Tuesday, December 4, 2007
By the Way Monopoly Money
Posted by Carrington Fox on Tue, Dec 4, 2007 at 12:21 PM
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Smart move, Comcast. There was almost a chance you might turn the public tide against AT&T, but the well-timed rate hike should remind everyone what a pack of jackals you really are. Wait, it's all coming back: the lousy Comcast customer service, the indifferent higher-ups, the crappy basic-cable offerings....
Comcast is raising cable rates across the state this year. And this is on the heels of huge rate increases over the past seven years. Their rates for standard/full basic cable have increased nearly 60% in Chattanooga since 2000, almost 53% in Knoxville and 40% in Nashville since 2001. This comes at a time when consumers are feeling the pinch of higher gas prices, higher health care costs and an unstable housing market.
Earlier this year, the Tennessee General Assembly was unable to pass the Competitive Cable and Video Services Act, which would have brought real cable competition to Tennessee. The one year delay in video franchise reform was estimated to cost Tennessee consumers $177 million, according to a 2006 study by the Phoenix Center for Advanced Legal & Economic Public Policy Studies.
Competition in any market leads to innovation, new products, improved service and better prices. But, more importantly, it puts consumers in control by giving them choices.
States around Tennessee and across the country are opening their markets and providing the opportunity for these benefits along with increased economic development and access to the latest technologies. Let’s bring those benefits to Tennessee by asking members of the General Assembly to pass video franchise reform.
"Wait, it's all coming back: the lousy Comcast customer service, the indifferent higher-ups, the crappy basic-cable offerings...."
Don't forget the frequent cable outages that always seem to happen on a holiday or weekend - just the time when one is more likely to be home and wanting to watch something.
The current system in Tennessee is essentially an extortion racket where the cable company cuts the municipalities in for a piece of the action.
The cable company gets a monoploy in it's territory and the cities get a "franchise fee" - which is paid for by the subscriber.
There was never any legitimate reason why the cities should get to decide what company could or could not offer cable service within their limits in the first place. Or any reason why they should be getting a fee off of it. The cities don't get to decide whether Exxon gets to compete with BP or Chevron by building gas stations in their area and there's no reason why they should have any say in who gets to provide cable TV either.
States around Tennessee and across the country are opening their markets and providing the opportunity for these benefits along with increased economic development and access to the latest technologies. Let’s bring those benefits to Tennessee by asking members of the General Assembly to pass video franchise reform.
Why should we "bring those benefits" to Tennessee, when AT&T and other competitors could sign an agreement today with any municipality in the state and start competing with Comcast? They have their own agenda—specifically, to cherry-pick lucrative service areas—and it's no more beneficial to the customer than Comcast's.
There's nobody to root for in this battle. Either way, the cable customer will end up paying more, either through bundled services or rate hikes.
There was never any legitimate reason why the cities should get to decide what company could or could not offer cable service within their limits in the first place. Or any reason why they should be getting a fee off of it.
The public actually owns the airwaves and the rights-of-way that cable companies use. If Exxon built a gas pipeline across your land, you'd likely want some compensation.
"They have their own agenda—specifically, to cherry-pick lucrative service areas—and it's no more beneficial to the customer than Comcast's."
So what?
Competiton in selected areas is better than no competiton in any area. And it certainly would be a benefit to the people in those areas.
Besides, there isn't anything in the Constitution about having a right of equal access to cable TV - or anything else for that matter. Companies in other industries "cherry pick" their customers all the time. There's nothing "special" about cable TV that requires it to be any different.
"The public actually owns the airwaves and the rights-of-way that cable companies use. If Exxon built a gas pipeline across your land, you'd likely want some compensation."
The cities don't own the airwaves. They are under the jurisdiction of the Federal Communications Commision to regulate. As for the rights-of-way, they are owned by the taxpayers. And as a taxpayer I have already paid for the right of way and shouldn't have to pay another "fee" for it tacked onto my cable bill.
Besides, the phone lines are on those rights-of-way already, the same as the cable lines are. Competition is already allowed between telephone companies for local and long distance phone service over the same rights-of-way. There's no reason why competition for cable TV service shouldn't be allowed the same way.
I wonder how it is that Comcast is able to raise its rates in Knoxville, our lovely neighbor to the East, when there is direct cable TV competition from Knology (in the wealthy areas of town).
Or maybe the wealthy's cable rates aren't raised like those of the little people.
Last year AT&T came to us and asked that we support the merger with BellSouth making the New ATT the largest telecommunication company in the world. We agreed, and our members supported this merger. In late December 2006 the merger was complete. The new AT&T was formed.
It is now apparent the new AT&T is not interested in continuing the previous relationship we had with BellSouth. In less than one year AT&T has moved our jobs out of state. The Large Business Department has moved to four other states. The Fleet Center has moved to Saint Louis, MO. The Fraud Center is closing in December. Large Business customer's accounts are now being handled in four other states.
We have lost over 300 jobs in South Carolina in less than one year.
http://tinyurl.com/2cdjw7
A commentary from Knoxville, which already has competing cable systems:
http://www.knoxviews.com/node/6464
"The AT&T statewide cable franchise bill is headed back to the Tennessee legislature. Not surprisingly, the Knoxville News Sentinel has once again taken the pro-big business, anti-consumer anti-local government position and endorsed it.
"I guess AT&T and the KNS are going to keep at this until they wear down opponents of the bill. But just as AT&T and the KNS can trot out the same old propaganda in favor of the bill, opponents can program hotkeys with the same rebuttals from last time around.
"KNS: "AT&T claims the legislation will bring competition for cable TV services, which in turn will lower prices for the average customer because of the choices available."
"REALITY: Comcast, Charter, and Knology already operate in the Knoxville market, generating millions in franchise fees for local governments. These companies were able to negotiate local cable franchises and operate them for years. (And that's not counting satellite providers, who don't pay franchise fees but do provide competition.) Why can't AT&T do the same? What's stopping them? In fact, AT&T has been invited by local governments to submit proposals. Curiously, they haven't."
