Comcast said Thursday it will raise its cable rates by an average of 6.95 percent in Colorado, following rate increases in other states and by rival satellite providers.
The increase is expected to take effect March 1. Prices for the Philadelphia-based company’s high-speed Internet and home-telephone services will not change, said Comcast Colorado spokeswoman Cindy Parsons. Comcast raised cable rates by an average of 4.4 percent last year.
The rate increase follows similar increases in Portland, Ore.; Philadelphia; San Francisco; Sacramento, Calif.; and Everett, Wash.
In Colorado, Comcast is under competitive pressure from Denver- based Qwest, which offers a bundle of phone, Internet and DirecTV service. Qwest is also attempting to offer its own video service and is lobbying for a statewide franchise agreement to enter the market, saying more competition could lead to lower prices in some areas.
Comcast is countering Qwest’s efforts, arguing that Qwest will not offer video services in all neighborhoods, a requirement Comcast had to fulfill in its markets.
Analysts have speculated that a broad offering of new video services from telecommunication companies such as Qwest, Verizon and AT&T could drive competition and eventually bring prices down.
Competitors hiking rates
Comcast has 800,000 cable- TV subscribers in Colorado and is the nation’s largest cable provider, with more than 24 million customers.
It’s hard to pinpoint the exact rate customers will see on their March bills. Parsons provided average price increases for customers who get only Comcast video service, not bundled packages of TV, phone and Internet services.
For example, customers who have only standard cable – which offers more than 75 channels – pay an average of $45.87. That rate is expected to go up to $49.19. For customers who subscribe to a digital package, the current average price is $66.96. That price will rise to $71.51.
However, Parsons said in a written statement that more than 50 percent of local customers get more than one service from Comcast and “enjoy significant savings as a result.” Her statement did not offer specifics on discounts.
“Price adjustments reflect the increased value of our services and a more than $600 million investment to provide advanced products and services, improve the quality of our products and improved customer service,” Parsons said.
DirecTV, with more than 15 million subscribers the nation’s largest satellite-TV provider, is also expected to raise its rates for existing customers by an average of 4 percent March 1.
Douglas County-based Echo Star said it would raise rates on some of its satellite-TV offerings by an average of 3 percent beginning Feb. 1.
DirecTV said it would raise rates for existing customers who subscribe to its basic package of 155 channels from $44.99 to $47.99. Rates for its middle-tier package will rise $2 to $51.99, and HBO service will go up $1 from $12 to $13.
Program costs increasing
“The new pricing reflects the increased costs of programming,” said DirecTV spokesman Robert Mercer. “We have made significant investments in the business. We continue to enhance the customer’s viewing experience.”
EchoStar said its rate increase does not affect the company’s basic package, America’s Top 100.
Channeling the costs
For customers who get only cable-TV service from Comcast, here’s a breakdown of the average price adjustments for basic, standard and digital video services.
Service 2006 2007
Basic $14.57 $15.54
Standard $45.87 $49.19
Digital $66.96 $71.51
Average $51.92 $55.53
Source: Comcast
This story has been corrected in this online archive. Originally, due to a reporting error, it misstated the size of the rate hike for Comcast cable-TV customers. The average increase for Colorado customers with only cable-TV service will be 6.95 percent beginning March 1.
