Comcast dropping low-cost phone plan

  • Article by: H.J. Cummins , Star Tribune
  • Updated: September 28, 2007 - 7:13 PM

The company plans to go to a pricier VoIP option next year. The news comes as a surprise to the PUC, which must approve the deal.

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Comcast has notified customers that it's canceling its low-cost phone option early next year, and will offer a single plan whose extra features will make it more expensive for many.

Phone customers have been calling the Minnesota Public Utilities Commission (PUC) to complain about the loss. That has come as a surprise to the commission, because Comcast has yet to file for approval.

Comcast said that it doesn't need to file until 60 days before the planned Jan. 10 change, and that such requests are routinely granted as long as they don't leave customers without other options.

"Some of the customers want us to say, 'Comcast can't do this,' because they don't want to lose their phone service," said Charlotte Brass, of the commission's consumer affairs office. "I expect to hear more as people realize the deadline is coming."

Comcast has been selling two phone plans for almost two years, said David Diers, vice president of advance services. That's when it added a Voice Over Internet Protocol (VoIP) option to the older plan that has been around since 1999, he said.

"With two different products, it's expensive, so we're consolidating and discontinuing the old product," he added.

Besides technical operating differences, the VoIP plan includes unlimited long-distance and new features, such as the ability to check voice-mail messages online, he said. It comes as a standard package for $40 a month for customers who also buy Comcast's Internet and cable TV service. Otherwise, it's $45. Converting customers get a promotional rate of $19.95 for the first 12 months.

The older plan has a basic monthly fee of $25, plus added fees for features such as long-distance or voice mail. Most customers who are choosing to convert were paying at least as much for their old plan as the $40 VoIP fee, according to Comcast.

The move requires Comcast to submit applications to several government agencies, including the state's PUC, and to the Federal Communications Commission (FCC). However, according to Comcast and an FCC spokesman, the applications are automatically granted after 30 days unless there's evidence that the change leaves customers with no reasonable substitute.

Diers defended sending the letter before contacting the PUC, noting that the company was just giving customers extra time to make decisions.

Customers appear to have mixed reactions. Dale Christopherson of Andover likes his new VoIP service. He switched in June, partly because he likes the new features. Besides, he said, the discount offer showed him that "Comcast wanted to keep me as a customer."

But Brian Nelson of Coon Rapids is angry that Comcast is canceling one service and replacing it with a more-expensive option.

"With Comcast, you're talking about something with features I don't need, for more money," he said. "Not a good deal for me."

H.J. Cummins • 612-673-4671

H.J. Cummins • hcummins@startribune.com

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