Are you tired of groan-worthy internet news yet? Unfortunately, it doesn’t seem like the hot topic will have a positive spin anytime soon. For example, Comcast is now raising the cost of its standalone broadband internet service plan. Please, let’s all act surprised.
Comcast’s 25Mbps internet package (the minimum speed required by the FCC to be defined as broadband internet) will soon cost about $75 a month in some markets.
That’s a $10 increase since the beginning of 2017 and another $5 more after an increase made a few months ago, according to research conducted by Stop the Cap (a group dedicated to holding broadband internet companies accountable for their activities).
This particular price increase only impacts Comcast’s Performance Internet service. However, if you have other standalone or bundled services with Comcast, keep an eye on your bill going forward. Price hikes are expected to continue as cable TV companies try to keep up with a rapidly-changing home entertainment industry.
Consumers are ditching traditional cable left and right in favor of streaming services. Meanwhile, competition in the home internet market dwindles. As a result, cable companies are doing what they can to keep profits up via a resource Americans still love: Home internet. A $5 or $10 price increase isn’t enough to make consumers to say sayonara to home internet access – and cable companies know this.
So for now, cable companies will slowly increase broadband service costs, much to Wall Street’s satisfaction. Analysts have argued for years that broadband internet is “too cheap” for how little competition the market actually has. In fact, they’ve recommend providers raise prices to a hefty $90 a month to maximize potential revenue on a service that is essential utility for many.
Keep an eye on your internet bill, folks. There are more changes to come.