Keeping it low: year starts with sub-5% rate hikes.(cable television providers are setting rate increases that are below recent norms)
Multichannel News, December, 2003 by Farrell, Mike
After dodging a bullet by receiving a largely favorable report from the U.S. General Accounting Office in October, MSOs are beginning to set increases for 2004 that are below the recent norm. The GAO report, issued Oct. 24, stated that cable rates have risen 40% in the past five years--while inflation has risen only 12%--but recommended that no federal regulation of the industry was needed.
The GAO also blamed cable rate increases largely on increased programming costs, a mantra that the industry has been spouting for years. With rate-hike season starting so soon after the GAO study--many cable operators implement their rate increases in January, meaning they must notify customers and municipalities at least one month earlier--operators seem to...
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