

UncleBobTn
@comcast.net

UncleBobTn

Anon

Comcrap needs their ass kicked

Bring it on, Google.
travis5379
join:2005-03-28
Moscow, ID

travis5379

Member

What is this...email? The subject line is unnecessary.

What about all the people who don't live in some po-dunk town in Utah?

Do they continue getting f*cked by Comcast?
dubenezic
join:2004-05-06
Elizabeth, NJ

dubenezic

Member

Who would want to willingly do business with Comcast?

If my choice was Google or Comcrap, I choose Google. Comcast would never offer 1Gbps upload.
Chaldo
join:2008-03-18
West Bloomfield, MI

Chaldo

Member

hate comcast, I am happy competition is coming!

I been saying for a while I have Comcast, but they keep going up on price I can't wait till real competition comes in my area so these monopoly sons of Bit**es realize they have to compete on pricing. I call comcast to see if I can get a new deal and the people on the phone don't even care anymore "take this deal or cancel and go with dish" man it seems like Comcast doesn't care about customers anymore. Honestly, I wish they would split up Comcast so they can be more local and have better pricing.
lwhite68
join:2013-08-18

lwhite68

Member

re

comcast vs. google, bout time, been waiting on this moment. im more interested in google vs charter though (call me selfish i dont care this is the internet not like i know you people anyways)

lol @ comcast trying to fight 7 years of google internet @ $3.60/mo with $120/mo for 3 years
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