Thursday, May 26, 2011

Comcast on UBB: "we're not adopting it .. we are watching it"

During his presentation at Barclays Capital Global Communications, Media, and Technology Conference, Mike Angelakis (picture), CFO, Comcast Corporation was asked by James Ratcliffe, Analyst, Barclays Capital on Usage based Billing (or "metered billing"):

"How do you think about usage-based pricing around data? You folks have had a very high cap in bytes -- 200 gigabytes for a couple, I guess close to three years now, sort of targeting the small portion of the customers who are very high load on the network. I mean how do you think about that versus potentially more tiering --?"

The answer was:

"You know, usage-based pricing -- I don't think we've --first of all be clear, we're not adopting it. Obviously, we are watching it. We're very comfortable with our structure. Our goal is to really capture share and increase ARPU. And I think that -- and make sure that we have the best product that's going in the house or in the business. And I think that we absolutely do, whether it's in the business or in the house. So we're pretty comfortable with the model. We've deployed the instrumentation that people need to sort of gauge how much they're using, and if we ever wanted to go to usage-based billing or consumption-based billing, we could possibly do that. I don't know why we would disrupt a pretty good run we're having right now. We feel really good about our capacity and our capability to continue to manage additional bandwidth needs. So I feel pretty good"

Full transcript - here.

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