Floridians Are Demanding Relief from High Cable TV Prices

Floridians Are Demanding Relief from High Cable TV Prices

Consumer Choice Act will Bring Significant Benefits to Consumers

WASHINGTON, May 11 /PRNewswire/ -- There is an important bill on Governor Crist's desk waiting to be signed into law. The bill, the Consumer Choice Act, was overwhelmingly passed 117-1 in the House and 30-3 in the Senate, and it promises to save Florida consumers as much as $1.4 billion in lower cable TV prices each year. The overwhelming passage of the bill sends a sense of urgency and unity to the Governor regarding the need to end cable TV monopoly power.

It is not just policymakers that support change, so do consumers. In a survey conducted by a Tallahassee-based research firm, only 4% of consumers did not want more cable TV competition and less than 8% did not support statewide franchising legislation to encourage competition. "Any opposition to this bill is merely the result of special interest activists that have no concern about helping consumers," said Steve Pociask, president of the American Consumer Institute. A short list of empirical evidence agrees:

-- FCC (2005) found competitive prices were 27% lower per channel.
-- Bank of America (2006) reported incumbent prices falling 43%, 39% and
29% in three newly competitive markets.
-- American Consumer Institute (2006) survey found consumer prices fell
30% in Texas, thanks to competition.
-- Phoenix Center (2006) estimated $8.2 billion of annual benefits from
competition.
-- Former FCC Chief Economist Tom Hazlett estimated that the lack of
competition costing Americans $9 billion of annual losses.
-- U.S. GAO (Feb. 2004) found prices to be 28% lower in competitive
markets.
-- Professors Ellig and Brito estimated $10.4 billion in losses for
consumers, due to high monopoly prices and forgone benefits.

Competition will bring Florida consumers lower prices, better service quality and choice, not to mention jobs, investment and an increase in community franchise revenues. "It is truly a win-win for consumers and local communities," adds Pociask.

About The American Consumer Institute

The Institute is an independent consumer organization committed to providing information, analysis, and policy research to the public for the betterment of American consumers. The Institute is primarily comprised of volunteer public policy experts covering a wide range of issues. http://www.theamericanconsumer.org/.

The full study, "Net Neutrality and the Effects on Consumers," is available at http://www.theamericanconsumer.org/research.htm.

First Call Analyst:
FCMN Contact:

Source: The American Consumer Institute

CONTACT: Stephen Pociask of The American Consumer Institute,
+1-703-471-3954, Steve@theAmericanConsumer.Org

Web site:

http://www.theamericanconsumer.org/
http://www.theamericanconsumer.org/research.htm

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