Comcast Raises Rates in Huntsville in Time for Back-to-School

Comcast Raises Rates in Huntsville in Time for Back-to-School

TV4US Says Greater Competition Would End Excessive Rate Increases and Bring New Jobs, Investment

HUNTSVILLE, Ala., July 28 /PRNewswire/ -- Comcast has a surprise back-to-school gift for Huntsville families -- a larger cable bill. Beginning August 1, just as back-to-school expenses begin to pile up, customers will be charged as much as $2.75 a month more for basic cable service and as much as $4.00 more for digital packages.

Cable rates continue to rise unabated in Huntsville, with Comcast's rates soaring 89.5 percent since 2001.

The most recent rate hike comes at a time when Huntsville families, already hurting from higher gasoline prices and an uncertain economy, are facing the extra expense of sending their kids back to school. A National Retail Federation (NRF) survey predicts that families of school age children will spend an average of $594.24 per family for back-to-school items, such as electronics, clothing and school supplies.

"There is a simple solution to skyrocketing cable prices - more competition," said Lizanne Sadlier, Executive Director of TV4US. "Without additional competition, Comcast can charge whatever it wants and consumers will have little recourse. But, when cable companies compete for customers, consumers enjoy lower prices, greater programming choices and better customer service."

States that have real cable competition among comparable providers have begun to experience 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 addition to putting an end to soaring cable rates, greater competition would lead to significant local investment and new jobs in Huntsville. Less than one year after Illinois passed legislation to encourage cable competition, one new provider hired 1,400 employees and started on a plan to invest $1.3 billion to build out wirelines and support the delivery of its services in the state.

Twenty state legislatures across the nation have brought competition to their states through video franchise reform, including neighboring Georgia and Tennessee. In Alabama, companies have the ability to provide additional services along their existing infrastructure, but some municipalities are trying to restrict the expanding innovation and investment.

Many municipalities across the state have cleared the way for competition and will soon be reaping the benefits, including greater consumer choice, better prices, improved service, new jobs and investment. By joining those municipalities, Huntsville could start the school year off right and earn straight A's from Hunstville's TV viewers.

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 Alabama consumers.

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Source: TV4US

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

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Profile: International Entertainment