by Comcast (CMCS extension) – Get a free report prices move in only one direction. Every year, more or less, they always go up.
That’s because the cable and internet giant largely has a captive audience. If your customers have a choice when it comes to Internet service, it’s usually less.
Some people might opt for phone company ADSL or even satellite Internet, but even Elon Musk’s SpaceX’s Starlink Internet doesn’t offer the speed or reliability that comes with wired broadband.
Comcast has a good product – one that has been a legally mandated monopoly in many markets for decades – and it has a huge lead over its competitors. The company has built its infrastructure and customer base without competition.
Now, even where it has rivals, Comcast holds the incumbent edge. Switching is not only a hassle, it can also be expensive because the company locks its customers into contracts that require high payouts if they try to exit early
So while some people might be willing to look elsewhere, especially when they realize they’re paying rental fees on a modem equal to the purchase price every 8-10 months, they can’t.
Now, TMobile (TMU) – Get a free report is wooing Comcast customers with a very aggressive Christmas offer.
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T-Mobile enters Internet service
T-Mobile has built its entire business on disruption.
First, it went after AT&T (T) – Get a free report and Verzon (VZ) – Get a free report, targeting their customer-unfriendly practices. The self-proclaimed Un-carrier was methodical about getting rid of the stuff on cell phones that people hated.
This meant eliminating overcharges, terminating long-term contracts and offering full price transparency. It was a simple enough strategy — treat people well and they’ll tell their friends, which will grow your business — and it worked well enough to put the company on equal footing with its previously much larger rivals.
Now, T-Mobile has entered the broadband space, offering 5G home internet across large parts of the country. These efforts are slowly paying off as the company now has two million home Internet customers.
“More than half of T-Mobile’s two million home Internet customers are from Big Cable companies like Comcast. And now they’re happier,” T-Mobile said in a news release.
“T-Mobile’s home Internet customers give the service a Net Promoter Score – a common measure of customer satisfaction – higher than fiber providers and 30 points higher than cable and other Internet services.”
T-Mobile gets aggressive
Now, for the holiday season, T-Mobile has launched “Make Xfinity Your Ex,” a program through which the carrier will pay Comcast Xfinity customers up to $750 to break their Comcast contracts.
They get unlimited T-Mobile Home and Business Internet for $25 a month. To make the switch to the Internet, they must pay their monthly bill via automatic payment and must have an eligible T-Mobile voice line.
“It is clear that Xfinity customers are tired of the BS. They are hungry for a better option and now they have one with T-Mobile 5G Internet,” said Mike Katz, president of marketing for T-Mobile.
“At a time when Comcast is locking customers into contracts and driving up their costs, Un-carrier is here to provide people with a new contract-free option that is rich in value and finally gives the Big Internet real competition.”
T-Mobile has targeted Comcast at a time when it’s raising prices.
“Comcast Xfinity is the poster child for what happens without competition,” T-Mobile said.
“For more than two decades, he has been a leader in what are, today, the two most hated industries in America: cable TV and Internet service providers.
And as if things couldn’t get much worse, their internet customers are facing yet another price hike that goes into effect December 20, with rates rising an average of 3.8% this time around. pricing comes just one year after Comcast’s last price hike.”
