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Cable TV, satellite prices rise

Providers cite higher costs of programming

Email|Print| Text size + By Todd Wallack
Globe Staff / January 22, 2008

The price of watching CNN, ESPN, and other pay-television networks is going up - again. Comcast, RCN, Verizon, and satellite providers are all increasing their rates.

Comcast Corp., the state's largest cable TV provider with about 1.6 million customers in Massachusetts, plans to raise rates an average of 4 percent next month.

In Somerville, for instance, on Feb. 1 Comcast plans to raise the rates for standard cable by $2.59 to $46.44. Comcast plans to raise the cost of its digital starter package by $2.59 to $50.43.

The exact prices vary by town and package. Comcast noted that it does not plan to increase rates for its $99 "triple play" package, which includes cable TV, Internet, and phone service.

Consumer advocates have complained for years that cable prices around the country have risen much faster than inflation. But the industry says it has also provided customers with a growing array of channels and services, such as high-definition signals and video on demand, which drive up the cost of service.

"Price adjustments reflect the increased value of our services," said Comcast spokesman Jim Hughes. "Additionally, we have hired more than 1,000 new employees, the vast majority of whom directly support customers in their homes, on the telephone, and online."

Cable and satellite TV providers also cited increasing programming costs - the fees they pay for access to channels like MTV and ESPN.

RCN Corp., which has about 75,000 TV customers in Massachusetts, said it raised rates about 5 percent for some customers in November. The company said it increased rates for basic and expanded cable TV service by $2.99 to nearly $60. But the cable provider said it decided to freeze prices for popular packages that also include Internet or phone service.

"Most customers didn't see an increase," said Richard Wadman, RCN's vice president and general manager for the Boston market, noting the company is continuing its efforts to gain market share. Wadman said RCN decided to raise rates for TV-only customers, because it is facing higher costs for programming.

Verizon Communications Inc. plans to raise rates for its most popular package by 12 percent on Feb. 17. Spokesman Phil Santoro said it will increase prices for its main television package, FIOS premier, by $5 to $47.99 for new customers. Current customers will not be affected, he said, because their rates are locked in for two years from the time they signed up for service. The phone giant reported it had nearly 12,000 TV-only customers in Massachusetts at the end of 2006, but declined to give an updated figure.

The country's two largest satellite TV operators, DirecTV and EchoStar Communications Corp.'s Dish Network, also are boosting prices for some packages.

Parker McConachie, a spokesman for Dish Network, said the company is freezing the price of its most popular programming packages this year, including DishDVR Advantage. But it is raising rates for some other packages by $2 to $5, or 3 percent, on Feb. 1. "Unfortunately we cannot offset the unavoidable costs of increased television programming fees, which were more than 5 percent in 2007," McConachie said.

Dish Network had 13.6 million customers nationwide as of September.

DirectTV, the country largest satellite network with 16.6 million customers, is raising its rates an average of 4 percent next month, according to Multichannel News, an industry publication. DirectTV did not return requests for comment yesterday.

Overall, about 60 percent of Massachusetts residents subscribe to cable or fiber TV, and another 20 to 25 percent have satellite TV.

Todd Wallack can be reached at twallack@globe.com.

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