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story category Cable Not Happy About FCC Cable Price Investigation
NCTA boss calls it 'a broad fishing expidition'
10:09AM Thursday Nov 13 2008 by Karl Bode
tags: prices · fcc · business
Though it's not clear how serious the inquiry is anyway, the cable industry apparently isn't too pleased with FCC boss Kevin Martin's inquiry into soaring cable TV rates. In a letter to the FCC, National Cable & Telecommunications Association president Kyle McSlarrow called the FCC's investigation "a broad fishing expedition" that "constitutes an abuse of the [FCC's] processes," according to Multichannel News. Martin is concerned that cable operators are moving channels to digital and then charging consumers to rent digital boxes to maintain access to the same number of channels. He's also eying a post-FCC political career, and the inquiry could be largely showmanship, given that criticizing high cable TV rates then doing nothing about them is a real crowd pleaser.

Related:
  1. Thursday Evening Links
  2. Friday Evening Links
  3. Monday Evening Links
  4. 'Intercarrier Compensation Reform' Means Higher Rates
  5. Wednesday Evening Links
  6. Friday Evening Links
  7. FCC Launches Investigation Into High TV Prices
  8. Martin, Comcast, Continue Lover's Feud
Forums » Cable Not Happy About FCC Cable Price Investigation
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Agreed

@teksavvy.com

Cable has been doing this for years

This is the very reason I dropped my cable service and went to Dish. Bresnan kept moving basic cable channels to there Digital package and then telling me I would have to upgrade my cable service to there more expensive digital package to see the channels again. This was about 5years ago. The Cable companies have been doing this for awhile. It is about time someone looks into this..... Better late then never!

Rick
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join:2001-02-06
Waterbury, CT
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Re: Cable has been doing this for years

Sorry..but dish just isn't a fair comparison. The cable co's are trying to contend with an analog to digital migration..unlike what satellite operators are.

Consumers are demanding more digital and particularly hd content and the cable co's have to contend with all this.

What the editorial isn't saying is that at least here in my area..comcast is giving customers a free digi box for a year if they had their channels moved. (or they were anyway the last i knew). and the second and third boxes would only be a 1.95.

Digital also gives customers more in the form of on demand and the interactive guide.

And so, all in all..I think Comcast at least has been very fair about it all. One has to recognize that these companies have to spend a fortune on digital equipment as well.
--
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Titus Pullo
I came, I saw, I slept

join:2004-06-26
·Embarq

Re: Cable has been doing this for years

If they've nothing to fear, why are they complaining about what hasn't happened yet? They know they'll get a reach-around from the FCC; they always do. This is the usual Kabuki dance of feigned outrage after feigned oversight we get every go-round.

"Consumers are demanding digital" ... yeah, all those poor folks are clamoring to pay more so they don't have to zoom the pictures on the HDTVs they bought well over a year ago because the cable companies wanted THEM to absorb any costs related to "digital migration." It's not likely that cable companies were ever going to absorb anything, so please stop with that nonsense.

The entire premise that the cable companies are victims is a pantsload.
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ptrowski
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edit:
November 13th, @11:12AM

Re: Cable has been doing this for years

There has been a slow creep of channels moving into the "digital tier" from cable providers. So what happens? The basic cable users are losing channels but yet the price remains the same. So to get access to the channels they ALREADY HAD, they now have to pay more and "rent" boxes to get the channels that were taken away.

It's all about creating new revenue streams. Poor cable companies my rear.
--
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Titus Pullo
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join:2004-06-26
·Embarq

Re: Cable has been doing this for years

said by ptrowski See Profile :

There has been a slow creep of channels moving into the "digital tier" from cable providers. So what happens? The basic cable users are losing channels but yet the price remains the same. So to get access to the channels they ALREADY HAD, they now have to pay more and "rent" boxes to get the channels that were taken away.

