Cable tv industry annoyed at FCC chair's rate criticisms
FCC Chair Kevin Martin doesn't sound too pleased with the acceleration in the rate of cable services, and the way they are sold.
Commenting at an FCC hearing last Thursday, Martin told Congressional lawmakers who were present that while cable rates had jumped 38% from 2000 to 2005 and 93% from 1995 to 2005, the price of other communications products local and long distance telephone and wireless phone service had decreased dramatically.
Martin - who supports a la carte monthly subscription pricing models based on number and type of channel subscribed to- seemed to imply that for consumers, the best buy under current subscription structures would be to receive 100 channels or more.
The National Cable & Telecommunications Association, which represents cable tv systems, has some differences with Martin's statistics, and the conclusions he draws from them.
NCTA vice president of communications Brian Dietz told Broadcasting & Cable magazine that due to extra services, the actual price of cable's bundle of video, Internet and telephone services is 20% lower than the price of the same package of services 10 years ago.
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