Cable Rates Increase: But Doors Are Now Open to Competition Which Will Help Tennessee Families Struggling in Today's Economy

Cable Rates Increase: But Doors Are Now Open to Competition Which Will Help Tennessee Families Struggling in Today's Economy

NASHVILLE, Tenn., Oct. 14 /PRNewswire/ -- Less than six months after the Tennessee legislature passed into law the Competitive Cable and Video Services Act, which opened up the door to cable competition, Comcast is planning to raise its rates -- for the second time this year. But thanks to Tennessee's cable competition law, two new providers have applied for or received a statewide franchise that will enable them to compete with incumbent cable providers. One provider expects to be coming to Nashville in the near future.

"Without any regard for the hardship many of its customers are facing in this ailing economy, an incumbent cable company is raising rates again in Tennessee while it still has a chance. With little time left as a monopoly, the company knows the days of frequent rate hikes are coming to an end. Soon, Tennessee consumers will have a choice in cable providers and will enjoy lower prices, greater programming choices and better customer service," said Lizanne Sadlier, Executive Director of TV4US.

Beginning November 1, Comcast's standard cable TV rate and digital starter rate will each go from $52.50 to $55.75 per month, a 6 percent increase. Many premium channels such as HBO will go up by $1 to $14.99 per month. Comcast, the largest provider in Tennessee, says the basic cable rate will go up an average of 3.5 percent across the state beginning November 1. This is the second rate increase this year. Comcast rang in the new year by raising rates by 5 percent across Tennessee on January 1, 2008.

When real cable competition takes hold in Tennessee, consumers can expect to see cost savings. Bank of America Equity Research in 2006 found that in areas where cable companies have to compete, prices for video service are between 28 percent and 42 percent lower than they are in areas without competition. In turbulent economic times, that is a cost savings Tennesseans would welcome.

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. We are a non-profit, grassroots coalition advocating on behalf of customers who deserve competitive alternatives, leading to lower cable bills and improved service. We believe that competition will bring more choices, better customer service, and advances in technology for Tennessee consumers.

Source: TV4US

CONTACT: Lizanne Sadlier, Executive Director of TV4US,
lsadlier@wewantchoice.org

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