It's all about creating new revenu streams. Poor cable companies my rear.
Yeah, I know two people who called to complain and were given introductory offers (one claims to never have heard the word) with a box and 6 months of a few premium channels. Then they fill their undies when that $150 a month bill pops up. One took the box back, the other still takes it up the rear for one HBO and one SHO show. Cheaper to wait and get them from netflix - that's what I do.
--
Bob61571

join:2008-08-08
Washington, IL

Re: Cable has been doing this for years

Comcast is now catching flak in Central/Northern Illinois for moving channels from analog basic service to the "digital tier" , and the natives are restless!(in the newspaper forums!)

Springfield State Journal-Register 11/12/08 »www.sj-r.com/homepage/x172064986···-service

Bloomington Pantagraph 11/7/08 »www.pantagraph.com/articles/2008···3981.txt

Peoria Journal-Star 11/11/08 »www.pjstar.com/business/x8118041···fferings

Rockford Register Star 10/30/08 »www.rrstar.com/news/x1016922025/···st-extra

Champaign News-Gazette 11/3/08 »www.news-gazette.com/business/20···ustomers

Channels moved recently in some/all these cities above: National Geographic, EWTN, ION, ShopNBC, C-SPAN2, MTV2, SOAPNet, G4, and Style

RadioDoc
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·AT&T Midwest


edit:
November 13th, @11:46AM

said by Rick See Profile :

Consumers are demanding more digital and particularly hd content and the cable co's have to contend with all this.
Consumers are demanding lower prices and an end to channel deletions and shifting to higher-priced tiers too but I don't see any of the NCTA members doing anything but grinning while looking at their record profits when that is brought up.

On demand? Netflix via the excellent Roku box or now Tivo beats the snot out of Comcast's offerings for a lot less money. PPV? Amazon. No need for cable's price increases.

Cable has played the 'added feature' game for so long it is beginning to price itself out of the market. Adding "features" nobody really asked for and then raising the price because of them is the equivalent to putting a birdhouse on a Hyundai and then raising the price because the car is now "greener" due to market demand. It's marketing bullshit.

In other news, Disney is trying to move four of the five BCS football bowl games from free OTA TV to ESPN by outbidding Fox (and others) for the rights. If they succeed (and they probably will) that $120 million will be passed on through higher fees to everyone who has ESPN on their system whether they watch it or not. The price increase will be shrugged off as necessary to satisfy customer demands when it is an artificial construct from start to finish as Disney is using the anticipated higher subscriber fees to subsidize their bid beyond what the ad market will support. Cable operators play this game every day and don't really care because it doesn't cost them anything and may even make money at it. It's about time for a flag to be thrown, but unfortunately this FCC won't be the one to do it.

Let's see if we can round up those "[c]onsumers are demanding more digital and particularly hd content" and let them pay for it. The rest of us don't want to. Thanks.

imrf
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Utica, MI
·WOW Internet and C..

Re: Cable has been doing this for years

Apparently you didn't get the memo, AT&T has already had 2 price increases with their awesome U-Verse service in the last 6 months.

And both sat companies have raised their rates each year for the last 3 years.

ptrowski
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Re: Cable has been doing this for years

said by imrf See Profile :

Apparently you didn't get the memo, AT&T has already had 2 price increases with their awesome U-Verse service in the last 6 months.

And both sat companies have raised their rates each year for the last 3 years.
It's not about the increases, it's about moving the channels to higher tiers, forcing an upgrade.
--
"So, Lone Star, now you see that evil will always triumph because good is dumb."

Have you been touched by his noodly appendage? »www.venganza.org

Cable tv

@comcast.net


thumbs down from:
GlassRail See Profile

Price themselves out of the market?
standard tier digital cable with a box and remote and on demand costs about 2.00 a day.

Sorry but I don't see that as being expensive when you consider you get an entire family entertainment for that kind of a price. On top of that, it's not like they're all cable company costs. Far from it. the programming costs eat up the vast majority of that amount.

RadioDoc
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join:2000-05-11
Chicago, IL
·AT&T Midwest

Re: Cable has been doing this for years

said by Cable tv :

Price themselves out of the market?
standard tier digital cable with a box and remote and on demand costs about 2.00 a day.

