Comcast Price Increase

Another Comcast price increase will be hitting subscribers in October, making satellite TV options like Dish Network and DIRECTV look a bit more attractive.

News of the latest price increase began to leak last week as current Comcast customers began to see notices of the hike in the mail. Prices vary a bit in in each area Comcast serves, so it may affect some customers more than others. Comcast is not raising prices on broadband service, but is raising the price on leased modems.

Currently $3 per month, a 66% increase of $2 will hit those who have not purchased their own modem. Comcast high speed internet customers may want to consider buying their own cable modem, which can be had for under $100 on Amazon or for even less on Ebay. There will also be a $2 increase for the Comcast Digital Voice modem, though customers who have both services through one modem will only see one increase.

So how much more will Comcast customers have to pay? In Washington state, the Comcast Digital starter package will jump $1.70 a month from $55.75 to $57.45. This is the entry level digital cable package from Comcast, and is required if customers want advanced features like On-demand programming. In California, customers will see a greater increase for the digital starter package.

Current pricing in the Sacramento area for Comcast Digital cable is $55.35, and that will go up $3.64 to $58.99 per month. Comcast customers in Marin, California which is north of the Bay area will experience a 3.4% increase on the same package, which jumps from $59.95 to $61.99. So will the Comcast price hike drive customers out the door?

Its hard to see that happening. While customers often complain about high cable TV prices, more often than not the hassle of switching providers outweighs the price being paid. Oftentimes, customers are driven to switch based on content available through other companies, a huge factor for DIRECTV with the NFL Sunday Ticket package. Comcast could face increasing defections to Verizon Fios and AT&T U-verse though, as both of these companies are continuing to expand their networks in order to offer their own triple-play bundles.

Satellite TV companies generally match the price hikes that Comcast and other cable companies put through to their customers. Comcast raised rates a bit earlier than they have in the past. Dish Network prices went up in February 2009, while DIRECTV prices last went up in April.