Fixing cable franchise rules
Kevin Martin, the chairman of the Federal Communications Commission is seeking to implement rules that would simplify the franchising process for new entrants to the cable TV market. Of course, the cable TV providers are upset that someone might tinker with their cozy monopoly. In response to Martin's assertion that cable TV rates have climbed 93 percent since 1995, the president of the National Cable and Telecommunications Association said that the statistics were "deceptive" and "manipulated."
In the past eleven years where my long-distance bills have fallen by more than half, and where technology has greatly improved, my cable bills have gone up by 125%, and the signal is still provided through 1970's technology. In 1995, monthly cable service in Ann Arbor was $24.20, including the box rental. In 2004, monthly cable service in Ann Arbor (same provider, without the box) was $45.03. In 2006, monthly cable service in Virginia is $56.25 per month. In all three cases, my choice of content has been the same: extended analog basic cable.
In contrast, digital satellite TV through DirecTV currently costs $44.99 per month for the standard package, has more channels, and is a much higher quality product. Unfortunately, because satellite TV requires exterior access to a southward-facing location, it isn't an option for many people. And as a result, the cable companies keep gouging customers. In addition, local governments aren't interested in seeing lower cable rates. If cable rates were to significantly drop, like they did for telephone, then revenue from franchise fees and taxes would decrease. So local governments have no incentive to fix their franchising laws to attract new providers. Hopefully, the FCC will approve rules streamlining the process, and maybe we'll see some competition in the local markets.
In the past eleven years where my long-distance bills have fallen by more than half, and where technology has greatly improved, my cable bills have gone up by 125%, and the signal is still provided through 1970's technology. In 1995, monthly cable service in Ann Arbor was $24.20, including the box rental. In 2004, monthly cable service in Ann Arbor (same provider, without the box) was $45.03. In 2006, monthly cable service in Virginia is $56.25 per month. In all three cases, my choice of content has been the same: extended analog basic cable.
In contrast, digital satellite TV through DirecTV currently costs $44.99 per month for the standard package, has more channels, and is a much higher quality product. Unfortunately, because satellite TV requires exterior access to a southward-facing location, it isn't an option for many people. And as a result, the cable companies keep gouging customers. In addition, local governments aren't interested in seeing lower cable rates. If cable rates were to significantly drop, like they did for telephone, then revenue from franchise fees and taxes would decrease. So local governments have no incentive to fix their franchising laws to attract new providers. Hopefully, the FCC will approve rules streamlining the process, and maybe we'll see some competition in the local markets.
posted by David at 12/20/2006 08:58:00 AM
1 Comments:
I've had nothing but trouble from Comcast. It has been a whole year of Comcast problems for me and they don't seem to be ending, yet the prices seem to keep going up. I really wish there was more that the small guy can do to get big, predatory companies, such as Comcast, to give us our money's worth.
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