Comcast broadband strategy leads to customer complaints on pricing. (Media & Technology).Comcast Corp. is proving you can't make everyone happy. Not long after taking over AT&T Broadband last November, the Philadelphia-based cable company instituted a bundling plan that offers AT&T's existing broadband Internet See broadband. customers a discount if they purchase Comcast cable TV service as well. Customers who don't want cable TV have seen steep price hikes for standalone Internet service. AT&T Broadband customers were switched over to Comcast Internet access See how to access the Internet. in February. In April, Comcast raised the rate for standalone broadband service See broadband and broadband service provider. to $56.95 per month from $42.95. Existing AT&T broadband customers who purchase one of Comcast's cable TV packages as well receive the previous $42.95 rate. It's angered some broadband access See broadband and wireless broadband. customers who get a satellite TV feed and don't want to switch to cable. "We have gotten some complaints from satellite TV customers:' said Maria Hernandez, a management analyst and manager of cable customer service at the City of Los Angeles
Comcast is the nation's largest cable operator, and it led all broadband Internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem. Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a providers by adding 417,000 subscribers for the quarter ended March 31, according to Leichtman Research Group. Led by its acquisition of AT&T Broadband last November, the company has been expanding in major markets, including L.A. Some area residents face limited choices because the availability of competitive broadband Internet services such as DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary vary by area Under L.A.'s franchising regulations Comcast controls cable service in territory including parts of Venice, Marina del Rey, Hollywood, Koreatown, and Culver City. Some L.A. consumers welcome a service combination. "If Adelphia came to me with a bundled deal, I would jump at it," said Ronan Higgins of Hollywood Hills, who pays more than $100 combined for satellite TV and DSL Internet service from his local phone company. An Adelphia Communications Corp. spokesman said it does offer bundled packages areas where it has installed digital cable. The Consumer Federation of America The Consumer Federation of America (CFA) is a non-profit organization founded in 1968 to advance the consumer interest through research, education and advocacy. According to CFA's website, its members are approximately 300 consumer-oriented non-profits, which themselves have and Consumers Union have field complaints about Comcast's bundling with the Federal Commumcations Commission. In March, Sen. Barbara Boxer, D-Ca]if., wrote the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. that Comcast's bundling strategy in Mann County "could constitute a troubling threat to the burgeoning competition for cable TV service from satellite providers?' So far, the appeal of bundling has outweighed the drawbacks. Chairman Michael Powell's written response to Boxer earlier this month indicated that such practices are "an increasingly important strategy in the communications industry." Comcast said its decision to raise Internet service rates was based on market prices. "Before, we were under pricing the service. AT&T Broadband was charging $42.95 when it was faster than DSL." said Debi Picciolo, senior vice president of the Southern California region for Comcast. She said there has been "very, very little backlash" from satellite TV subscribers. |
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