Many cable operators are considering new pricing for broadband services that would link the amount of data their subscribers consume with the amount they pay. But Comcast isn’t one of them, according to execs.
At the UBS Global Media and Communications Conference on Monday, Comcast Cable president Neil Smit and CFO Michael Angelakis implied that such plans probably wouldn’t be good for the company’s growing broadband business.
While the cable industry has suffered from subscriber losses on the video side, it’s seeing increased growth in broadband subscription revenues. That growth is due in part to more consumers coming online, but also to a greater number of subscribers opting for higher-speed data plans.
Comcast, for instance, lost 165,000 video subscribers in the third quarter, but added 261,000 broadband users in the same period. The increase in broadband subs also means the company has seen an increase in double- and triple-play customers: now more than 70 percent of its subscribers pay for two or more bundled services. With that in mind, Comcast believes that changing up its pricing could have a negative effect on its high-speed data subscriber growth.
“Our goal is to grow share and grow ARPU [average revenue per user],” Angelakis said, noting that about 70 percent of U.S. households subscribe to broadband, and 34 percent are Comcast high-speed data subscribers. “We don’t want to disrupt the consumer experience,” he said.
Comcast’s take comes in contrast to some other cable providers, which are considering rolling out usage-based pricing as soon as next year. With video subscriptions on the decline, those companies are looking to broadband to continue increasing revenue. As a result, Sanford Bernstein analyst Craig Moffett said in an interview with Bloomberg last month that he expects at least one cable provider to institute that type of pricing in 2012.
But Comcast sees the approach as antithetical to its subscriber growth plans. Smit was blunt in his assessment of the pricing model: “We don’t want to nickel-and-dime customers at this point,” he said.
Instead, Comcast hopes to upsell subscribers on higher-speed plans. It recently rolled out 100 Mbps broadband services throughout its entire footprint, and is pushing its 25 Mbps Blast!, Extreme 50 and Extreme 105 broadband services with a holiday promotion that offers new subscribers a free wireless gateway. In an interview last month, Cathy Avgiris, SVP and GM of Comcast’s Communications and Data Services told us about 20 percent of its subscribers pay for broadband at speeds of 25 Mbps or more.
While Comcast doesn’t plan to institute usage-based pricing, it does have a broadband cap of 250 GB per month, which the company instituted in 2008. Since then, broadband usage has exploded, especially with the growth of streaming video, but Comcast hasn’t increased its cap. The company claims most customers are still well below their limits, with the median usage being around 6 GB to 8 GB per month. Still, with growing demand for video and other high-bandwidth services, more family members using more devices, and more of Comcast’s customers taking higher-speed plans, it seems more customers are going to bump up against those caps unless the company increases them soon.
Image courtesy of Flickr user LWY.
Comcast: No plans for usage-based broadband pricing http://t.co/3TNKpbjH @amarchugg #news
Comcast: No plans for usage-based broadband pricing http://t.co/r0fc847o @amarchugg #news
Comcast: No plans for usage-based broadband pricing: Many cable operators are considering new pricing for broadb… http://t.co/raUmknxJ
Comcast: No plans for usage-based broadband pricing: Many cable operators are considering new pricing for broadb… http://t.co/w9J4xUsd
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Comcast: No plans for usage-based broadband pricing http://t.co/3MFcl2Bb
Comcast: No plans for usage-based broadband pricing: Many cable operators are considering new pricing for broadb… http://t.co/iWTxPGou
Comcast: No plans for usage-based broadband pricing: Many cable operators are considering new pricing for broadb… http://t.co/mGZDwkYh
Comcast: No plans for usage-based broadband pricing: Many cable operators are considering new pricing for broadb… http://t.co/Sh9KD4dO
Comcast: No plans for usage-based broadband pricing: Many cable operators are considering new pricing for broadb… http://t.co/wJ9Cmxya
Comcast: No plans for usage-based broadband pricing: Many cable operators are considering new pricing for broadb… http://t.co/Yh6KJmAz
Comcast: No plans for usage-based broadband pricing http://t.co/2zX1dEbe
Comcast: No plans for usage-based broadband pricing http://t.co/K9WWPt5u
Comcast: No plans for usage-based broadband pricing http://t.co/WwvewOEN
Comcast: No plans for usage-based broadband pricing http://t.co/YQhAne1C
Comcast: No plans for usage-based broadband pricing http://t.co/WQIkekIE