Sorry but I don't see that as being expensive when you consider you get an entire family entertainment for that kind of a price. On top of that, it's not like they're all cable company costs. Far from it. the programming costs eat up the vast majority of that amount.
Hey cable boy, read my entire comment. But since you won't I'll just add that $60 a month to watch "standard tier" cable TV is absurd.
--
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RickNY
Premium
join:2000-11-02
New York
·Optimum Online

said by Rick See Profile :

What the editorial isn't saying is that at least here in my area..comcast is giving customers a free digi box for a year if they had their channels moved. (or they were anyway the last i knew). and the second and third boxes would only be a 1.95.
Probably a good source of complaints top the FCC regarding this practice came from Cablevision customers.. Cablevision took the 5 most viewed Family Cable channels and moved them to digital only. To receive them, you need a digital box at $6.50 per month, per box - AND you need to subscribe to at least their 'digital navigation' package at a cost of $4.50.. Now, they offered the first box and the nav package free for a year, but after that, you're paying $11 a month more (minimum) for a tier that is advertised as $49.95. If youre in a house with say 4 TV's, your bill just went up almost $31 because they moved what is likely to be one or more of your favorite channels over to digital.

Its deceptive

KrK
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said by Rick See Profile :

Sorry..but dish just isn't a fair comparison.
Why not?

Your claim is kinda like me saying. "Dish has to deal with harrowing satellite launches"...

etc

Basically the only comparison when you come down to it is:

What channels do I get, how do they look, and how much does it cost.
--
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MysticGogeta
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I'm sorry but they've been doing this for years. Its not cause of the digital migration its because they want to make more profit.
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psomero
Premium
join:2008-11-09
San Jose, CA

free box? this comcast you speak of clearly isn't the comcast i've dealt with.

i recently tried adding one non-HD dvr receiver to my account. we already have two other dvr receivers on the account, so the only new fee was the additional monthly lease, which turned out to be an additional $16 a month.

for 2 non-hd dvr receivers, the mid-level digital cable plan, HBO and starz, we're paying $159 a month. on top of that, it seems that number now jumps $4-$5 each month.

as they struggle to keep up with the satellite companies (companies? sorry, i meant directv) they're compressing their channels more and more so they can fit more HD channels into the pipe they have to work with. this cram as much as you can approach has caused a massive degradation in signal quality and all of the channels are getting more and more horrible looking each time they add another HD channel or two.
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

most of you former analog channels were most likely coming from an all digital source anyway. TruTV is one. Cable companies usually convert it over to analog just to get more people to watch it and because its popular. Discovery Health is another digital channel and gets downgraded in some markets by providers.

The move to take them from analog to digital restores the picture quality and frees up bandwidth on the network.

and if you think Martin is really going to do anything get over that part. Especially with Comcast being on the list. They'll slap him with another lawsuit and drag that puppy out in court and win like they do over his 30% cap.
bbenso1

join:2004-11-28
Baltimore, MD

Re: Cable has been doing this for years

said by hottboiinnc See Profile :

The move to take them from analog to digital restores the picture quality and frees up bandwidth on the network.
Yup, it does both of those. Incidentally, both of those things are good for the cable company - better picture quality increases customer satisfaction and more bandwidth allows them to deliver more channels. The problem, however, comes in when customers now have to upgrade to digital service (and pay more for the service, plus rent a box for each TV they have) in order to view those same channels. They used to be able to just plug the cable into the back of the TV and get those channels. Now they need to pay the cable company every month in order to rent a box to allow them to view the same channels they used to get without paying a rental fee every month.
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Cable has been doing this for years

but in return changing from your former cable company to Dish or DirecTV does the same thing. Allows them to charge you PER SET TOP BOX per TV. But not just paying for one or two TVs out of say 4 you pay for all FOUR of those TVs at what $4 per month? Still not really any savings really when you look it at it. You have a contract, you pay for programing that still goes up in price, you pay for locals unless you use OTA or have a high enough priced package where those are "free" in some areas required more than one dish, and still pay the STB fee each month.

