C4CC to U.S. Senate Commerce Committee: Dysfunctional Cable TV Marketplace Costs Consumers Too Much But Cure Is Simple and Within Congress' Reach

C4CC to U.S. Senate Commerce Committee: Dysfunctional Cable TV Marketplace Costs Consumers Too Much But Cure Is Simple and Within Congress' Reach

WASHINGTON, Feb. 15 /PRNewswire/ -- National advocacy group Consumers for Cable Choice (C4CC) today offered a quick and effective cure to what ails the cable industry: a competitive marketplace that will give consumers a fighting chance for better price, service and innovation.

In testimony submitted to the U.S. Senate Commerce, Science and Transportation Committee at its hearing on whether the nation's Cable Franchising Authority process should be updated, C4CC's president, Robert K. Johnson answered simply, but emphatically, "yes."

"The cable television marketplace is dysfunctional and consumers are paying the price through exorbitant rates, deplorable customer service and limited program offerings," Johnson said. "The solution is simple and straightforward. Move the video franchise process to the state level."

"In doing so, however, maintain an obligation to pay local franchise fees and provide local institutional channels," he urged. "This will allow new entrants to provide service on an expeditious basis and ensure local benefits. As you wisely did a decade ago with the Telecommunications Act of 1996, open the door to competition. Let consumers benefit from the market principles that make our economy great."

Demonstrating the results of the current process, Johnson cited Federal Communication Commission (FCC) findings that show the price of the basic expanded cable package - to which four-fifths of cable consumers subscribe - has gone up 86 percent in the past decade. Additionally, all the major cable companies have announced new rate increases for early 2006, led by Comcast's 6-percent nationwide increase. In that same time period:

* The average cell phone bill has decreased 5.6 percent as usage tripled;
* The average long distance rate has dropped by 50 percent; and
* The price of a personal computer has declined by 78 percent.

"The inescapable lesson in these numbers is that technology drives down cost, unless that technology is held by a monopoly," Johnson said.

Johnson's complete testimony will be available at http://www.consumers4choice.org/ today. He submitted comments to the FCC on Monday, asking the agency to update its cable franchise process. Those comments are also available at http://www.consumers4choice.org/.

About Consumers for Cable Choice, Inc.

Headquartered in Indianapolis, Ind. Consumers for Cable Choice, Inc. is a national alliance of consumer advocacy groups, private citizens and others who are committed to promoting maximum choice for consumers in cable, video and broadband services. Consumers for Cable Choice uses a combination of education and grassroots advocacy to impact change, which will result in a deregulated and pro-consumer market that stimulates fair price, more choices and better service options in the cable television industry. President Robert K. Johnson has been advocating for policies that benefit residential and small business consumers for more than 20 years. To learn more, visit http://www.consumers4choice.org/ or http://www.mycablenightmare.com/.

Media Contact:
Cheryl Reed
(317) 205-9690
cherylreed@synergy-mg.com

Source: Consumers for Cable Choice

CONTACT: Cheryl Reed of Synergy Marketing, Inc., +1-317-205-9690, or
cherylreed@synergy-mg.com

Web Site: http://www.consumers4choice.org/
http://www.mycablenightmare.com/

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