Dec
6
Earlier this month Sanford Bernstein analyst Craig Moffett lustfully predicted that one of the major U.S. cable operators would implement per-byte overages in 2012. While Time Warner Cable, Cox and Charter are either interested -- or have tried and failed to implement overage charges -- one company that won't be joining the push any time soon is Comcast. Speaking at an investor conference this week, Comcast Cable president Neil Smit said the nation's largest cable operator isn't interested in "nickel and diming" customers at this point:
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...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.
That obviously leaves the door wide open to nickel and diming customers down the road, but Comcast makes it clear users are safe for now. For one thing they compete with Verizon FiOS in more markets than other cable operators. FiOS has yet to implement caps and would use such a Comcast move as marketing fodder. Comcast also was aggressive in deploying DOCSIS 3.0 upgrades and -- when combined with their 250GB cap and de-prioritization systems, makes shifting to such a model completely unnecessary from a network perspective.On the financial front, most operators are imposing overages not because of network congestion or financial necessity, but because they want to cash in on -- or deter -- the use of Internet video while protecting TV revenues. Except with broadband now replacing TV as the anchor product, Comcast doesn't believe that driving broadband customers to uncapped competitors by imposing a complicated new rate hike structure is good business. Comcast may also be well aware that those who've tried to implement overages -- have struggled to meter usage accurately, something that might ultimately invite regulatory attention.
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