RSSComcast to split 'triple-play' services into HD premium, value tiers
By Jacqueline Emigh | Published December 5, 2007, 9:57 AM
Citing Verizon as his company's principal -- if not only -- real competition going forward, a senior Comcast executive told an investors' conference this morning it's responding to FiOS with a huge investment in higher-definition services.
NEW YORK CITY (BetaNews) - "You don't love issuing press releases like the one we did last night," admitted Comcast co-CFO Michael Angelakis at a UBS financial analysts' conference early this morning. Angelakis was referring to a less-than-pretty picture of Comcast's subscriber growth, which it had to admit was lower than previous estimates.
But his solution appears to be a full-on attack, which will include a $6 billion capital expenditure in vastly improved set-top boxes (STBs). That expenditure will aid in the rollout of two new high-definition "triple play" service packages, splitting the current service into two tiers but conceivably upgrading all of its current voice/data/Internet customers.
A high-definition package will address customers which Angelakis described as having the newest and best video equipment available, and though he didn't say it explicitly, he likely meant 1080p HD displays. Most high-def cable services now broadcast in 720p.
But a second tier of "triple play" service will be rolled out as well, for what he described as more cost-conscious customers.
Both services will be competing head-to-head with what Angelakis singled out as his biggest competition: Verizon, whose FiOS fiberoptic triple and quadruple play services (adding Verizon Wireless) have apparently made significant inroads in metropolitan markets, and may be blamed for Comcast's lower-than-anticipated subscriber growth. This morning, New Yorkers awoke to messages blanketing all media, promoting a big Verizon giveaway: a free 19" HDTV for new FiOS subscribers.
Angelakis seemed a little taken aback when an analyst confronted him with news of the Verizon promotion. "The competition has increased," he said, "and we've got to respond." Then invoking Winston Churchill, he went on, "We will fight in the streets..."
But where Comcast apparently won't fight is in the quadruple-play arena, where Verizon may have an edge. He repeated the company's statement from Monday that it will not be participating in the FCC's upcoming 700 MHz auction, whose major bidders will likely include Verizon Wireless, AT&T, and Google. Yesterday, satellite service provider EchoStar reportedly indicated it will participate in the auction as well.
The co-CFO did not add further details on available service plans or any possible rollout itinerary, and Comcast has yet to issue a formal statement on these new services.
Comcast had expected to gain 6.5 million new subscribers nationwide for 2007, but yesterday had to concede the final tally will be closer to 6 million. Revenue growth forecasts for the year were also sheared, down to 11% from a previous forecast of 12%.
Here in the Chattanooga, TN area.. Comcast is the only serious provider of Inet service. They have the market all to theirselves here and they take full advantage of it. I pay well over 100+ for cable and I net service. I have friends in Dallas, TX that have FIOS and they are getting 20mb U/D speeds, TV and voice service and not breaking $100.
Comcast isn't providing HD service worth a crap. I have a HD TV and I am not getting HD programming worth what I am paying, because when you have a large TV you can see the channels that are low quality; everything starts to artifact.
The voice service they offer should be easier to deploy, but they want to kill you on installation fees and setup; freakin nuts.
Comcast needs some serious competition. I am glad they capped their customer base. And i am also glad that they are being raked over the coals the Bit torrent issues as well. And for a company to turn off service without defining the limits of service (DL limits) is just wrong.
If I had the option I would drop Comcast in a heart beat.
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|I'm in Knoxville, and the picture isn't much prettier (no pun intended).
My lcd tv has an integrated tuner (meaning that both the analog and digital tuners have been combined into one coax input). I split the signal before it enters into my box, to take advantage of PIP, and have found one VERY disturbing fact: The picture quality on both SD and HD (the over-the-air broadcasts) is significantly better through the tuner, than it is through the digital box. The 720p HD channels have a smeared look to them, and the SD channels have horrible artifacts. This is bad enough, but it gets even worse when watching something recorded on the DVR.
My internet service was a nightmare, as well. It took Comcast over 4 months (and over 6 service calls) to finally put an amplifier on my line (the connection would drop at least 2x a day).
I had their phone service for a bit, and it wasn't bad, for what it is...just not really neccesary when you consider the prevelancy of cell phones. The problem is, it seems to have been the cause of the internet issues. They never upgraded any lines when they rolled it out, and the demand it put on the pipes caused a lot of signal degradation.
I've been considering switching to the Verizon/AT&T package, but have been holding out for the FIOS system (as well as the broadband TV package). The costs to start it up are my main points of contention.
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|comcast here, plzz add more HD channels man!! i'll even pay more a month, but damn i would LOVE the option at least!!
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|It would be nice if Verizon or Comcast offered a set top box that supported 1080p resolution since my 24-inch HD monitor (native resolution: 1900x1200) does not properly deinterlace 1080i material (it discards half the vertical resolution).
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|honestly impossible really, unless the box is doing upconverting...most HDTV signals are broadcast in 1080i (the ESPN family of networks is 720p) and I don't see them offering 1080p broadcasts anytime soon....cable providers are struggling with bandwidth and SUPER compression issues as it is with 1080i....
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|True, but why couldn't the cable box include a decent video processor that converts the original 1080i signal into 1080p? This would solve the problem that many low end 1080p monitors have with unnecessarily discarding half of the vertical resolution. Apparently Faroudja video processors are not capable of displaying 1080i content.
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|As a Comcast triple day customer I can say I'm not happy with the current HD line-up, or lack there of. I also get NHL Center Ice (NHL season package) and Comcast offers no games in HD, while Dish Network offers up to 40 a month in HD, no additional cost. If I didn't have a TiVo which doesn't support Satelite, I'd be quickly jumping off the Comcast wagon. I also have FiOS available now in my area, so they will also quickly become an option when their TV lineup in my area soon exceeds Comcast as well and I'm able to get NHL Center Ice from them. Your days in my house are numbered Comcast!!
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|I'd love to have FIOS, but Verizon is picking up shop and trying to dump us on FairPoint Communications which has 0% chance of providing us with FIOS. I'd grab FIOS in a heartbeat.
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|Comcast provides a great service, no question about it, and with high quality. However, they need to get this one very important message loud and clear:
COMCAST: You are WAY overpriced!
No wonder they are losing customers. Have you seen what they are charging lately? It is rediculous. They are far to expensive, especially for their cable TV and internet service. This is exactly why their competition is gaining on them so fast now. They need to lower their prices dramatically, across the board, if they want to have any shot at being competitive and continuing to grow their customer base and market share. Otherwise, it will be an ever accellerating downhill slide for them unfortunately.
Comcast, it is time to wake up, snape out of it and start LISTENING to what your customers are telling you. You AREN'T the only game in town any more and you need to finally realize that and price your products accordingly.
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|I agree completely... they ARE way overpriced.
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|Fios hasn't made it to my area yet (but they have started installing in my county). Comcast has me so ticked off that even if Fios had less channels and cost more I would still switch.
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|I wish there was real competition for Comcast in my area (West Michigan). No Verizon FIOS here, unfortunately. If there were, I'd drop Comcast like a hot potato. They have ZERO customer loyalty from me.
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