Comcast: No plans for usage-based broadband pricing http://t.co/HZOVfZrw
Comcast: No plans for usage-based broadband pricing http://t.co/nJ0JWInr
Comcast: No plans for usage-based broadband pricing http://t.co/ymaZKEhp
Comcast: No plans for usage-based broadband pricing http://t.co/SfoshD41
Comcast: No plans for usage-based broadband pricing http://t.co/RMjRFLdX
Comcast: No plans for usage-based broadband pricing http://t.co/S8wHMEpM
RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/K9WWPt5u
Comcast: No plans for usage-based broadband pricing http://t.co/acuQGa5k
Comcast execs say they have no plans for usage-based broadband pricing http://t.co/7YTtOUmJ
Thank god RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/37vxgtg3
gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/wJnpX60r
RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/qfnyMpjO
RT @ryanlawler: Comcast execs say they have no plans for usage-based broadband pricing http://t.co/7YTtOUmJ
RT @ryanlawler: Comcast execs say they have no plans for usage-based broadband pricing http://t.co/GNKqVdVm
RT @TedatACA: RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/qfnyMpjO
Comcast: No plans for usage-based broadband pricing http://t.co/mMA89LYk
Comcast: No plans for usage-based broadband pricing http://t.co/A4tvnN9M
Thank God RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/L7WQSYoX”
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[DocDocc] Comcast: No plans for usage-based broadband pricing http://t.co/BGQJnJVz via gigaOM
RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/x3ON660x
Comcast: No plans for usage-based broadband pricing http://t.co/upqTrZYv
Comcast: No plans for usage-based broadband pricing http://t.co/aboSDIRD via Ryan Lawler
RT @NewTeeVee: Comcast: No plans for usage-based broadband pricing http://t.co/YQhAne1C
Comcast: No plans for usage-based broadband pricing http://t.co/RKZ5rG07
RT @gigaom Comcast: No plans for usage-based broadband pricing http://t.co/STQsB3bS
RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/vyxX0ROk
Comcast: No plans for usage-based broadband pricing http://t.co/wCM1EM1q
Comcast: No plans for usage-based broadband pricing http://t.co/GZPZcw1w
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Comcast: No plans for usage-based broadband pricing http://t.co/6W08cRV4 Via @gigaom
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RT @gigaOM: Comcast: No plans for usage-based broadband pricing http://t.co/Voken3Yj
@earth2tech: Comcast: No plans for usage-based broadband pricing http://t.co/pD01Lhe6
NewTeeVee: Comcast: No plans for usage-based broadband pricing http://t.co/ubrIMJay
Comcast: No plans for usage-based broadband pricing http://t.co/9ZOyxLxI
Comcast: No plans for usage-based broadband pricing http://t.co/MSoSdXwE
RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/K9WWPt5u
Comcast: No plans for usage-based broadband pricing http://t.co/gotQ5u8C
[203] Comcast: No plans for usage-based broadband pricing
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#tech #news Comcast: No plans for usage-based broadband pricing http://t.co/zG3NK5gP
Comcast: No plans for usage-based broadband pricing http://t.co/bZQ7Yryx
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Comcast: No plans for usage-based broadband pricing http://t.co/F74zwhOz
Comcast: No plans for usage-based broadband pricing http://t.co/tLlTjRMH
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Comcast: No plans for usage-based broadband pricing http://t.co/XnGN6NQi (via @gigaom)
Comcast: No plans for usage-based broadband pricing http://t.co/X4lc1mGD
Comcast: No plans for usage-based broadband pricing http://t.co/FSbztvX3
Comcast: No plans for usage-based broadband pricing http://t.co/FSbztvX3
RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/K9WWPt5u
Comcast: No plans for usage-based broadband pricing (@ryanlawler / GigaOM) http://t.co/vc9HTLGf http://t.co/yBKh93LZ
#Comcast: No plans for usage-based broadband pricing; focus on up-sell to higher speed plans @gigaom http://t.co/gmRfgGp4
“@Techmeme: Comcast: No plans for usage-based broadband pricing (@ryanlawler / GigaOM) http://t.co/bQdBSICA http://t.co/8gFtzCyK”
Comcast: No plans for usage-based broadband pricing — GigaOm http://t.co/XU52YN1M $CMCSA
RT @JeremyKissel Comcast: No plans for usage-based broadband pricing — GigaOm http://t.co/ofKtWjD5 $CMCSA
RT @JeremyKissel Comcast: No plans for usage-based broadband pricing — GigaOm http://t.co/ut71dqVk $CMCSA
RT @Techmeme: Comcast: No plans for usage-based broadband pricing (@ryanlawler / GigaOM) http://t.co/vc9HTLGf http://t.co/yBKh93LZ
Comcast: No plans for usage-based broadband pricing http://t.co/r1a1gTbI
Comcast: No plans for usage-based broadband pricing http://t.co/JCJHY3Z5
Interesting to see that having started the Net Neutrality and pricing cap discussion by implementing polices that were limiting the customer, Comcast has decided to distance themselves from their old stance.
