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Comcast Enters Telephone Domain: Cable Company Working Toward Plan for One Bill for 'Triple Play' of Internet, Voice and Television Services

Posted on: Tuesday, 11 April 2006, 09:00 CDT

By Blanca Torres, Contra Costa Times, Walnut Creek, Calif.

Apr. 11--Comcast cable guys can start adding "telephone" to their titles.

The Bay Area's dominant cable company has started offering a new phone service, called Comcast Digital Voice, in selected East Bay cities. The service works just like those provided by AT&T and other telephone companies. The lines connect through phone jacks in the walls and customers can keep their existing telephone numbers.

Comcast's move parallels the telephone industry's foray into offering cable television services. Now companies that used to provide just phone or just cable services are offering the trio of Internet, television and phone service.

"Cable companies want to be one-stop providers," said Bruce McGregor, a Los Angeles-based digital home analyst with Current Analysis. "Consumers want to pay all their services on one bill and if there's a cost savings, consumers are more interested."

The service uses technology called Voice Over Internet Protocol, which allows consumers to make phone calls over broadband networks used for Internet connections.

The service launched Monday in 52 cities in Alameda, Contra Costa, Solano, Napa and Marin counties, said Andrew Johnson, a Comcast spokesman. More cities will be added in the next six months.

Fees start at $39.95 a month for unlimited local and long-distance calls within the United States.

Comcast began providing telephone service late last year in other parts of the United States. The company now has around 1.3 million subscribers and plans to add another 1 million this year.

Comcast expects to offer packages that will include television, Internet and phone services for one monthly rate in about six or seven months, Johnson said.

The "triple-play" packages are already offered in other Comcast markets in the Midwest and on the East Coast for about $99.

"Cable providers have been eager to enter this market to offer their triple-play services," McGregor said. "The problem for cable companies has been that these services are not as price competitive as those of other companies."

Vonage, for example, offers unlimited local and long-distance calls in the United States for $24.99 per month.

McGregor said prices will likely drop as more providers enter the market. AT&T is trying to win approval to offer cable television services in the Bay Area, which would give Comcast a direct competitor.

Also, consumers can expect companies to add wireless or cell phone capabilities to their service packages in the future. Johnson said Comcast, which set up a partnership with telecommunications company Sprint Nextel last year, may start adding wireless phone service in 2007.

"I think it's just an evolution of where we are digitally," McGregor said. "Consumers are seeing that companies are adding services and eventually with the technology available, those services will eventually overlap. One day your caller ID may flash on your television screen."

Blanca Torres covers retail and consumer issues. You can reach Torres at 925-943-8263 or at btorres@cctimes.com.

COMCAST DIGITAL VOICE BASICS:

EAST BAY CITIES

-- Cost starts at $39.95 for unlimited local and domestic long distance calls.

-- Service includes features such as caller ID, call waiting, call forwarding and speed dialing.

-- Consumers can check voicemail through an e-mail service.

-- Service includes 911 capability and location will be identified.

-- Service has backup battery power in case of a power outage.

-- Consumers can transfer existing phone numbers.

-- Customers do not need to have Comcast cable service to get the new phone service.

COMCAST DIGITAL VOICE BASICS:

EAST BAY CITIES

Alamo

Bethel Island

Brentwood

Byron

Clayton

Clyde

Concord

Danville

Diablo

Discovery Bay

Dublin

Knightsen

Lafayette

Livermore

Martinez

Moraga

Oakley

Orinda

Pacheco

Pleasant Hill

Pleasanton

San Ramon

Sunol

-----

Copyright (c) 2006, Contra Costa Times, Walnut Creek, Calif.

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

NASDAQ-NMS:CMCSA, NYSE:T, NYSE:S, LSE:DBLO,

Source: Contra Costa Times (Walnut Creek, Calif.)

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