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

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

CHICAGO, Oct. 20 /PRNewswire/ -- A little more than a year after the passage of video franchise reform in Illinois, which opened up the door to cable competition, Comcast is planning to raise its rates -- for the second time this year. But thanks to Illinois' cable competition law, new providers can apply for a statewide franchise that will enable them to compete with incumbent cable providers. One new applicant has been approved since the reform and is beginning to compete in many areas of Illinois.

"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 Illinois 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, most Illinois consumers will have a choice in video providers and will enjoy lower prices, greater programming choices and better customer service," said Lizanne Sadlier, Executive Director of TV4US.

Beginning November 1, the price of Comcast's standard service will go from $54.49 to $56.12, an increase of three percent. Earlier this year Comcast raised its rates across Illinois by an average of 5.8 percent for basic cable. And this on the heels of regular rate increases -- since 2002 Comcast rates have climbed 45.7 percent in Illinois.

As real cable competition continues to spread across Illinois 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 the people of Illinois 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 consumers.

First Call Analyst:
FCMN Contact:

Source: TV4US

CONTACT: Lizanne Sadlier, Executive Director of TV4US,
+1-202-955-5524, lsadlier@wewantchoice.org

---

Profile: International Entertainment