CBC News has learned Comcast is giving up its cable business and turning to an alternative to buy dsl Internet and TV services.
In an email to employees Monday, Comcast said it’s shifting its focus to customers buying a new dsl modem, which can be used to stream video or access other services on the internet.
Comcast said in an email that its focus is now to provide customers with the best service possible for their personal and business needs.
“Comcast has decided to offer consumers with a new Internet service that can stream video and connect to other services over the internet using the latest dsl-based equipment.
This new service will be called Dsl Internet for Dummies and is available at participating Comcast locations and online at the following link.
Comcast will also continue to provide the best quality internet service and customer support to our customers,” Comcast said.
Dsl Internet is a product of AT&T, which is the majority owner of DirecTV.
AT&T owns about 70 per cent of Comcast.
Comcast says dsl is more expensive than traditional broadband, but that the company has “more data” to prove it’s worth it.
“The cost of deploying a Dsl modem is higher than what many people are willing to pay, and customers are often unwilling to pay the premium for Dsl,” Comcast wrote.
“While it’s possible to make a profit from Dsl, the cost of building a modem is significantly higher than the cost to install it.”
The cable company said its customers should see a 15-percent price reduction when they sign up for Dlabs.