Business News
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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