Tuesday, September 18, 2007

Comcast to Expand Data Offerings

Comcast, the large U.S. cable provider, is planning to offer a sub 1 Mbps data service as well as a higher speed DOCSIS 3.0 service at speeds in excess of 200 Mbps. The company's current service offers a maximum bandwidth of 8 Mbps or 16 Mbps.

Comcast plans to trial these services before the end of 2007 and to start rolling them out commercially in 2008.

The U.S. cable companies have been losing ground against the telco broadband services. Assuming Comcast prices these new services competitively, these two new services should help it reverse that trend. The telco ADSL service have been priced below the cable modem services. An entry level cable service at a low price (say $10/month) should prove attractive to many users. On the other hand a high speed service at 100 or 200 Mbps should help Comcast against the FiOS FTTP service. The U.S. cable companies will clearly do what they need to to remain competitive with their telco competitors.

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