Comcast Gigabit Twice as Expensive in non Google Fiber Markets

Comcast this week once again highlighted how incumbent carriers charge dramatically more money in markets where there's less competition. Comcast recently began trials of its new DOCSIS 3.1-based gigabit cable broadband service, launching first in limited portions of Atlanta and Nashville. In both of these markets, users have the option of paying $70 per month for 1 Gbps down, 35 Mbps up service without usage caps -- but only if they sign up for a three year contract. Refuse the contract, and your price point doubles to $140 per month.

It's Comcast's way of trying to lock down customers into long-term contracts ahead of expected Google Fiber launches in those markets.

Google Fiber's already available in select Atlanta apartments as the company gets to work digging up streets. Google Fiber is also expected sometime in the next few years in Nashville, provided the company can get around AT&T and Comcast's opposition of its utility pole reform plans.

But Google Fiber in Chicago for the moment remains little more than a glint in the search giant's eye.

This week Comcast launched its gigabit service in parts of Chicago. And without the more pressing threat of actual competition, Comcast appears to have eliminated the $70 option completely -- its press release not even mentioning this was an option in previous gigabit cable launch markets.

Again, that's Comcast charging twice as much money for the same service simply based on the assumed threat of real, looming competition.

Note this isn't unique: AT&T charges as much as $50 more for its gigabit service depending on whether not Google Fiber or other competition is present in the market. AT&T also charges users additional fees if they want to protect their own privacy, an idea Comcast threw its support behind last week.

Users in our forums say the $70 option shows up via Comcast's website for Chicago residents, they just can't pick the cheaper option once they plug in their address. I asked Comcast to confirm that the company was charging twice as much for service in markets less likely to see Google Fiber anytime soon, and the company didn't respond as of the time of this posting. The company did tell The Consumerist it was just "testing" different price points.

“As these are advanced consumer trials, we are testing different prices and promotions in different markets," says the company.

Comcast also claims that its attempt to impose caps and overage fees on less competitive markets is also an ongoing "trial." However, what's generally tested isn't what price point works for consumers, but what Comcast can get away with before people start yelling.

The hype surrounding gigabit speeds was already overshadowing the problems with a lack of competition and soaring broadband prices, and early deployment of gigabit speeds by the likes of AT&T and Comcast appear only to emphasize this. We'll see if this pattern at Comcast continues as the company pushes gigabit service into Detroit and Miami later this year (neither Google Fiber markets), and into other Comcast markets in 2017.

: Comcast now says that a $70 promotional price is among the offers the company is testing in Chicago; it requires three year contract, but comes with unlimited data plan for no additional fee. This doesn't really explain why the press release omits the $70 option entirely, why Comcast had been telling some press outlets originally that the option wasn't available , why the option appears to be hidden, or why some of our users who can actually find the option say they aren't yet able to order it online.