Hopefully never! RT“@MediaReDEF: Comcast: No plans for usage-based broadband pricing http://t.co/Uj93xFIB /via @MediaReDEF”
RT @gigaom: Comcast: No plans for usage-based broadband pricing http://t.co/m3D24R4r
Comcast: No plans for usage-based pricing http://t.co/3g2fDGvk
Generalissimo Francisco Franco is still dead –> Comcast: No plans for usage-based broadband pricing http://t.co/mdMHBSjS @GigaOM
Comcast: No plans for usage-based broadband pricing unlike cable rivals http://t.co/ULVlBg8n
Comcast: No plans for usage-based broadband pricing http://t.co/mXQnIWbG
Key quote Smit “…at this point” |Comcast: No plans for usage-based pricing http://t.co/2auf480Q
Comcast: No plans for usage-based broadband pricing ~ http://t.co/HWcNJZ5B
#Comcast: No plans for usage-based broadband pricing http://t.co/HQWfB2hd
RT @TheCalixNetwork: Comcast: No plans for usage-based broadband pricing http://t.co/mXQnIWbG
Comcast: No plans for usage-based broadband pricing http://t.co/AEKB7HTq
Comcast execs say no plans to charge broadband subscribers based on bandwidth use. http://t.co/dwzQFyZC
Interesting article – Comcast: No plans for usage-based broadband pricing http://t.co/pAYkY615 via @gigaom
RT @NCTACable: Interesting article – Comcast: No plans for usage-based broadband pricing http://t.co/q3m8hk0V via @gigaom #ubb
RT @NCTACable: Interesting article – Comcast: No plans for usage-based broadband pricing http://t.co/pAYkY615 via @gigaom
RT @NCTACable: Interesting article – Comcast: No plans for usage-based broadband pricing http://t.co/pAYkY615 via @gigaom
Comcast: No plans for usage-based broadband pricing http://t.co/tZVQbBXT
Makes one wonder further about congestion.Comcast taking SJR and Telus path (vs ‘nickel and diming’ at others) — http://t.co/ThqRVnJF #ubb
Comcast: No plans for usage-based broadband pricing — Broadband News and Analysis http://t.co/pXsVZDAy
Comcast to entice subscribers with faster broadband packages than nickel & dime customers with usage-based charges: http://t.co/pHxTws9v
RT @iptvtwit: #Comcast: No plans for usage-based broadband pricing http://t.co/HQWfB2hd
This is the same company that cuts people off if they go over the cap. (AT&T by contrast just charges more money — $10 per 50GB.) Before they could even implement usage-based pricing, they’d have to be able to figure out a way to stop cancelling their highest-use customers…. Which obviously they either cannot or choose not to. Very very hard to take them seriously on this topic.
Comcast: No plans for usage-based broadband pricing — http://t.co/wTmxSMxT
Comcast: No plans for usage-based broadband pricing http://t.co/31vq1c4p
Comcast: No plans for usage-based broadband pricing http://t.co/F9dNpyFb
RT @patricknorton: Comcast: No plans for usage-based broadband pricing http://t.co/F9dNpyFb
RT @patricknorton: Comcast: No plans for usage-based broadband pricing http://t.co/F9dNpyFb
I find it funny that they offer the new faster “25 Mbps Blast!, Extreme 50 and Extreme 105 broadband services” and yet for those people paying for the 14MB services, they only ever offer 6-7MB streaming… They make up the other half by using proxy servers that only work when downloading single files of large sizes (50+ MB)
RT @patricknorton: Comcast: No plans for usage-based broadband pricing http://t.co/F9dNpyFb