Comcast this month unveiled its first-ever five-year price guarantee for new Xfinity Internet customers, with pricing starting at $55/mo nationwide for the 400 Mbps tier.
Impact: The decision to move forward with a price guarantee comes as Comcast focuses on providing customers with transparent pricing that provides a set, locked-in price without an annual contract and no penalty for cancelling the service.
The shift to an entry-level nationwide pricing model that also includes the price lock could help Comcast combat broadband subscriber losses as it faces growing competition from fiber and fixed wireless providers. According to Steve Croney, COO of Comcast’s Connectivity and Platforms Division, the new offer addresses consumer “pain points” related to rising costs and transparency around those costs. By offering more value and making its pricing easier to understand with a long-term locked-in price, Comcast aims to reduce complexity and confusion around purchasing Internet or a converged bundle.
Customers who opt for the five-year price lock, which comes with no annual contract and runs through June 23, also receive an Xfinity gateway, unlimited data, and one Xfinity Mobile line free for a year. Extras include Wi-Fi PowerBoost, which gives mobile customers 1 Gbps speeds when connected to Wi-Fi both in and out of the home as well as the company’s ultra-low lag Internet, advanced cybersecurity to fight off malware and other cyberthreats, and parental controls available through the Xfinity app. However, the price lock only applies to the monthly rate and does not exempt customers from fee or tax increases. Comcast also offers an alternative one-year price guarantee with a lower price per month, meaning those who want to lock in their rate will pay a premium to do so. One Touch Intelligence has monitored two different pricing models that vary by market and reflect a monthly bank auto pay discount on eligible Internet tiers.
Industry analysts called the price guarantee a positive development for Comcast, per Fierce Network. Both Craig Moffett of MoffettNathanson and Recon Analytics Principal Roger Entner characterized the new price lock as a step in the right direction and pointed out that cable pricing models that start with deep promo discounts followed by a price jump after a year or two is a major complaint from cable customers. New Street Research analyst Vikash Harlalka added that the new monthly pricing will enable Comcast to be more competitive with fiber and said that with the free mobile line, the offer beats what most converged operators can offer. With economic uncertainly fueled by tariffs and an immigration crackdown, expect aggressive bundled offers to be a major trend in 2025.
