Comcast is finally looking to get competitive, with a bold proposition for internet speeds 50-100% faster than the current average. The nation’s largest internet provider is looking to provide what it calls “gigabit service.” Comcast hopes to roll out the service in its 40-state territory, reaching 55 million customers in the next 2 years.
Notoriously the broadband industry has released only gradual speed increases over time, even when they are technologically capable of providing more.
This unprecedented jump might just mark the end of that business model, and with good reason. The competition is ramping up against the long time heavy hitter, Comcast.
Google has been biting at the heels of their competition, pushing the rest of the market to get serious when it comes to speed. With its release of Google Fiber five years ago in Kansas City, Google has been driving the market.
AT&T has also jumped on board, offering a full 1 Gbps connection in Austin, Texas in 2014.
With the competition mounting, Comcast will initially release the services in Atlanta and Nashville. Cities heavily targeted by both AT&T and Google, both of which are already offering full gigabyte services.
Comcast entering the field will change how providers implement infrastructure. As Comcast will use its pre-existing cable network for the service, giving them a leg up over the competition who has built from scratch all new infrastructure.
What about cost?
Obviously not having to invest in costly infrastructure should help with pricing, but not many details have been released.
Comcast has only revealed that the service will cost less than its GigPro service, which runs $299 a month and offers 2Gbps downloads over an all-fiber network.
Comcast already charges about $80 a month for a 75 megabyte per second connection, already more expensive than Google or AT&T, both of which charge $70.
So one has to wonder if price cutting is in the future, or if they will market a better product, for a slightly larger price.
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