Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS: LOCATION SEGMENT

CHOICE 3 COMPONENT: OFFER A CALL

No. SIC Year Notes
1 4899 2003 Cable TV firm Comcast Corp. began offering cable-modem broadband services for $19.95 in three states – California, Illinois and Maryland, a new offensive in the battle for high-speed Internet customers. The main target is phone carrier SBC Communications Inc. Comcast and SBC rank Nos. 1 and 2 in high-speed Internet subscribers, with 4.86 million and 3.13 million respectively. SBC sells its digital subscriber line broadband services in California, Illinois and 11 other states. In mid-September, it started offering a special $26.95 introductory rate. For SBC and Comcast, these low rates last for the first year of service. Most broadband rates for phone and cable companies have been $40 to $50 a month.

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