Monday, February 19, 2007

 

Benefits of Competition My Ass

Here's a little nugget from today's Washington Post. The headline from the story should be, "Verizon Competes, Rates Climb."
Bills for thousands of Montgomery County cable viewers will increase by 4 percent starting March 1, when Comcast Corp., suburban Maryland's largest cable television provider, raises rates throughout the Washington region.

Montgomery leaders had hoped that competition from a new provider, Verizon Communications Inc., would help lower prices. But Comcast said recently that cable bills would climb . . . The announcement comes after the county fined Comcast twice in the past six months for failing to meet benchmarks for customer service.
[snip]
The Montgomery and Prince George's county councils signed off in November on agreements to allow Verizon to begin offering fiber-optic television service. Company officials hailed the "benefits of choice" for customers, including less expensive service.

Verizon has since raised its rates for new customers by 7.6 percent. And RCN, the third company that offers cable television service in Montgomery, raised its base price last month by 15 percent.
[snip]

So much for the idea that "competition will bring down rates," said Montgomery County Council President Marilyn Praisner (D-Eastern County), who has long clashed with the industry over regulation. "That clearly hasn't happened."
Are you listening Kevin Martin?

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Comments:
No, he's not.

But you knew that.

~

Speaking of competition . . . sure will be fun to sit back and watch the sparks fly on this Sirius/XM deal.
# posted by Anonymous MB : 2/19/2007 3:41 PM
 
Follow the money and you'll find the price hikes come from those 'poor little old' content companies. Rights-holders are refusing to enter the modern era and will be squeezing every last red cent they can out of old models. Oh and doesn't Comcast have ownership over some content...?
# posted by Anonymous Anonymous : 2/20/2007 6:14 AM
 
As Jerry Brito points out on TLF, Verizon has had permission to compete in this market for less than three months.

http://www.techliberation.com/archives/042048.php

Your ideology is showing.
# posted by Anonymous Anonymous : 2/20/2007 11:14 AM
 
A question - do the newer tv providers offer "lifeline" services to the elderly and poor? Our community demands it and we have a fair number of people who can't afford the $40 nominal service, but can pop for the $13 lifeline.

just curious ...

If such services aren't offered it may make sense to involve AARP and others...
# posted by Anonymous steve : 2/20/2007 8:12 PM
 
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