NO savings when you look at it.

ptrowski
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Re: Cable has been doing this for years

said by hottboiinnc See Profile :

but in return changing from your former cable company to Dish or DirecTV does the same thing. Allows them to charge you PER SET TOP BOX per TV. But not just paying for one or two TVs out of say 4 you pay for all FOUR of those TVs at what $4 per month? Still not really any savings really when you look it at it. You have a contract, you pay for programing that still goes up in price, you pay for locals unless you use OTA or have a high enough priced package where those are "free" in some areas required more than one dish, and still pay the STB fee each month.

NO savings when you look at it.
But Dish and DirectTV are not moving channels into another tier forcing the upgrade. Cable is taking away channels from the basic tiers, so you pay the same but get less.
--
"So, Lone Star, now you see that evil will always triumph because good is dumb."

Have you been touched by his noodly appendage? »www.venganza.org
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Cable has been doing this for years

first off its Direc TV not DirectTV there is only 1 "t" in the name of the company. but they do force you to upgrade in order to get "free locals" its either pay for them separate or pay for a higher tier.

But anyways in the long run you still deal with the STB costs and also have to PAY for your DVRs and HD STBs with cable you don't--got a problem you don't have to pay for a tech to come out either.

DirecTV and Dish make you pay that. Also you don't see DirecTV and Dish giving cable away to schools, libraries and other public places such as those.

ptrowski
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Re: Cable has been doing this for years

said by hottboiinnc See Profile :

first off its Direc TV not DirectTV there is only 1 "t" in the name of the company. but they do force you to upgrade in order to get "free locals" its either pay for them separate or pay for a higher tier.

But anyways in the long run you still deal with the STB costs and also have to PAY for your DVRs and HD STBs with cable you don't--got a problem you don't have to pay for a tech to come out either.

DirecTV and Dish make you pay that. Also you don't see DirecTV and Dish giving cable away to schools, libraries and other public places such as those.
I have their service so I am well versed in what you have to do, not have to do.
But you are completely missing the point. They are not forcing you to move to a higher priced tier by removing the channels on your current tier.
--
"So, Lone Star, now you see that evil will always triumph because good is dumb."

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cableguy619

join:2003-06-24
Chula Vista, CA
You obviously do nto understand the cost that is put on the cable comanies to carry a channel.. they do not get the channel for free..

Blame the FCC for not regulating the networks, that is where it needs to start...

PToN

join:2001-10-04
Houston, TX

Congress

Way to go... But he is only doing this because he wants to run for congress..

He can careless about what they charge. Once he gets the votes and get the seat he will "stop caring"

RadioDoc
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Re: Congress

Actually, he's doing it because Consumers Union filed a complaint with Congress.
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who cares

@comcast.net

Cable Not Happy About FCC Cable Price Investigation

couldn't happen to a more deserving bunch of greed buckets

cork1958
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Fruitport, MI
·Charter Pipeline

Re: Cable Not Happy About FCC Cable Price Investigation

said by who cares :

couldn't happen to a more deserving bunch of greed buckets
Man! Ain't that the truth?!!
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Jmartz

join:2000-07-20
Tenafly, NJ

Cablevision has removed channels..

made the channels digital, and they are still raising the family cable (analog package) price... even though a good 10 - 15 channels have been taken away from the package this year.

If that's not worth investigating, I don't know what is.

not me 2

@comcast.net

Re: Cablevision has removed channels..

The same is happening with comcast. they haven't taken 10 channels away this year but they have taken away 4 of them and yet the price is going up. Seems a bit backwards to pay more for fewer channels.
LurkerLito

join:2004-06-08
·Verizon FIOS

Boxes boxes boxes BS

It's about time. They should be investigating why Cable doesn't put out the standard "family" basic channels out as clear QAM instead of requiring people to rent a box per tuner. Most of my TVs have ATSC/QAM tuners built in now, but I can't use them on anything but the local stations because cable encrypts all the other stations that are suppose to come with my family basic coverage. If they ever go digital only then I'd need a box per every tuner @ $7/month each. I miss a lot of shows because they moved the dam channels off the "analog" line and into digital. But instead of moving that channel from a clear analog signal to a clear digital signal, they moved it to an encrypted digital signal so I can only watch it on my one box.

