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Comcast Claims New 300GB Cap is Getting Neutral-Slightly Positive Reaction from Subscribers

Phillip Dampier October 30, 2013 Comcast/Xfinity, Internet Overcharging, Wireless Broadband 1 Comment
Comcast's Wireless Gateway is part of the company's plans to further monetize broadband.

Comcast’s Wireless Gateway is part of the company’s plans to further monetize broadband.

Comcast wants investors to believe customers slightly prefer losing access to unlimited broadband in return for a 300GB usage cap and $10 overlimit fees.

Neil Smit, president and CEO of Comcast Cable Communications this morning told Wall Street analysts Comcast plans to further monetize its broadband product after testing usage caps, consumption billing, and collecting increased in-home Wi-Fi fees collected from a growing number of customers with an XFINITY Wireless Gateway.

Phil Cusick from JPMorgan asked Smit about how broadband tiering trials now underway primarily in southern states were going for Comcast.

“We have a number of trials in place in markets,” Smit responded. “We’re testing different types of usage-based pricing offerings. Thus far the consumer response has been neutral to slightly positive. We’ll continue to monitor it.”

Customers in the affected areas tell Stop the Cap! they have never been asked what they think about Comcast’s usage caps and consumption billing, so they are unsure how Smit can draw conclusions about customer preference.

“I’m canceling Nov. 1 when the caps arrive in South Carolina,” says Dennis Johnson. “I’m heading to U-verse because AT&T isn’t enforcing any caps here. I plan to tell Comcast why they lost me, but it sounds like the company really isn’t interested in what customers think.”

Every research study done on broadband usage caps show customers loathe them and up to 50% are prepared to switch providers if they can find a competitor providing comparable service.

xfinitylogoComcast is also moving forward with plans to share your in-home Wi-Fi with other customers, configuring company-supplied gateways to offer a second, open access Wi-Fi channel. Comcast currently charges customers $7 a month for the XFINITY Wireless Gateway, combining a DOCSIS 3 cable modem, a telephone eMTA, and a wireless router.

Despite the fact Comcast customers regularly complain about the poor Wi-Fi range of the XFINITY Wireless Gateway and the monthly rental fee, Smit believes they are key to further monetizing broadband.

“We’ve rolled out about six million Gateway devices which increased the in-home Wi-Fi fees and we think there’s going to be more people hanging more devices off of their Wi-Fi,” said Smit.

The more devices, the higher the usage. The higher the usage, the closer customers get to exceeding their cap and charged overlimit fees.

Currently there is 1 comment on this Article:

  1. Ryan Brodnax says:

    This pisses me off in ways that you can’t even imagine. First of all the company website says there is no limitations on usage at this time. I watch alot of Netflix and have exceeded my cap in under 2 weeks a couple of times. I didn’t sign a 2-year contract for “internet by the bottle”. I signed up for unlimited cable internet to my home. These companies don’t own the internet. It doesn’t cost them any more or any less depending on how much you use. What gives them the right to tell me how much internet I can have?

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  • Joe V: These ISP executives still don't get it that nearly all customers DO NOT want usage-based billing on last mile wireline. AT&T, Comcast, Centur...
  • Timothy James: Democratic Republic, ostensibly. The entire purpose of the FCC is to define the standards by which entities may and may not conduct electronic communi...
  • Scott: I would 100% recommend my ISP Google Fiber....
  • ryan gomez: Helpful piece . For what it's worth , people a a form , my boss used a sample document here http://goo.gl/VJYqp6....
  • Kyle: We never have lived in a Democracy. We live in a Republic. The federal government is supposed to protect individual rights defined in the Bill of Righ...
  • Timothy James: Well, it's a really dumb endgame, since the country will just end up like pre-1980s Africa. I'm not sure whether the Republicans have a plan beyond "c...
  • Timothy James: By that logic, the FCC shouldn't exist, because state and local laws conflict with federal laws by their very nature. As a federal institution they ne...
  • Timothy James: This move preempts any formal legislation from the FCC, allowing Comcast to lower the cap at their leisure. Meanwhile Republicans battle to strip the ...
  • Ava Cueto: Greetings Eufemia Deemer, my partner filled out a blank OPM OF-306 example here http://goo.gl/QmM7Ni...
  • Eufemia Deemer: Savvy comments . I am thankful for the information ! Does anyone know if my company might be able to find a fillable OPM OF-306 document to edit ?...
  • Jorge Schuldt: Savvy ideas - Incidentally if you want a a form , my boss encountered a blank form here http://goo.gl/J4D1Oz....
  • Paul Houle: Wow. On a bad day I wonder if this is a key part of the endgame of the Republican party. They see a minority-majority US coming so they try to s...

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