Cable giant Comcast promises to add 1 million new phone subscribers, in this story. How will they do this?
Comcast and other cable carriers will take over the lead in consumer VoIP in the US because they are aggressively bundling their new phone services to upsell existing customers of TV and Internet access services. Although cable company broadband phone pricing is always higher than competitors like Vonage ($35-$40 pre month versus $20-$25), they offer bundled convenience with discounts bringing down the phone costs to about the same level as Vonage.
Statistics show bundled customers stay put, reducing customer churn by amazing amounts. As the current administration continues to support big business over consumers, regulations will continue to wither and choice will continue to disappear.
Amazingly, short-sighted investors on Wall Street cut Comcast’s stock price because they’ll spend money getting 1 million new phone subscribers this year. Does market share mean nothing anymore?