10 Things Cable Companies Dont Want You to Know
1. "Deregulation is a joke."
For years the cable business had acted like a typical monopoly, providing less-than- ideal customer service, skyrocketing prices, and little choice of service. Then along came the Telecommunications Act of 1996, which opened the door for competition and promised weary cable customers relief at last. Too bad that relief never came. Nearly four years after the bill was passed, a mere 286 of the 30,000 U.S. cable markets were being served by more than one provider, according to the Federal Communications Commission.
10 Things Cable Companies Dont Want You to Know
2. "We raise prices recklessly ..."
Perhaps you've accepted the fact that cable prices move in only one direction -- up. But what's really shocking is how quickly they rise. The average price increase for cable service in 2005, the most recent year for which data is available, was more than 5 percent, and from 1995 to 2005, cable rates nearly doubled, according to the FCC. Will things get better? Not likely. The cable industry has been undertaking a massive upgrade of existing wiring in order to beef up its offerings of services like high-speed Internet access and local phone service-all of which will cost you.
10 Things Cable Companies Dont Want You to Know
3. "... and manipulate the dial."
Even as prices increase, it seems that the programming choices cable companies offer are somehow more limited. With the most popular channels intentionally divided into different tiers, consumers often must buy several packages of programming to get all the channels they want, says Mark Cooper, director of research for the Consumer Federation of America. Cable companies that also own a lot of programming -- like Time Warner, which owns HBO, CNN, and TNT among other channels -- especially benefit from these package deals.
10 Things Cable Companies Dont Want You to Know
4. "Bundling services can cost you more."
Increasingly, consumers are getting bundled telephone, cable television, and high-speed Internet service from one provider for an average price of $100 per month. Sounds like a great deal. But it doesn't make sense for everyone, says John Breyault, research director for the nonprofit Telecommunications Research and Action Center in Washington, D.C. "Most bundled packages are based on an all-you-can-eat model," he says. "Many consumers will find that they're able to save money by buying services individually that more closely meet their needs."
10 Things Cable Companies Dont Want You to Know
5. "We want to control the Internet the way we control TV."
In October 2007, an Associated Press test revealed that Comcast had deliberately blocked Internet users from sharing files online. Computers that were connected to the Internet via Comcast cable modems would not let users send the King James Bible from one location in the U.S. to another using the file-sharing program BitTorrent; however, computers with other connections, including Time Warner Cable and Cablevision, had no problem sharing and uploading the text. Industry experts say that Comcast was blocking internal content because the BitTorrent application potentially competes with the company's video service.
10 Things Cable Companies Dont Want You to Know
6. "Our fiber-optic cables are an eyesore."
Cable companies have invested over $110 billion in infrastructure, according to a spokesperson for the National Cable and Telecommunications Association. But in a move to install fiber-optic cable throughout cities, they're littering neighborhoods with ugly new power lines. Black cables roughly 2 inches thick are hanging below utility and phone lines, which are much thinner and less obtrusive by design. In addition, the companies have tacked big black canisters onto telephone poles. The cables have a negative impact on the neighborhood and could potentially lower property values in the future.
10 Things Cable Companies Dont Want You to Know
7. "We're so good at excuses we start to believe them ourselves."
Every year when cable prices go up, cable providers rush to justify their rate hikes. But these excuses are often false or vastly exaggerated. Then there's high-speed Internet. After years of investing in infrastructure, cable companies are justifying rate hikes by saying they're providing a menu of consumer-friendly applications and rolling out higher bandwidth that increases speed. At Cox Communications, for example, they're offering customers "faster speeds, greater online security and enhanced features to make their lives easier," says a company spokesperson.
10 Things Cable Companies Dont Want You to Know
8. "We can't handle customer service."
After the FCC insisted in the mid-1990s that the cable industry do something about its dismal customer service, companies began promising such things as on-time installation and service calls. Just don't mention that to Ray Lucas. Lucas, who works for a computer-services company in Gaithersburg, Md., called customer service because his Comcast cable Internet access had mysteriously stopped working. During the month-long ordeal of getting his service restored, Lucas says he made at least 10 calls to customer service, often waiting nearly an hour on hold.
10 Things Cable Companies Dont Want You to Know
9. "We're going to pummel you with advertising."
For years cable companies have been boasting about all their cool high-tech features. But beware. As you give your cable company more and more information about your viewing and shopping habits, it's going to become more and more likely to make you the target of advertisers. "The digital revolution has a dark underbelly," warns Gene Kimmelman, vice president for federal and legal affairs at Consumers Union. "A lot of these bits include personal information about viewing habits and interests that are easily transformed into marketing materials."
10 Things Cable Companies Dont Want You to Know
10. "We promise more high-definition programming than we deliver."
The availability of high-definition television has been steadily growing: Today about 90 percent of U.S. homes can access HDTV via cable. Unfortunately, HDTV programming isn't keeping up. According to a recent Consumer Reports survey, 70 percent of cable and satellite subscribers said the availability of high-definition content was average or poor. Bottom line: Viewers aren't getting enough channels in high definition. Some cable companies offer basic digital packages, for about $15 to $20 per month, which provide only the major broadcast networks in HD.
10 Things Cable Companies Dont Want You to Know
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