Comcast Corporation (CMCSA)’s Stream TV Does Not Use Internet

Comcast Corporation (NASDAQ:CMCSA) appears to have put in a place a perfect plan that will attract users to its Stream TV product. The users of the company’s Internet service could not resist the temptation of opting the cable service provider’s streaming video services. That is primarily because the company clarified that the data used for the service would not be taken into consideration for data caps of the subscribers. At a time when most of the Internet service providers are removing the unlimited plans to force subscribers to opt for plans with a data cap, the company’s move could be a boost to the subscribers.

Bandwidth Used Will Not Impact Network Speeds

Comcast Corporation (NASDAQ:CMCSA)’s data cap commences at 300 GB a month while its bandwidth would not impact the network speeds. That is because the company routes its Stream TV data on the bandwidth for which the users were not paying. That will ensure that the Internet speed will not fall when the user watches TV. That is in contrast to the other service providers. For instance, Netflix, Inc. (NASDAQ:NFLX) or Sling TV does not offer any such advantage to their subscribers. That clearly showed that the cable service provider is keen on weaning away its Internet subscribers from subscribing other streaming video service providers.

Comcast Corporation (NASDAQ:CMCSA) unveiled its Stream TV in Boston and Chicago only recently. The company has also clarified to the media that its Stream TV has the capability of streaming service delivered through its cable system. Therefore, there was no need for the Internet and that it would not affect the data usage. The company seemed to have taken advantage of the existing loophole in FCC regulations. Currently, the FCC does not have any specific rule calling for a ban on cable firms from excusing their services from data limitations. However, it has the authority to review any arrangements based on a case-by-case.

IP Cable Service

Following its merger with NBC Universal four years ago, the company is bound by some restrictions and practices. As part of it, it was prohibited from zero-rating. The cable service provider appeared to have found a new way of attracting customers to its Stream TV by terming it as IP cable service, which is delivered from its managed network.

Comcast Corporation (NASDAQ:CMCSA) is also taking pains to explain that its Stream TV has not been delivered through the Internet. However, that depends upon the user’s standpoint. Significantly, the company clarified that the users are not required either special hardware or a cable box to gain access to Stream TV.  The company will charge $10 for every additional 50 GB of usage once the user crosses 300 GB data caps as it was focused on enforcing a bigger trial of moving its users to plans with data caps.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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