Comcast Takes Heat for Modem Pricing

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Comcast Corp.'s plan to force cable-modem subscribers who don't buy one of
its video packages to pay an extra $15 monthly is drawing fire from Sen. Barbara
Boxer (D-Calif.), the Consumer Federation of America and the Consumers
Union.

Boxer called Comcast's Internet price scheme "monopolistic" in a letter to
Federal Communications Commission chairman Michael Powell.

Comcast offers discounts on bundles of video and Internet access. In letters
to the Department of Justice and the Federal Trade Commission, the consumer
groups said that practice harms subscribers by "denying them the long-term
benefits of expanded choices and lower prices."

Comcast spokesman Tim Fitzpatrick said bundling is "a standard and
well-established business practice."

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