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Summary:

Not happy with 2.5 billion page views a month, Comcast (CMCSA) is looking to enhance its position as one of the top Internet destinations in the US. And as it does so, Comcast challenges the traditional Internet names such as Yahoo (YHOO) and Google (GOOG), by […]

Not happy with 2.5 billion page views a month, Comcast (CMCSA) is looking to enhance its position as one of the top Internet destinations in the US.

And as it does so, Comcast challenges the traditional Internet names such as Yahoo (YHOO) and Google (GOOG), by moving into their (proverbial) domain, by offering similar services such as rich email, visual voice mail and video sharing sites.

Comcast has realized that it doesn’t need Internet giants, if it needs to make a billion dollars in advertising, as CEO Brian Roberts claimed recently.

The Philadelphia-based broadband and cable services provider today announced a deal with email software vendor Zimbra, and will offer a customized and fairly sophisticated email client (SmartZone) to all its 12.5 million broadband customers.

The sizzling broadband subscriber growth hasn’t really translated into huge page view growth for Comcast. According to BusinessWeek, over the past 12 months, its traffic actually went down 5 percent. It needed to do something to reverse the trend, and email is a good place to start.

While many consumers choose to ignore the Comcast.net portal, the take-up rate for Comcast email is fairly high. By offering an enhanced email experience, Comcast is betting that it can attract these same consumers to Comcast.net website and keep the page views growing.

Zimbra is one of the many start-ups Comcast is teaming up with to offer enhanced services. Plaxo and a bunch of other companies are part of this effort by Comcast to offer enhanced services, that will be managed by Hewlett-Packard (HWP).

The new email service, while not available till later this year, will be a welcome change for Comcast users. The Zimbra-built email client marries the email and calendaring applications with visual voice mail, and eventually will tie into other Comcast triple play services.

smartzone_home.png

For instance, it is not difficult to imagine that in the near future, you could add to your calendar your desire to watch an on-demand movie, say next Friday. And you can turn your TV on, the movie is ready for you to go. That, however, is in the future – for now email and a voicemail unified messaging center will suffice.

The emergence of triple play – voice, video and data – services will puts broadband service providers at an advantage over pure-play Internet services.

In the mid-1990s, it was the Internet companies like Yahoo that were seen as the one with all the answers, at least as far as carriers were concerned. Yahoo’s partnership with AT&T, and MSN deals with other operators were admissions by access providers that they didn’t have the skills to cater to the Internet needs of the consumers.

Not any more: IBM, HP, and pretty much any company is happy to do all the dirty work for carriers. And start-ups like Zimbra are all too happy to give them the tools to compete with traditional Internet players.

Don’t get me wrong: Comcast and others are not doing this from the goodness of their heart. There is a lot of money at stake here.

There is a growing realization on the part of carriers that companies like Yahoo and Google are the ones who have relationships with customers, and as a result have little or no loyalty to carriers. The prospect of being just a dumb pipe scares the carriers, so they are looking at current partnerships closely. Remember AT&T-Yahoo fracas a few months back?

Carriers have also realized that they need to attract more users to their websites, and earn some advertising dollars. If in the process the consumers get better services – nothing wrong with that.

  1. The “more stuff in a single box” approach has served Comcast well. Tying things into email is a smart move, as well – there are many “optional” parts of various services I use, but I tend to consistently use the ones that become part of (or very close to) my daily workflow. Email is definitely part of that daily workflow.

    The scale of Comcast probably makes them either interesting or threatening to the “big guys” – one obstacle they may need to elegantly overcome is getting people to switch to their Comcast account as their anchor email for those subscribers who are already using GMail, Yahoo Mail, etc. The key will be an easy switching process and excellent functional capability – I’ll be interested to see how this progresses.

    On a related note, I understand HP is running Tripwire on the email servers to keep the up and stable. A good move.

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  2. Paul Kapustka Monday, May 7, 2007

    Reports from Cable Show today say that Comcast is going to demo 100 Mbps download speeds… so not just more stuff but faster, too?

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  3. Deb Banerjee Monday, May 7, 2007

    I avoid using ISP email services. If I want to change ISP’s I dont have to worry about losing my email account. I am curious why people would choose to use ISP hosted email services given gmail, yahoo-mail, msft …

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  4. I agree with Deb, but isn’t that the point?

    When your email accounts, calendar, and address book — essentially all the programs that comprise your online life — are in one place like Comcast, you’ll be less likely to switch to another ISP.

    This makes a lot of good business sense for Comcast, though it seems to make less sense for the consumer, but maybe this is where Plaxo’s address book comes in. Nonetheless, Plaxo can sync your address book and calendar, but it can’t sync your emails.

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  5. i will need a lot a paitience it takes me all day to sign on

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