Laurie Mauro 0

Demand Competition in Cable TV Industry

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  • Competition is what keeps prices down and the quality of services up. However, the cable industry has been permitted to enjoy exclusive contracts with municipalities, denying consumers those benefits. Especially hard hit are senior citizens, on strict fixed budgets. In some cases, seniors are forced to pay $200/month and more to watch television, with no alternatives. While those in some areas may be able to switch to a fibre optic company, it is unavailable in other areas where these companies refuse to go to the expense of laying their groundwork, without 100% participation of residences within a community. This requirement effectively removes the competition that's necessary for consumer benefit.
  • Legislation needs to be introduced to foster competition between cable companies, perhaps by sharing lines and paying a fee to the company that laid the original groundwork. Those original lines have been bought and paid for many times over, and cable companies should not be allowed to further profit from being the only ones permitted to use them, at the detriment to consumers.
  • Several cell phone providers in the United States operate as mobile virtual network operators. MVNOs do not own their own section of the radio spectrum or own the infrastructure, such as cell towers, to operate a mobile phone service, but rent the necessary equipment from larger providers. Why can't this same practice be used for cable companies?
  • Competition amongst cable companies should be demanded, as consumers need relief from being gouged by them.

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