They should require the cable companies to make any former clear analog channel on their system that was available to a user without a box also available digitally without a box as a unencrypted QAM signal.

See 8 replies to this post
Sammer

join:2005-12-22
Pittsburgh, PA

Cable concerned about next Chairman

Kevin Martin won't be Chairman next July but the cable companies don't want him laying the groundwork for the next Chairman who might really be serious about such an investigation of cable prices.
Mr Matt

join:2008-01-29
Eustis, FL
·Comcast

FCC maintaining a high level of stupidity.

I recently purchased a HDTV and found that it can receive both unscrambled QAM as well as ATSC signals. Unfortunately the wizards at the FCC and our Government excluded ATSC to NTSC Converters with QAM capability from the $40.00 coupon program. I am sure that the cable companies can reconfigure their networks to use tier traps to block access to those channels that are not included in a subscribers program package. On the other hand the CATV Companies want to charge customers $6.95 a month for a digital outlet as well as $6.95 for a standard definition digital to NTSC or decoder. The CATV Industry needs a good dose of regulation in order to cure this B.S.

kfsutops
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Nothing to See Herer

Nothing will come of this. Nothing at all.

This will be just like the hearing McCain had over al a carte. A whole bunch of bullsh*t talk but do nothing.
--
"There are no stupid questions, but there are a LOT of inquisitive idiots"

Rob
In Deo speramus
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·Comcast

Post-FCC Political career?

ROFLAMO. Who the hell would vote for this clown?

Sorry Martin, the circus just hired the last round of clowns 2 weeks ago.
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RadioDoc
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Re: Post-FCC Political career?

He's going back to the high-profile law firm he worked for prior to joining the FCC for awhile, and once he's milked that he'll run for some office somewhere, probably back in North Carolina where he came from. He's got deep Republican party ties having been one of the dogs burying the 2000 vote in Florida. They'll make sure he's well taken care of.
--
Toolmaster of La Grange.

Rob
In Deo speramus
Premium
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Re: Post-FCC Political career?

said by RadioDoc See Profile :

He's going back to the high-profile law firm he worked for prior to joining the FCC for awhile, and once he's milked that he'll run for some office somewhere, probably back in North Carolina where he came from. He's got deep Republican party ties having been one of the dogs burying the 2000 vote in Florida. They'll make sure he's well taken care of.
I thought a telco was hiring him?

RadioDoc
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Re: Post-FCC Political career?

said by Rob See Profile :

I thought a telco was hiring him?
Much more lucrative to be counsel at a politically-connected law firm.
--
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N3OGH
Will it all be Obama's fault now?
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Martin's Post FCC career is as a Sophomore at an all boy's college prep school.

Damn, that guy looks like a HS escapee. What is he, like 12 or something?
--
Petty people are disproportionably corrupted by petty power…

TooMuchDough



Not worth it

Forced upgrades on consumers:
Digital HD TV. I don't want it, but do I have a choice? Not unless I unplug, and ditch the TV, but the wife won't allow that.
Digital tuners: More $$$, for cable co's, who restrict what we can or cannot do with the box. Gone are the days when you can tape a show while you're out (for pennies).
This is what happens when an industry pays themselves millions/year, and some jerk $1M+/episode. It's not worth it.
What do we get? Shorter seasons, more commercials, larger base costs.
Cable co's/satelite providers should thank their lucky stars that most online video streams are of poor quality, less people change their viewing habits, and lock the providers out completely.

imrf
Premium
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Utica, MI
·WOW Internet and C..

Re: Not worth it

said by TooMuchDough :

Digital HD TV. I don't want it, but do I have a choice? Not unless I unplug, and ditch the TV, but the wife won't allow that.
Nobody is forcing you to go HD. Go read up on what is really happening.

Digital tuners: More $$$, for cable co's, who restrict what we can or cannot do with the box. Gone are the days when you can tape a show while you're out (for pennies).
You can still record digital tv with a VCR. Again read up on how to hook it up properly.

