Comcast raising rates starting Jan. 1: Average TV-only rate rising 4.5%; higher costs cited

Nov 27, 2008 (The Record - McClatchy-Tribune Information Services via COMTEX) -- CMCSA | Quote | Chart | News | PowerRating -- Cable subscription prices are going up again for television-only Central Valley subscribers, an average 4.5 percent increase beginning Jan. 1, Comcast Corp. announced Wednesday.

There will be no price increase for customers receiving service bundles -- such as television, broadband Internet and telephone -- nor for stand-alone broadband or telephone services, said Bryan Byrd, a Comcast spokesman in Sacramento.

"While we are highly focused on controlling our costs for the benefit of our customers, price adjustments are a necessity in view of the increased cost of doing business in this challenging economic environment, including gas prices, health care costs, increases in the cost we pay for programming, and technology and service improvements," Byrd said in a statement.

He also noted the company has invested heavily to expand its video-on-demand and high-definition programming offerings.

Still, Comcast has significantly boosted its television prices over the years.

Subscribers in Stockton, Manteca and Lathrop paid $34.99 a month for standard cable in 2002, a year before Comcast acquired its Central Valley cable network from AT&T Broadband. Come Jan. 1, the price will be $57.95 a month, a nearly two-thirds increase over seven years.

It also is an 8 percent bump from the current $53.65 a month.

Byrd said considering only standard cable was unfair. Ten years ago, perhaps, more than 90 percent of Comcast customers subscribed to standard cable; but today, that has fallen to only about 15 percent.

Most customers now subscribe to some sort of service bundle or digital television, not directly comparable to standard cable service of 2002.

Charles Langley, an analyst with Utility Consumers Action Network in San Diego, said cable companies in general have set prices to encourage consumers to buy more services, selling bundles for less then their components.

"This is a trend to try to force consumers to buy expensive bundles," he said Wednesday.

While Comcast does not operate in the San Diego area, Langley suggested, "They're penalizing you for wanting to shop a la carte."

Signing up customers for service bundles benefits communication companies in two ways, said Mindy Spatt, media director for The Utility Rate Network in San Francisco.

"They make more money on the bundles and consumer research shows customers are less likely to switch" providers, she said Wednesday.

"From TURN's viewpoint, it looks to us like customers are going to be pushed into bundles, and there are fewer and fewer options for consumers that what to buy just one or two services," Spatt said.

Consumers do have the choice to seek alternative services, said Allan Banez, a consumer advocate and founder of LetterChamp in Tracy.

After tiring of annual price increases from Comcast, he looked into satellite television.

"I switched over to that, ... and it turned out cheaper," he said.

Contact reporter Reed Fujii at (209) 546-8253 or rfujii@recordnet.com.

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