Boston Goes After Comcast for Rate Hikes
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Quote:
After a 60 percent hike in basic cable rates over the past three years, Boston's mayor says he's had it with Comcast. Thomas Menino petitioned the FCC on Monday to allow cable regulation in his city for the first time in 10 years.
A study commissioned by the city shows cable rates are substantially higher" in Boston than in surrounding cities where local governments have a say in pricing. The study also cites a lack of competition as a factor, according to a Boston Globe report. Menino told the Globe that Comcast is taking advantage of deregulation these aren't reasonable rates," he said.
The cableco's latest rate hike came in February, raising the average bill by a little more than 3 percent - but that included all customers, many of whom subscribe to HD programming, on-demand movies and other premium services. If you're one of the 15,000 to 20,000 homes that subscribe only to basic services - about 35 channels - your bill is up nearly 20 percent. So it's those who might least be able to afford cable that are taking the biggest hit - a $2.50-per-month increase.
Satellite companies generally don't offer similar packages that allow you to subscribe to such a small number of channels at such a low rate. Comcast does have direct competition from another cable provider - RCN Telecom - but the study commissioned by the city shows that RCN isn't much of factor; the company serves only 15,000 residents in Beantown and would do little to discourage Comcast from raising rates.
Once it saw the FCC filling, Comcast defended its pricing, saying [Our] basic service in Boston continues to be nearly half the cost of any other provider's entry level service. We believe we continue to offer the most affordable options and best values for consumers.''
A study commissioned by the city shows cable rates are substantially higher" in Boston than in surrounding cities where local governments have a say in pricing. The study also cites a lack of competition as a factor, according to a Boston Globe report. Menino told the Globe that Comcast is taking advantage of deregulation these aren't reasonable rates," he said.
The cableco's latest rate hike came in February, raising the average bill by a little more than 3 percent - but that included all customers, many of whom subscribe to HD programming, on-demand movies and other premium services. If you're one of the 15,000 to 20,000 homes that subscribe only to basic services - about 35 channels - your bill is up nearly 20 percent. So it's those who might least be able to afford cable that are taking the biggest hit - a $2.50-per-month increase.
Satellite companies generally don't offer similar packages that allow you to subscribe to such a small number of channels at such a low rate. Comcast does have direct competition from another cable provider - RCN Telecom - but the study commissioned by the city shows that RCN isn't much of factor; the company serves only 15,000 residents in Beantown and would do little to discourage Comcast from raising rates.
Once it saw the FCC filling, Comcast defended its pricing, saying [Our] basic service in Boston continues to be nearly half the cost of any other provider's entry level service. We believe we continue to offer the most affordable options and best values for consumers.''
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