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satellite TV competition does not
appear to constrain cable prices
The Federal Communications Commission released a much-anticipated report on cable prices Wednesday, a move that had the wired incumbent crying foul about the agency's perceived targeting of the industry.
The FCC report found that the average monthly rate for cable - including basic and expanded basic cable programming services - increased by 5.2 percent during a 12-month period ending Jan. 1, 2005, from $40.91 to $43.04. Moreover, the commission said cable prices jumped by 93 percent since the period immediately prior to congressional enactment of the 1996 Telecommunications Act.
The FCC also concluded in its report that satellite TV competition does not appear to constrain cable prices. The report said average prices were the same or slightly higher in communities where small dish services were the basis for relieving a cable operator from rate regulation when compared to non-competitive communities, the commission said.
In anticipation of the report, the National Cable and Telecommunications Association released talking points it said shows the real story behind the numbers. Cable's bundle of video, high-speed internet and phone service costs 23 percent less than it did 10 years ago, NCTA said, and for consumers taking a bundle of services, video prices have actually declined.
Also, the viewing of cable programming is way up, and the real cost per hour is down, NCTA said, pointing out that nearly 32 million consumers subscribe to a pay-TV provider other than cable.
In addition, the NCTA contends that the FCC's price survey is out of date and doesn't reflect the current state of competition or the rapidly changing marketplace.
During its open meeting Wednesday, the FCC also approved local video franchise reform. Reaction to that move is available in today's Morning BRIDGE: http://www.thebridgemediagroup.com.
www.SkyReport.com - used with permission
appear to constrain cable prices
The Federal Communications Commission released a much-anticipated report on cable prices Wednesday, a move that had the wired incumbent crying foul about the agency's perceived targeting of the industry.
The FCC report found that the average monthly rate for cable - including basic and expanded basic cable programming services - increased by 5.2 percent during a 12-month period ending Jan. 1, 2005, from $40.91 to $43.04. Moreover, the commission said cable prices jumped by 93 percent since the period immediately prior to congressional enactment of the 1996 Telecommunications Act.
The FCC also concluded in its report that satellite TV competition does not appear to constrain cable prices. The report said average prices were the same or slightly higher in communities where small dish services were the basis for relieving a cable operator from rate regulation when compared to non-competitive communities, the commission said.
In anticipation of the report, the National Cable and Telecommunications Association released talking points it said shows the real story behind the numbers. Cable's bundle of video, high-speed internet and phone service costs 23 percent less than it did 10 years ago, NCTA said, and for consumers taking a bundle of services, video prices have actually declined.
Also, the viewing of cable programming is way up, and the real cost per hour is down, NCTA said, pointing out that nearly 32 million consumers subscribe to a pay-TV provider other than cable.
In addition, the NCTA contends that the FCC's price survey is out of date and doesn't reflect the current state of competition or the rapidly changing marketplace.
During its open meeting Wednesday, the FCC also approved local video franchise reform. Reaction to that move is available in today's Morning BRIDGE: http://www.thebridgemediagroup.com.
www.SkyReport.com - used with permission
