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Comcast Keeps Raising Prices, but Customers Have Another Choice

Comcast operates like a monopoly (which it sometimes is). but now there's a new player competing with it nationally.

Comcast (CMCSA) - Get 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 its customers have a choice when it comes to internet service, it's usually an inferior one. 

Some people may opt for phone-company DSL or even satellite internet, but even Starlink internet from Elon Musk's SpaceX does not offer the speed or reliability that comes with wired broadband.

Comcast has a good product -- one that for decades was a legally mandated monopoly in many markets -- and it has a huge edge over competitors. The company built out its infrastructure and customer base with no competition.

Now, even where it has rivals, Comcast holds the incumbent's edge. Switching is not only a pain, it can also be expensive because the company locks its customers into contracts that require large payments if you try to leave early

So, even though some people may be willing to look elsewhere -- especially when they realize that they pay rental fees on a modem equal to the purchase price every 8 to 10 months -- they can't. 

Now, T-Mobile (TMUS) - Get Free Report is wooing Comcast customers with a very aggressive holiday-season offer. 

T-Mobile Lead KL 083122

T-Mobile Moves Into Internet Service

T-Mobile has built its entire business on disruption. 

First, it went after AT&T (T) - Get Free Report and Verizon (VZ) - Get Free Report, targeting their customer-unfriendly practices. The self-dubbed Un-carrier was methodical about getting rid of the things about mobile phones that people hated.

That meant getting rid of overage charges, ending long-term contracts, and offering full pricing transparency. It was a fairly simple strategy -- treat people well and they will tell their friends, which will grow your business -- and it worked well enough to put the company on equal footing with its previously much bigger rivals.

Now, T-Mobile has entered the broadband space, offering 5G home internet in much of the country. Those efforts have slowly been paying off as the company now has two million home-internet customers.

"More than half of T-Mobile's two million home-internet customers come from Big Cable companies like Comcast. And they’re happier now," T-Mobile said in a news release. 

"T-Mobile 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 phone carrier will pay Comcast Xfinity customers as much as $750 to break their Comcast contracts. 

They get unlimited T-Mobile Home and Business Internet for $25 a month. To make the internet switch, they must pay their monthly bill via autopay and must have a qualifying T-Mobile voice line.

“It’s clear Xfinity customers are tired of the BS. They’re hungry for a better option — and now they have one with T-Mobile 5G Internet,” T-Mobile Marketing President Mike Katz said. 

“At a time when Comcast is locking customers into contracts and increasing their costs, the Un-carrier is here to provide people with a new option that’s free from contracts, packed with value and finally giving Big Internet some 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 over two decades, it’s been a leader of what, today, are 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 another price hike going into effect on Dec. 20, with rates increasing 3.8% on average this time. This latest price hike comes just a year after Comcast last raised prices."