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Article Surfing ArchiveThe Great Migration From Cable To Satellite TV - Articles SurfingWhat you are about to read should not come as a shock toyou, especially if you are a subscriber of cable TV. Comcast Corp, the dominant cable provider in the nation,has raised cable TV rates for the third time in three yearsThe rates will go up about 6 to 7 percent, depending uponwhere you live. Other cable providers, like RCN, havealso raised rates by about 8 percent. 7 percent is double the rate of inflation. Comcast's priceshave risen three times faster than inflation since 2000. Although cable price increases have moderated in recentyears from the double-digit hikes of the 1990s, manyresearch analysts predict that costs will keep going up. "Operational costs" are the culprits for the rate hikes."Operational costs" include energy costs, improvements incustomer service and network maintenance. Cable companieshave millions of miles of outdated lines buried belowground, and are in the process of converting theirtechnology to digital, which will be expensive. Comcast spentnearly $200 million in the past year to maintain and enhanceits fiber-optic network in the Bay Area alone. More Facts Cable rates have climbed 40 percent in the past six years,from an average $34.40 in 2000 to the $47.93 just announcedfor 2006. During that same period, inflation increased 14.3percent, according to the federal Bureau of LaborStatistics. Is it any wonder why the sale of satellite TV is increasing? There are about 65 million homes nationwide with cable TV, anumber expected to decline to 61 million by 2008. DirecTVaccounts for 15 million subscribers and EchoStar's DishNetwork for 12 million. Because satellite providers don't have to pay taxes leviedby local governments and feature smaller infrastructures,consumers get more bang for the buck with satellite. With cable, additional charges are typically assessed forinstallation and equipment. These charges range from $30 to$80. Satellite TV offers free installation, free movie channels,and free upgrades, usually as an incentive to get customers tosign up for their services. More pros of a satellite dish. * Digital picture means better quality According to a J.D. Power study, the average cost of satelliteservice is about 4% less than cable. Satellite subscriberssave an average of about $2.00 monthly compared to cable. So, as the rates for the cable companies continue to rise,you can expect consumers to continue the migration tosatellite TV.
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