Free advice to "Comcash"

"Comcash?" I have reader Craig to thank for that one.

"Comcash?" I have reader Craig to thank for that one.

I'm not sure a company like Comcast realizes how formidable an attractively priced offer such as Vonage's $24.99 a month Premium Service is when compared to its $39.95 a month for existing broadband Internet subscribers, and $54.95 a month for those who get their high-speed Web service from another provider.

To me, this pricing model seems to overestimate the allure of service bundles. Comcast should realize that the perceived comfort and convenience of getting cable tv, high-speed Internet and VoIP from one provider, on one statement, has limited appeal. The majority of those new to VoIP will want to migrate there on price, not the warm and fuzzy feeling that Comcast - who you already know well - is taking care of you.

No, this pricing model seems to be informed less by an understanding of this fact than by the traditional imperatives of Return on Investment and anticipating per-subscriber revenue that will please a handful of institutional investor portfolio managers.

Let me tell you something, Comcash. Your're playing in, and on, another field now. In the VoIP space, your competitors are limber and lean. They are going to be tougher to crack than you think.

So bite the bullet and be willing to accept a longer-termed return on your VoIP investment, and get your prices down. If your insitutitional investor portfolio managers squirm, then just tell them VoIP build-out ROI might take a little longer.

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
See All
See All