Cable To Raise Prices?

According to a new report by analyst Jonathan Chaplin of New Street Research, cable providers, (led by Comcast, the largest cable company in the US) are set to start hiking prices soon on business and residential Internet. According to the research cable and high speed Internet prices haven't really gone up in several years and many price points are led by sale prices for Internet double bundles and triple play bundles. Double play bundles can have Internet and video or Internet and voice or voice and video. Triple play bundles have all three, voice, video and Internet.

While cable and Internet prices have remained stable, Internet usage has skyrocketed. With more and more people and more and more devices becoming connected, the demand for high speed internet is expected to keep rising.

Cable television viewing has been declining for several years which is called cord cutting. This will also contribute to the need for higher prices for high speed Internet.

Experts say that competition should keep prices lower but the FCC under Trump and FCC Chariman Ajit Pai seems determined to minimize competition by redefining "broadband competition" to mean that there is one Internet service provider in an area as long as they also have cell service. The FCC is also trying to lower the definition for high sepeed Internet from 25 Mbps to 10 Mbps.

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