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FCC studies rise in cable rates

Wed, 02/14/2001 - 7:00pm
Karen Kessler-Tanaka

The FCC released the results of a year-long study showing that cable rates are rising. Reuters reports that Americans have been paying on average 5.8 percent more a month for basic and expanded cable television as well as related equipment.

Other costs that led to the price hikes included system upgrades, equipment cost increases, inflation and increased costs related to newly added channels, according to the FCC.

In mid-1999, consumers were charged $30.63 by operators facing competition and $32.25 by operators not facing competition. In the period ended July 1, 1999, rates went up 4.5 percent in competitive markets and 5.2 percent in noncompetitive markets.

Basic cable television service rates for the year ended July 1, 2000 climbed 6.1 percent while prices for expanded service, which offers consumers more channels, rose 5.9 percent in both competitive and noncompetitive markets, the FCC found.

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