Comcast raising rates for cable TV

Comcast Corp., the Charleston region's dominant cable TV provider, is again raising its rates much faster than inflation, including sizable increases for some of its basic packages.

The company, which serves about 120,000 local households, said it is boosting prices an average of 3.5 percent starting today.

Subscribers to Comcast's lower tiers will see some of the higher increases. Those signed up for the company's limited basic service will see a 10.1 percent jump, to $7.65 from $6.95. Subscribers to the company's standard service, one of its most popular offerings, will see a 17.9 percent jump, to $43.34 a month from $36.75.

Comcast also is raising various rates for installation and repair services, but its prices for Internet and phone service will not change.

The Philadelphia-based cable giant said this year's rate increase is tied to system upgrades and new channels.

"(The new rates) reflect the increased value of offerings, new product enhancements and the investments to improve customer service," said Bill Watson, Comcast's regional general manager. "We've done things here in Charleston that I believe are adding value."

Though Comcast's annual price increases have consistently outpaced inflation, the company noted the scores of new channels it has folded into its subscription packages, a proliferation of "on-demand" movies and technological upgrades that allow it to broadcast 31 channels in high definition.

But the higher rates are stacking up in Comcast coffers. The company reported a 24 percent increase in revenue last year and $2.59 billion in income. Of every dollar it brought in, 8 cents went into the profit pot. On average, Comcast collected $102 per month from each of its cable customers in 2007, according to the company's filings with the Securities and Exchange Commission.

Comcast isn't alone, however. Big rate increases are widespread in the cable industry, according to annual studies by the Federal Communications Commission.

For example, Knology Inc., which has about 228,000 cable customers in the Southeast, raised rates Feb. 1 on its most popular TV package to $50.60 from $47.99, a 5.4 percent increase. The Georgia-based company, which serves some areas in the Charleston region, did not alter prices on its other cable tiers or its phone services.

The rate increases have drawn the ire of consumer advocates and lawmakers, many of whom say the carriers are justifying higher rates by giving subscribers more channels than they want or watch.

The FCC has said cable companies could economically sell channels individually, an option referred to as "a la carte" subscriptions.

If customers were able to order just the channels they wanted, their bills would be as much as 13 percent lower, according to the government study.

The lowdown

Some of Comcast's steepest price increases are on its lowest tiers of cable TV service.

Service ... Old $ ... New $ ... Increase

Ltd. basic ... $6.95 ... $7.65 ... 10.1%

Standard ... $36.75 ... $43.34 ... 17.9%

Full basic ... $48.70 ... $50.99 ... 4.7%

Dgtl. classic ... $58.65 ... $63.94 ... 9.0%

Dgtl. platinum ... $136.70 ... $141.99 ... 3.9%

Reach Kyle Stock at 937-5763 or kstock@postandcourier.com.