business

It all started with in-your-face billboards and door-hangers slamming Comcast's deep pockets as tiny US Internet of Minnetonka tried to drum up more customers in Minneapolis, where it runs the Wi-Fi network.

It all ended with TV and Internet giant Comcast refusing to run US Internet's new TV advertisement for its $14.95 a month Internet service.

Comcast refused to air the ad on the grounds that it was for a direct competitor of Comcast's Internet service, which costs $39.95 to $114.95 for non-cable TV subscribers.

The TV ad features Fancy Ray McCloney, head of Minneapolis-based ad agency Chocolate Orchid Productions, as a fast-talking salesman who says: "Why pay $30 to $60 a month when you can get the same quality service for as low as $14.95?" The ad, which McCloney has posted on YouTube (at tinyurl.com/374f3jx), doesn't mention Comcast by name.

"I spent thousands of dollars to get this ad produced, and now Comcast won't run it," said Joe Caldwell, CEO of USI Wireless, the wholly owned subsidiary of US Internet that runs the Minneapolis Wi-Fi network. "I think maybe they're mad at me because I said the CEO of Comcast made too much money."

Caldwell was referring to a different US Internet ad -- a billboard now up in the Twin Cities that says: "Our competitor's CEO made $27 million last year. Ever wonder why you pay so much for Internet?" The fine print on the billboard, difficult to read at street level, identifies the competitor as Comcast.

A similar ad, hung on doorknobs and posted in public bathrooms around town, is more direct, naming Comcast. Another one, also hung from Minneapolis front doors, said: "We at USI Wireless would like to congratulate Qwest & Comcast for both having sports arenas named after them. ... Ever wonder why you pay so much for Internet?"

McCloney said Comcast asked him to make the ad; a Comcast spokesman said he didn't know if that was true.

"They saw the billboards, and they asked if they could get some of that advertising business on Comcast cable," McCloney said. After the ad was produced at a cost of $7,500, Comcast refused to air it, he said.

Chris Ellis, a Philadelphia-based spokesman for Comcast's local advertising operations, said Comcast decides on a case-by-case basis whether to take advertising for services that compete with Comcast.

"We made a decision not to accept business advertising from this company for this particular product," Ellis said.

Steve Alexander • 612-673-4553