Google Fiber has created so much hype that it has left Comcast worried, and for the first time it has to compete for business. Later this year or early next year, Fiber will come to Atlanta, so Comcast has been circulating fliers in which it is urging locals not to fall for the hype that the cheap and blisteringly fast Internet service from Google has created.
Comcast’s gigabit service
A few days ago, Comcast touted its new competing service that features a 1 Gbps speed for $70 a month. Commenting on the plan, DSL Reports noted that this is an attempt at price competition given that Atlanta is one of the target markets Google Fiber has selected.
“Comcast tells me that while the $70 option will not feature the company’s usage caps (which are being “trialed” in the Atlanta market) users on the no-contract, $140 plan will face usage caps. They also have the option of paying $35 per month extra to avoid said caps,” said Karl Bode of DSL.
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Comcast is trying to push users into a three-year contract with its heavy-handed play, but its press release fails to mention that. Customers who opt for the non-contract route will end up paying twice as much for the service ($140) and will also be subject to a 300 GB bandwidth cap each month with an overage fee of $10 per 50 GB.
Does Comcast fear Google Fiber?
There are several advantages of opting for Google Fiber over Comcast’s service. Not only is it cheaper but faster as well. It does not lock customers into a 36-month contract like Comcast does. Comcast’s gigabit plan offers upload speeds of only 35Mbps. Customers will be able to get symmetrical speeds only if they opt for Comcast’s “Gigabit Pro” service, which offers 2-gigabit upload/download speeds. The plan is priced at $299.95 a month.
Comcast is afraid of competition, and so it fears Google Fiber. It is for this reason only that it tried to buy Time Warner Cable instead of competing with it. When a company has to face real competition, customers get the option of saying no to “craven cable company shakedowns,” says The Verge. For instance, Comcast recently invented new data caps so as to charge people $30 to get rid of them.