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Cable Technology Feature Article

October 15, 2008

Comcast Plans to Rise Cable Rates in Tennessee

By Raju Shanbhag, TMCnet Contributor

Comcast is planning to raise the rates for its cable services in Tennessee. TV4US (News - Alert), a non-profit organization that includes among its members a diversified group of corporations, non-profit and non-governmental organizations, states that this is being done in less than six months after the Tennessee legislature passed into law the Competitive Cable and Video Services Act, which opened up the door to cable competition.
Comcast's (News - Alert) standard cable TV rate and digital starter rate will each go from $52.50 to $55.75 per month from November 1. Many premium channels such as HBO will go up by $1 to $14.99 per month, states TV4US. Also, from November 1, Comcast has said that the basic cable rate will go up an average of 3.5 percent across the state. This is the second rate increase this year. On January 1, 2008, Comcast welcomed the New Year as it increased the rates by 5 percent across Tennessee.
TV4US represents hundreds of thousands of consumers across the country. The organization is a non-profit, grassroots coalition advocating on behalf of customers who deserve competitive alternatives. This is expected to lead to lower cable bills and improved service. The company believes that the competition will bring more choices, better customer service, and advances in technology for Tennessee consumers.
Customers can experience cost savings when real cable competition takes hold in Tennessee, says TV4US. The organization quotes Bank of America Equity Research in 2006, which 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.
“Without any regard for the hardship many of its customers are facing in this ailing economy, an incumbent cable company is raising rates again in Tennessee while it still has a chance. With little time left as a monopoly, the company knows the days of frequent rate hikes are coming to an end. Soon, Tennessee consumers will have a choice in cable providers and will enjoy lower prices, greater programming choices and better customer service,” said Lizanne Sadlier, executive director of TV4US.
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Raju Shanbhag is a contributing editor for TMCnet. To read more of Raju's articles, please visit his columnist page.

Edited by Michelle Robart