Cable Bills in Texas Getting Bigger Despite New Competition Posted by Bob at 05/25/07 11:21 AM

You know the old saying about everything being bigger in Texas.

Well we can now confirm that cable bills are indeed getting bigger in the Lone Star State, despite the recent entry of telecom giant Verizon and some other new compeitors into many markets there.

Basic cable rates have not declined in any Texas market where there is competition, according to an enlightening new report from Texas Association of Telecommunications Officers and Advisors (TATOA). You can read the whole report by clicking here.

In Denton -- a suburban community north of Dallas -- the monthly rate for basic cable rose from $12.78 in 2005 to $19.05 today, an increase of more than 49 percent. And that increase occurred even as Verizon and another new competitor called Grande Communications began offering service there.

The survey also showed rates for standard cable service -- the one-step-up option chosen by most consumers -- had either risen or stayed the same in every community in the study. Once again, it didn't seem to matter much if there was new competition from Verizon or other new competitors.

TATOA began surveying cable rates in Texas following passage of a statewide cable franchising in Texas in September 2005. Proponents of the legislation promised it would cause cable rates to drop as much as 45 percent.

Such promises of are still being bandied about in state capitals all around the country, where companies such as AT&T and Verizon have been pushing hard for statewide franchise laws similar to the one in Texas. They've been succeeding in a lot of places, in no small part because of their arguments that the new competition they will bring will drive down rates and improve customer service.

The good folks over at Free Press have a great breakdown of what is going on in the states, which you can view by clicking here.

We commend TATOA for working hard to bring some actual facts to this debate. We hope state legislators deciding on video franchise legislation are listening.

comments (2)

1 Posted by Robert Kam at 05/25/07 12:45 PM

You didn't mention what is happening to the community channels struggling with the statewide franchising in Texas.

In Denton funding for public access, provided by Charter, is not matched by Verizon - although they carry a feed. Charter will no longer have to provide this funding after thier municipal franchise is up in 2.5 years - although I am sure they will continue to do so out of the kindness of thier own heart.

San Antonio lost funding for public access 2 years ago, Houston PEG channels will be gone in another year, and Dallas and Austin are looking into bakesales and pledge drives to survive.

www.savetexasaccess.org

2 Posted by jim at 05/26/07 10:41 PM

I live in conn. and my cable bill is almost $100 a month and it aint never going down.Now thats crazy.