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March 24, 2008

Comcast To Compete With AT&T's Small Biz Bundles

Comcast is the latest communications giant to compete with telecom giant AT&T for services geared to small- and medium-sized businesses.

On Monday, Comcast plans to launch its Business Class Voice, a new product that offers New England businesses voice services, high-speed Internet and cable television for a lump sum, beginning at $100 per month.

AT&T launched its voice and Internet service bundles aimed at small businesses last May with prices ranging between $60 and $90.

Small businesses are becoming increasingly attractive customers to the telecom industry, which already has the infrastructure already in place to serve small businesses.

“These business owners now have the option of choosing Comcast for all of their communications needs where they work,” said Jeff Freyer, vice president of business services for Comcast’s Connecticut-West region.

 

Sweet Spot

“Small businesses are becoming a sweet spot for AT&T,” said Adam Cormier, an AT&T spokesman. “A lot of the products run downstream from large businesses to small businesses.”

Bundled services provide competitive prices and an alternative to traditional phone company services with the convenience of one combined bill.

Such savings on telecommunications costs could be crucial to small business, said Andrew Markowski, director of the Connecticut chapter for the National Federation of Independent Business.

“It’s similar to our position against the business entity tax that $250 is significant to a small business,” Markowski said. “For a small business to save any money — even if it’s just $100 — can be a big deal.”

Markowski said he wasn’t surprised Comcast was targeting the small business market because he recently heard an AT&T radio ad that was directing its pitch to the same customers.

“It resonated with me because more and more companies are going after small businesses,” Markowski said. “It’s a very interesting trend.”

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