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More on Cable Pricing

Today’s CableFAX Daily notes our Friday post about the misleading way cable price increases are frequently reported. Citing Friday’s USA Today’s article, CFD agrees that FCC Chairman Kevin Martin will apparently tie rising cable prices to proposed plans making it easier for the telcos to receive video franchises. While the FCC’s annual price survey isn’t out yet, CFD did its own calculations:

It appears that the avg monthly rate of cable has increased about 5% from $41.29 for Jan 1, ’04 and about 7% in areas where there’s effective DBS competition. If those numbers hold, expect cable to point out that Verizon plans to raise its rates for new customers 7.6% in Jan to $42.99. The most basic AT&T package listed on its Website (over 190 channels) starts at $59.99. Martin, however, will probably base his argument on the idea that the avg rate declines where wireline overbuilder competition exists.
CFD also had this interesting tidbit: “Cable Prices Drop $2/Month! At least they do in FCC press releases. The text of Martin’s Thurs night speech [at Georgetown’s school of business] originally quoted a $45.04 monthly cable avg (for programming and equipment). The commission issued a press release late Fri correcting the price to $43.04.”

Posted on December 4, 2006 02:07 PM | Comments (0)

« News Reports of Cable TV Price Increases Incomplete, Misleading | Main | WSJ Delves Deeper on Cable Price Increases »

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