Wednesday, January 08, 2003

My favorite monopoly...
My love of the cable industry grows daily and I am thrilled to see that other consumer oriented groups are now joining me. Today the much admired Consumer Reports has blasted the cable companies in a strong statement involving the word, "lying". As in lying to the consumer about the nature of rate increases. In some instances rates in the last year have gone up 9% while the consumer price index has shown less than a 1% rate increase.

"Cable operators are blaming the rate increases on a number of things in an effort to hide the underlying cause -- the greed of the nation's most persistent monopolists in the midst of a costly and anti-consumer merger wave," the report said. Instead, the consumer groups said, "rate hikes are funding a series of mergers in the industry that are meant to increase the operators' monopoly power, eroding consumer choice and enabling the companies to keep raising rates."


The problem is that in most areas of the country, cable companies do have monopolies with only limited oversight by local governments who granted the company rights to operate in their areas. It will be interesting to watch the outcome as this struggle of oppression over consumers continues.