High-speed Internet Packaging and Pricing Strategies: 4th Edition
| This report provides a detailed and up-to-date analysis of the high-speed Internet pricing, bundling and marketing strategies of the top providers, including Comcast, Time Warner Cable, Cox, Cablevision, Charter, Insight, Mediacom, Qwest, AT&T and Verizon. The report ranks each provider by maximum speeds provided and by price points, and includes 18 tables of data and analysis. It will also examine the impact that the emergence of telco fiber-optic services, mainly Verizon FiOS and AT&T U-vrse, are having on cable offerings and strategies.
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TABLE OF CONTENTS
INTRODUCTION
The FiOS Factor
Cable’s response
SPEED AND PRICE RANKINGS
CABLE OPERATOR STRATEGIES
Comcast
--Value-adds
--Advertising, Marketing Opportunities
Time Warner Cable
--Value-adds
Charter
Cox
Cablevision
Other Cable Operators
RBOCs
AT&T
--BellSouth Region
--Legacy AT&T
Qwest
--DSL-only Options
--Price for Life
Verizon
--DSL
--FiOS
--Value-adds
OUTLOOK
TABLE OF FIGURES
Fig. 1: Residential HSD Pricing and Data Rates(Ranked by Max. Downstream Data Rate)
Fig. 2: Residential HSD Pricing and Data Rates (Ranked by Min. Downstream Price per Max. Downstream Data Rate)
Fig. 3: Average Downstream and Upstream Data Rates (kbps)
Fig. 4: Cable High-Speed Data Rates
Fig. 5: Comcast High-speed Internet Options
Fig. 6: Time Warner Cable High-speed Internet Options
Fig. 7: Charter High-speed Internet Options
Fig. 8: Cox High-speed Internet Options
Fig. 9: Cablevision High-speed Internet Options
Fig. 10: Mediacom High-speed Internet Options
Fig. 11: Bright House High-speed Internet Options
Fig. 12: Cable One High-speed Internet Options
Fig. 13: Insight High-speed Internet Options
Fig. 14: RBOC Broadband Price & Speed Comparisons
Fig. 15: Data Rates & Pricing in AT&T, BellSouth Territory
Fig. 16: High-speed Internet Services in BellSouth Region
Fig. 17: AT&T High-Speed Internet Options
Fig. 18: Qwest High-speed Internet Options
Fig. 19: Verizon Broadband Options
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Cable Companies to Face Increasing Pressure to Lower Broadband Prices and Boost Data Rates, Study Concludes
Silver Spring, MD, October 17, 2007 - For years, cable companies boasted the fastest residential broadband speeds, allowing them to resist lowering their prices to match the monthly subscription charges of telephone companies' digital subscriber lines, or DSL. But that pricing stability may be changing, according to a new analysis by market research house Pike & Fischer.
For an expanding number of homes, AT&T and Qwest can better match cable offerings with downstream speeds up to 7 megabits per second (Mbps). And with the launch of its fiber-based FiOS service, Verizon now can exceed cable modem speeds at competitive prices in a growing number of markets. This represents a significant shift in competitive dynamics, P&F concludes in its annual review of high-speed Internet marketing and pricing.
For customers signing a contract, FiOS delivers speeds of 5 to 10 Mbps downstream and 2 Mbps upstream for $40, and 15 to 20 Mbps downstream and 2 to 5 Mbps upstream for $50. Verizon has also begun offering FiOS "triple-play" service bundles priced below $100. This is forcing cable operators in FiOS markets to sharply increase data rates without increasing prices.
Cable companies are also offering discounts for multi-service bundles, as well as short-term promotional prices as low as $20 per month. In response to the latter, Qwest and Verizon have introduced "price for life" offers intended to highlight the short-term nature of cable promotions. These tactics are likely to increase, according to Mitch Shapiro, author of the report and contributing analyst to Pike & Fischer's Broadband Advisory Services.
"As broadband growth comes to rely increasingly on penetrating price-conscious market segments—and especially if the nation enters a serious and prolonged housing slowdown and/or a recession—the market could begin to see more significant downward pressure on prices," Shapiro says.
Pike & Fischer, a BNA company, offers a host of legal and business products covering the telecommunications industry. To request analyst commentary, contact Scott Sleek at 301-562-1530, ext. 291 / ssleek@pf.com
For information about Pike & Fischer's Broadband Advisory Services contact Jonathan Wentworth Ping at 212-576-8741 / jping@pf.com.
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Mitchell Shapiro
Mitchell Shapiro, a Senior Consultant for BAS, has been analyzing media and telecom markets for more than 17 years. He has authored numerous in-depth reports for Pike & Fischer on competitive dynamics, vendor shares and market growth in the broadband industry, including studies on the high-speed Internet pricing, the market for municipal broadband services and strategies for deploying fiber-optic networks. He also regularly tracks the financial performance and broadband initiatives of the regional Bell operating companies.
Mitch previously served as senior vice president at Probe Research, where he was responsible for the company's tracking and forecasts of broadband network, service and CPE markets. He has also served as a senior consultant with Pangrac & Associates, a broadband engineering and strategic consulting firm, and as an analyst with Paul Kagan Associates, where he tracked technology trends and equipment markets in the cable and cellular industries. He holds a B.A. in Economics from the University of Michigan and an M.A. in Telecommunications from Michigan State University.
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