Once Again, Google Fiber Is Forcing Incumbent ISPs To Actually Compete
Consumers must really hate Comcast. Back in May, the cable company was rated the worst ISP in the nation with a score of 62 out of 100. Its reputation probably won’t improve nationwide, but at least it’s now making an effort, much like Time Warner Cable, to offer competitive prices and speeds when it’s forced to.
DSLReports recently obtained an internal memo from Comcast saying that the company will start offering cheaper Internet/TV bundles to customers in Provo, Utah. If you recall, Google announced in April that it had bought the city-run fiber network in Provo, and would be offering Google Fiber there shortly. Provo citizens probably won’t be getting Google Fiber for at least a year, but Comcast is already slashing prices to attract customers that may get tired of waiting for Google’s incredibly fast Internet.
In the memo, Comcast never specifically mentions Google Fiber as the cause behind its recent price reductions, but it’s totally due to Google Fiber:
In 2013, a number of new and existing competitors have entered or are expanding in West Division markets. As they enter new markets and expand their product offerings, they generate awareness through more focused public relations and marketing tactics to make a splash and garner attention. Typically, things that are new, different or controversial generate more news coverage than those that are stable and growing.
So, what kind of deal is Comcast offering in hopes that people choose it over Google Fiber? For $120, customers can sign up for the Extreme XFINITY Triple Play Offer which includes XFINITY TV, 105Mbps Internet and XFINITY Voice or XFINITY Home Secure 300. It’s not a bad deal when compared with other incumbent ISPs, but it’s highway robbery when compared to the 1Gbps Internet service you get with Google Fiber for only $70. For $120 a month, you get Google Fiber TV, 1Gbps Internet, a 2TB DVR and a Nexus 7 tablet. Comcast is competing, but it’s probably not enough to sway Provo citizens from the immense value that Google Fiber offers.
Still, Comcast has something to gain from all of this. It’s current promotion started on August 6 and will run through the end of the year. At the moment, Comcast is running unopposed with a decent offer. If it can get the word out, people might just switch over to the new deal. It just has to somehow convince them to stay once Google Fiber moves in.