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Comcast Raises Rates in Huntsville in Time for Back-to-School

2008-07-28 09:50:00

Comcast Raises Rates in Huntsville in Time for Back-to-School

TV4US Says Greater Competition Would End Excessive Rate Increases and Bring

                            New Jobs, Investment



    HUNTSVILLE, Ala., July 28 /EMWNews/ -- Comcast has a surprise

back-to-school gift for Huntsville families -- a larger cable bill.

Beginning August 1, just as back-to-school expenses begin to pile up,

customers will be charged as much as $2.75 a month more for basic cable

service and as much as $4.00 more for digital packages.



    Cable rates continue to rise unabated in Huntsville, with Comcast's

rates soaring 89.5 percent since 2001.



    The most recent rate hike comes at a time when Huntsville families,

already hurting from higher gasoline prices and an uncertain economy, are

facing the extra expense of sending their kids back to school. A National

Retail Federation (NRF) survey predicts that families of school age

children will spend an average of $594.24 per family for back-to-school

items, such as electronics, clothing and school supplies.



    "There is a simple solution to skyrocketing cable prices - more

competition," said Lizanne Sadlier, Executive Director of TV4US. "Without

additional competition, Comcast can charge whatever it wants and consumers

will have little recourse. But, when cable companies compete for customers,

consumers enjoy lower prices, greater programming choices and better

customer service."



    States that have real cable competition among comparable providers have

begun to experience cost savings. Bank of America Equity Research in 2006

found that in areas where cable companies have to compete, prices for video

service are between 28 percent and 42 percent lower than they are in areas

without competition.



    In addition to putting an end to soaring cable rates, greater

competition would lead to significant local investment and new jobs in

Huntsville. Less than one year after Illinois passed legislation to

encourage cable competition, one new provider hired 1,400 employees and

started on a plan to invest $1.3 billion to build out wirelines and support

the delivery of its services in the state.



    Twenty state legislatures across the nation have brought competition to

their states through video franchise reform, including neighboring Georgia

and Tennessee. In Alabama, companies have the ability to provide additional

services along their existing infrastructure, but some municipalities are

trying to restrict the expanding innovation and investment.



    Many municipalities across the state have cleared the way for

competition and will soon be reaping the benefits, including greater

consumer choice, better prices, improved service, new jobs and investment.

By joining those municipalities, Huntsville could start the school year off

right and earn straight A's from Hunstville's TV viewers.



    TV4US is a non-profit organization that includes among its members a

diversified group of corporations, non-profit and non-governmental

organizations -- representing hundreds of thousands of consumers across the

country. We are a non-profit, grassroots coalition advocating on behalf of

customers who deserve competitive alternatives, leading to lower cable

bills and improved service. We believe that competition will bring more

choices, better customer service, and advances in technology for Alabama

consumers.





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