Comcast will raise cable rates in January
In what has become as much of a Thanksgiving tradition as stuffed turkey and football, Comcast Corp. moved yesterday to raise New England cable television rates by an average 5.9 percent starting in January.
Actual increases vary among towns, however, and in Boston consumers will see the smallest rate increase in 15 years, city officials said. Comcast, which now controls cable systems formerly operated by a half-dozen different operators, is moving toward standardizing rates in the more than 350 New England communities where it provides cable TV.
In Massachusetts, the average monthly price for standard cable service will rise to $45.95 from $43.39, excluding whatever franchise fee the local government charges, according to Comcast spokeswoman Jennifer L. Khoury.
Digital cable packages will increase by an average of $1, offset by a 45-cent-per-month reduction in the cable set-top box rental fee in about 95 percent of Bay State communities serviced by Comcast. The company has over 1.5 million customers in Massachusetts.
Into the early 2000s, cable companies regularly blamed rate increases chiefly on the soaring cost of programming, in particular the cost of paying Walt Disney Co.'s ESPN unit for sports programming.
But in explaining the latest round of price increases, which are not subject to local or state regulation, Khoury said: "Price changes reflect the increased value of the service, new product developments, and a more than $530 million investment to improve customer service, enhance the reliability and quality of our network, and introduce new technology that gives customers more choice and control."
In the last year Comcast has doubled the amount of video-on-demand and high-definition television content available to subscribers on digital plans.
Over the last four years, the average price increase imposed by Comcast or key predecessor companies has steadily dropped, from 8.5 percent in 2002, to 7.8 percent in 2003, and to 6.5 percent last January.
However, the seemingly relentless upward march of cable television prices, well ahead of inflation, continues to rankle consumer advocates.
"Cable rate increases, death, and taxes are the certainties of human existence," said Paul Trane, principal of Telecommunications Insight Group in Somerville, which advises municipal governments on cable franchise negotiations.
"People are frustrated," said Paul J. Schlaver, chairman of the Massachusetts Consumers Coalition and executive director of the Cambridge Consumers Council. "Consumers will be disappointed when they hear it's nearly 6 percent. It sounds like it's just too much."
However, Michael Lynch, director of Boston's cable television regulatory office, said, "What was unexpected is the modest increase of about 50 cents per month across the board, which is an increase of less than 1.5 percent for 90 percent of their subscribers in Boston. This is the lowest rate of increase in the last 15 years."
A small minority of Boston cable subscribers who get so-called Metro cable service, which dates to the 1980s, will see rates soar 14.4 percent to $42.55, Lynch said.
But the price for the most popular service, standard cable, will rise 1.4 percent to $47.50.
Comcast is required to give 30 days' notice before raising rates, which means the company typically files increases in the week before Thanksgiving to take effect in January.
Comcast is not changing rates for high-speed Internet or phone service, Khoury said.
Peter J. Howe can be reached at howe@globe.com.
