Cable TV Not Competitive, Congress Told

from the in-case-you-hadn't-noticed dept

At least some folks in Congress are finally getting the message. They’re realizing that following things like the Comcast-AT&T Broadband merger, cable companies are raising rates much faster than competition would allow, suggesting that there isn’t much in the way of competition. In response, the cable companies are saying that it’s all the fault of the cable stations that keep raising their rates. The cable companies also suggest that the trick isn’t forcing them to lower rates, but setting up a system that would let consumers pick which channels they want to get (something that people have been asking for for many years). They say, the reason for high overall rates, is that the cable networks require the cable companies to offer a bunch of their channels in a single bundle to all their customers. This might be a case where both sides are right. Cable companies should let consumers pick which channels they want – and there should also be more pressure to make sure that there’s real competition in the television world.

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Comments on “Cable TV Not Competitive, Congress Told”

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Anonymous Coward says:

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Woe nelly,
Hold on a minute. Before you can talk about channels, you need to talk about districts. Is there any reason I need to use time warner when the guy down the block gets comcast? He’s in one district I’m in another, but it’s the same damn lines. If you are going to get to talking about competition, talk about bringing to cable companies into the free market like the rest of the country. Then we can talk about channels and such.

cabletech says:


Cable tv providers are not just tv providers anymore. They are full service communications companys. Cable tv, internet, telephony, voip, cellular, etc. As far as their competition is concerned, its everywhere. Verizon, DirecTV, Dish network, etc. If your district has TW and your neighbors district has Comcast, they are not on the same lines. Each company has to invest millions of dollars to build the plant in order to service their customers. When two companies are in the same area, its called being overbuilt by another company. Cable companys also have to pay channel providers (hbo) per homes passed, not per customer. If their plant passes 100,000 homes, but they only have 25,000 customers, they still pay a rate for 100,000.

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