This is what happens when an industry pays themselves millions/year, and some jerk $1M+/episode. It's not worth it.
What do we get? Shorter seasons, more commercials, larger base costs.
What the cable industry does has absolutely no bearing on what actors do, how long seasons run or the amount of commercials.

You really should remove your tinfoil hat.
molsen

join:2002-04-12
Huntington, NY

Digital Conversion

If you go to AT&T, Verizon or Dish or DirecTV, don't they force you to get a box for every TV? It seems to me at least with cable you can choose whether to go that route, or stay with analog directly on the back of your TV. What's the issue?

Rob
In Deo speramus
Premium
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·Comcast

Re: Digital Conversion

said by molsen See Profile :

If you go to AT&T, Verizon or Dish or DirecTV, don't they force you to get a box for every TV? It seems to me at least with cable you can choose whether to go that route, or stay with analog directly on the back of your TV. What's the issue?
Cable is moving analog channels to digital, forcing customers to upgrade to a digital package (anywhere from $5-15 extra per month, maybe even more) as well as rent a digital box for every TV - all so the customer can receive the EXACT same service they were receiving prior.

ptrowski
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The issue is that channels are being moved over to the digital" packages. So analog customers are losing more and more of their channels that are dropped into a "digital package". So yes, you can still plug it into the TV, but you will get less and less for the same price.

KrK
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Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Digital Conversion

In reality, the idea of "basic" cable has been gutted. In a modern system, basic cable will be a digital package and require a STB to operate on a analog TV. You'd think that Digital cable basic would work without a STB on a digital TV, but the cable companies aren't setting it up that way.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
centsofhumor

join:2007-01-20
Two Rivers, WI
·Charter Pipeline

Just crooks

We used to get these channels down below. Now they are on some weird "Exp Basic (Digital Only)" tier. How the hell can they be expanded basic? I cant get them on my tvs digital tuner. Oh and the tvguide channel disappered too, and they have it listed as basic. What a joke. Oh they are raising prices for charter in my service area for expanded basic in december.
78 Lifetime Movie Network Exp Basic (Digital Only)
79 GSN (Game Show) Exp Basic (Digital Only)
80 G4 Exp Basic (Digital Only)
82 Soap Net Exp Basic (Digital Only)
83 Toon Disney Exp Basic (Digital Only)
89 TV Guide Basic (Digital Only)

aaronwt
Premium
join:2004-11-07
Woodbridge, VA

The sooner analog dies the better

This is the 21st century. Analog needs to die
pimpdad82

join:2004-09-12
Portsmouth, VA

Re: The sooner analog dies the better

Why?
majortom1029

join:2006-10-19
Lindenhurst, NY

unfairly targeted

What i see is cable being unfairly targetted.

Why is it that cable has to keep their tv analog while verizon doesn't? That doesnt seem fair to me.

See 6 replies to this post
russotto

join:2000-10-05
Collegeville, PA

Fishing expedition

It's may be a fishing expedition, but that's only fair seeing as cable companies have been stocking the lake for years.

Dspairl
Premium
join:2004-06-09
Norwich, CT
·Comcast

Don't Really Care

You know, every single service has it's ups and downs......Yes certain channels have been taken away. Yes I went with DirecTV. Hell you show me where any cable company can give me almost 300 channels for 42.99 a month for the first 12 months then go to 57.99 for a fixed price....Expanded basic in my area with about 50 channels is 54.99 or something like that....my total bill is about 70 bux a month with insurance, and 3 boxes...my neighbor has the cable company and gets about half of what I get for 118 a month....it's a no brainer.
cableguy619

join:2003-06-24
Chula Vista, CA

Re: Don't Really Care

I see you on on Comcast HSI so added to your 2 seperate bills is 120.00 not sure what you pay for on telco if you have it... add your curtent budle how ever it is and compare it to someones all in 1 bundle.. see the price difference and really compare

bundled I know plenty of people who pay approximately what you are or about 5-8 dollars more for TV,HSi, Telco..

bottom line is choice, what do you really want