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Comcast Fights Google Fiber in Provo With New Pricing
by Karl Bode 10:04AM Thursday Aug 15 2013
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."

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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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East Amherst, NY
·Verizon FiOS

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reply to tmc8080

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.