Comcast is planning to introduce a new service that will be appealing to households with low income. As per the program, customers can sign up for internet and television services for a period of seven days or thirty days. This plan is surely introduced to attract low-income households to their services. The plan is called “Xfinity Prepaid” services and under this plan, the users need to pay a one-time equipment fee and they get chance to refill the service as and when needed. The best part, there is no limitation on the number of times a user can renew the service.
The Xfinity Prepaid service does not need a credit check or contract. The service will be made available in Illinois, Georgia, Michigan, Indiana, and Florida. Comcast is also planning to extend the services to their complete customer base by the end of 2017. Comcast recently signed an agreement with the no-contract wireless brand Boost Mobile of Sprint, in order to offer prepaid services at 4,400 locations of Boost Mobile with Comcast footprint. However, Comcast has not released the financial details of the arrangement yet.
“We want to create an easy, pay-as-you-go option for people who want more flexibility and predictability when buying our services,” Marcien Jenckes, executive vice president of consumer services at Comcast Cable, said in a statement. Reports show that out of the 20 million US households that do not pay for TV, around 16 million fall short to pass the credit checks to be eligible for the services. This means that the new offering from Comcast will be appealing to such customers, who will otherwise go for over-the-top video services and cable TV alternatives.
This new plan is released when the future of pay TV is uncertain, as users cut cords and go for skinny packages and internet TV services. Experts doubt that if services like this will encourage cord cutting among the users, as they can sign up for the services again for a short period to watch events like NBA. “Certainly that is a possibility, but I don’t think that is our expectation,” said Comcast representative, Steven Restivo. “While the service is primarily geared toward people making tough decisions on a monthly basis about finances, consumers with vacation homes could use the prepaid option to toggle their cable on and off,” he added.