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Comcast’s 2-Year “Guaranteed Rate” Increases

There is a change in the way “triple plays” for TV, Internet, and phone service are being marketed by major cable companies. Advertised promotions used to be limited to six months or a year at the most. Now many of them are for two years. This can be good or bad, depending on the details (which of course are not always immediately obvious).

Comcast/Xfinity is currently running a TV commercial touting a “guaranteed rate” (in large type) of $99 a month. The announcer even says:

“We’ll guarantee your rate for two years.”

One might come away with the impression that the $99 rate is guaranteed for two years, but that is not so.

*MOUSE PRINT:

In surprisingly large type, but much smaller than the $99 rate, Comcast discloses that the rate  jumps up $16 a month in the second year. Does that disclosure really overcome the other representations in the ad about the $99 price and the oral promise guaranteeing the rate — not “rates” — for two years?

It is unclear whether one would be allowed to cancel the deal after the first year, or if the customer is bound to a two year contract (and possible early termination fees).

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7 thoughts on “Comcast’s 2-Year “Guaranteed Rate” Increases”

  1. I’ll give Comcast credit for honesty in this ad. Most similar deals have a retired tobacco auctioneer saying “priceguaranteedonlyforthefirstyear$229.95aweekafterthatwitha$400earlyterminationfee” at such a reduced volume you need to have your ear glues to the TV speaker to hear it at all.

  2. The rate jump is not written in mouse print and clearly spells out the second year of service. I don’t find the ad deceptive at all.

    Even though no infomation is supplied for the length of the contract or early termination fees, I would assume this disclosure will be given out during the phone call.

  3. You can probably “guarantee” that there’s a 2 year contract involved. Corporations don’t give out anything with one hand that they’re not taking back with the other.

  4. I’ve had a $99 bundle with Comacast for years – or ever since Verizon entered the market. Once I was on a 2 year contract and when that was about to expire I called them up and requested a continuation which I get without a contract.Been running on that for a few years. Amazing what competition will do.

  5. @Lana – I personally don’t believe any consumer communications company is “giving out” anything at $99/mo these days. The incremental cost per each additional customer is so small.

    I recently switched to Comcast and was informed over the phone about the 2nd year guarantee. Early termination fees apply for the first 12 months only and that completes the contract. At that point the customer is free to do whatever – with the ‘guaranteed’ 2nd year rate being one option.

  6. Another catch is in the finer print under the 1-800 phone number. The $99/114 rate does NOT include equipment rental, which in my Time-Warner case is about $9/month/box. Since it says the price includes the monthly service charge, am I assuming that the price would include the $10/month/box charge for the DVR service? In a previous life, I was a “straight man” for a stand-up comedian.

    I can almost bet there are ETF’s involved. I get offers from T-W to guarantee my rate for two years, but when you read the really fine print, it mentions a $250 ETF.

  7. also does NOT include outlet fess (not all comcast systems have them) and some systems even have Cable card HD fees as well.

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