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Comcast to boost broadband speed; push new video services

Feb 7, 2005 11:02 AM, Transition to Digital e-newsletter

             

With Baby Bell local phone providers making inroads with cheaper but slower DSL service, cable companies are trying to compete with speed rather than price.

Comcast will begin rolling faster broadband service this quarter at no extra cost, CNET reported. The cable operator’s current download speed of up to 3Mb/s will jump to 4Mb/s. Upload rates of 256Kb/s will reach 384Kb/s. Customers of Comcast’s more expensive 4Mb/s service will see a 50 percent increase to 6Mb/s downstream and 768Kb/s upstream.

Speed has been a key differentiator for the nation’s major cable providers. Time Warner Cable said last December that it would raise its basic download speed to 5Mb/s from 3Mb/s. Months earlier, Cox Communications said it would raise its speed limit from 3Mb/s to 4Mb/s. Faster speeds may help justify cable subscriptions that average $45 a month when the Bells sell DSL — which typically clocks in at 1.5Mb/s — for as low as $26.95 a month.

Comcast this year is expected to introduce more of these higher-bandwidth services. Earlier this week, the company said it would launch its own instant messenger service, which will support live video streaming over Web cams.

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