Competition Means Lower Prices and a Stronger Economy

Competition Means Lower Prices and a Stronger Economy

WASHINGTON, March 31 /PRNewswire/ -- The following statement may be attributed to Harry C. Alford, President & CEO of the National Black Chamber of Commerce.

Mr. Alford issued the statement in reaction to the U.S. House Energy & Commerce Committee's Subcommittee on Telecommunications & the Internet hearing on a bill that will deliver consumer choice and competition for video services.

"Many television viewers pay too much for cable service because the local cable company doesn't face any competition. Black cable customers are especially vulnerable to over-pricing, since they tend to subscribe to premium channels in higher numbers than whites. The Barton-Rush bill, which is pending on Capitol Hill, would clear the way for more competition and lower prices.

Under current law, would-be competitors have to negotiate with local officials for the right to enter the video market. This cumbersome process has dissuaded potential competitors from challenging the cable giants. Barton- Rush would replace that archaic system with a national franchising process: Instead of securing thousands of separate agreements with cities and towns, a company that wants to enter the video market could sign a single deal.

In addition to leading to lower prices, cable competition will pump up the economy. If they have to compete for customers, video providers will invest in new technology and upgrade infrastructure in order to attract and keep subscribers. Those expenditures will increase the demand for new telecommunications equipment and create jobs.

Expanding and improving the broadband network will help close the 'digital divide' that threatens the economic prosperity of many black citizens -- and help the country as a whole compete in the global economy."

Source: National Black Chamber of Commerce

CONTACT: Harry C. Alford, President & CEO of National Black Chamber of
Commerce, +1-202-466-6888

Web site: http://www.nationalbcc.org/

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