Huntsville families, who will already be worried about their children’s increasing school expenses, will be further burdened with an increase in cable bills by Comcast (News - Alert). Starting August 1, Comcast will raise its monthly charges up to $2.75 for basic cable service and as much as $4.00 for digital packages.

 

The cost savings, or at least abstaining from increasing the existing cost, will happen in states where there is a healthy competition between comparable providers. Bank of America Equity Research in 2006 discovered that prices for video service are between 28 percent and 42 percent lower than they are in areas without competition, where cable companies have to compete.

 

Like most of the U.S., the families in Huntsville are reeling under higher gasoline prices and an uncertain economy. They are also facing the extra financial pressure 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.

 

But if there is competition among the companies, it will put an end to soaring cable rates significant local investment, and new jobs in Huntsville. Illinois is the best example in sight for Huntsville. Less than a 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.

 

Even neighboring Georgia and Tennessee have taken a leaf out of Illinois’ book and have introduced competition to their states through video franchise reform. In Alabama, companies have the ability to provide additional services along their existing infrastructure.

 

“There is a simple solution to skyrocketing cable prices - more competition,” said Lizanne Sadlier, executive director of TV4US (News - Alert). “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.”

 

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.