Consumer group blasts cable rates

[Ric]

http://money.cnn.com/2003/01/08/news/companies/cable/index.htm

The consumer group that publishes Consumer Reports blasted cable companies Wednesday, claiming they are lying to customers about their reasons for raising rates.

Consumers Union, along with the Consumer Federation of America, released a report disputing claims by major cable operators that rising costs were to blame for rate increases.

Instead, the consumer groups said, rate hikes are funding a series of mergers in the industry that are meant to increase the operators' monopoly power, eroding consumer choice and enabling the companies to keep raising rates.
........
The groups admonished the FCC for doing nothing about the situation and for strengthening the cable operators' power by refusing to allow mergers of satellite providers. The groups specifically cited the recent failure of a planned merger between Hughes Electronics (GMH: Research, Estimates) and EchoStar (DISH: Research, Estimates).

"[The FCC's] decision to keep the satellite industry weak by preventing mergers has served to reinforce the market power of the cable industry," the report said.

[tampa8]

I am sometimes wary of Consumers Union though they sometimes do good work, and I am skeptical of most other groups that get media attention. However, they are correct. Some of us have been saying all along the real competition is between DBS and Cable.

[raj2001]

What really worries me though is that mayor Bloomberg recently said that he is in support of cable rate hikes.

[raj2001]

Originally posted by tampa8
I am sometimes wary of Consumers Union though they sometimes do good work, and I am skeptical of most other groups that get media attention. However, they are correct. Some of us have been saying all along the real competition is between DBS and Cable.

While I agree that cable is the competition, creating another monopoly to compete with them is not the answer.

[Steve Mehs]

Today on the news the consumer affairs reporter on the local ABC station mentioned something about this. This may be the first thing consumer reports published that I agree with. I hate Consumer Reports

[DishDude1]

The FCC is to blame by not allowing the satellite companies to merge? That is laughable. I'm with you Steve, I hate Consumers Report.