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CABLE RATE INCREASES ARE SMALLEST IN YEARS

By Staff
TVNEWSDAY, Dec 7 2006, 10:17 AM ET

Consumers used to pitting phone companies against one another in order to obtain lower rates are now finding they can do something similar with multichannel TV service providers, according to a story in the Personal Journal section of the Wall Street Journal. Comcast is holding its annual rate increase to 4.5%, its lowest in a decade, while Time Warner is implementing standard increases in some markets and no increase at all in others. Cablevision Systems Corp. plans no increase in its standard rate at all.

The story, written by Sarmad Ali, said Comcast, Time Warner, Cablevision and other cable operators have introductory rates of $100 per month for consumers who take the whole bundle of TV-modem-phone service. Sold separately, the services would cost as much as $125 per month.

Last year, satellite TV prices rose 8.1%, according to Kagan Research, while cable rates rose an average of 5.1%. Next year, satellite operators are expected to take smaller rate increases, as they are forced to compete harder with telcos.

Phone companies have been offering bundled TV-modem-phone service for less money than cable companies charge.

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