EmailEmail
PrintPrint
Comcast hopes bundles help lure more customers
Wednesday, April 05, 2006

Companies that provide high-speed Internet through DSL spent much of the past year slashing prices -- and picking up new customers. Now, the nation's largest cable company is taking its turn.

Comcast is unveiling a discounted "Triple Play" bundle to the Pittsburgh market today, allowing new customers to purchase digital cable television, phone service and cable broadband for $99 per month for the first year. Customers who already use Comcast for one or two of those services can buy the remaining products for $33 each per month.

Kevin Casey, president of Comcast's northern division, said the "power of the bundle" would save customers more than $450 per year over buying the three services individually. After one year, customers will return to paying for the products a la carte, but will receive a "bottom of the bill" discount between $10 and $15 per month, Mr. Casey said.

Currently, the customers pay $42.95 for high-speed Internet, $39.95 for phone service with unlimited local and national calling and $49.49 for digital cable with on-demand video.

By bundling the products together, Comcast is hoping to lure some of its approximately 600,000 cable TV customers in the Pittsburgh region over to its phone and Internet services, each of which has about 100,000 customers, it said.

The bundling plan, which already has been introduced in Boston and a few other markets, represents a counter-punch to Verizon and other DSL providers that have been luring customers through cut-rate pricing, cutting into cable's overall lead in the high-speed Internet arena.

The new package enables Comcast to distinguish its services from its competitors, which in addition to Verizon and AT&T on the phone and high-speed Internet front include satellite TV companies Echostar and DirecTV, said Rob Sanderson, a San Francisco analyst who tracks Comcast for American Technology Research Inc. "Right now, [Comcast is] the only competitor that can offer those three products, so that's an advantage," he said.

In the past year, Verizon and AT&T have cut their DSL prices to $14.95 and $12.99, respectively -- low enough to attract customers even though DSL can be up to seven times slower than cable broadband.

"One's cheap and one's fast," said Mr. Sanderson. "We've seen [DSL] take market share in terms of share of new broadcast subscribers, but cable still has two thirds of [the] installed base."

Cablevision, a cable company that serves the New York market, introduced a similar bundle in 2004 for about $90, which Mr. Sanderson said has shown good results.

First published on April 5, 2006 at 12:00 am
Anya Sostek can be reached at asostek@post-gazette.com or 412-263-1308.