Cable TV rates on the rise

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 its $99 "triple play" package, which includes cable TV, Internet and telephone service.

Consumer advocates have complained for years that cable TV prices around the country have risen much faster than inflation. But the cable industry says it has also provided customers provided 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.

Comcast isn't the only cable company charging more. 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 hike 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 a 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.
(By Todd Wallack, Globe staff)