Comcast sets annual rate hike, includes contested fees (original) (raw)

Comcast's annual rate hike kicks in Oct. 1, raising monthly prices by several dollars for most subscribers.

Those rates again include higher broadcast and sports fees that nearly all TV subscribers pay, which the company says cover the rising cost of programming.

Comcast lists those higher fees in its fine print but local cable TV regulators say they are misleading and may violate Oregon's consumer protection laws. In March, they asked the state to investigate.

Comcast raises rates every year, in amounts that vary considerably based on the packages to which customers subscribe. The company offers a confusing array of introductory discounts and renewal packages, so there's no one standard price for any Comcast service.

But the broadcast and sports fees apply to nearly all TV subscribers. They're going up from 11amonth,combined,to11 a month, combined, to 11amonth,combined,to14.50.

Here's how it the fees work:

Comcast markets a "starter" package for an introductory rate of 90amonth,whichincludesinternetserviceandapackageofpopularcableTVandbroadcastnetworks.Butwiththeaddedfees,plus90 a month, which includes internet service and a package of popular cable TV and broadcast networks. But with the added fees, plus 90amonth,whichincludesinternetserviceandapackageofpopularcableTVandbroadcastnetworks.Butwiththeaddedfees,plus10 a month for a modem rental, it's actually $111 a month.

Beginning October 1, the monthly cost includes a 1.50increaseinthebroadcastfee,a1.50 increase in the broadcast fee, a 1.50increaseinthebroadcastfee,a2 increase in the sports fee, and a $1 increase in the modem rental.

That's 115.50altogetherand115.50 altogether and 115.50altogetherand4.50 more overall, a 4.1 percent increase.

(The full pricing is even more complicated. After a year, Comcast says the base price goes up to $120 a month. Plus, it also passes along local government fees and taxes, which vary by jurisdiction. And subscribers can buy their own modem, if they prefer, and save that monthly rental cost.)

Next month's higher prices don't come with more channels, but Comcast has substantially boosted its internet speeds in the past year.

Last fall, it increased speeds for its two most popular plans from 75 megabits per second to 100 Mbps, and from 150 Mbps to 200 Mbps. And in May, it began offering gigabit connections - 1,000 Mbps - in Oregon and in several other markets.

"We continue to make investments in our network and technology to give customers more for their money - like faster Internet service and more WiFi hotspots, more video across viewing screens, better technology like X1 and a better customer experience," Comcast Oregon spokeswoman Amy Keiter said in a written statement.

The sports and broadcast fees, she wrote, "allow us to be more transparent with our customers about the factors driving price changes, and represent only a portion of our costs of carrying broadcast and regional sports networks."

Comcast owns some of those networks it's charging extra for, including NBC and NBC Sports Northwest (formerly CSN Northwest), which carries Portland Trail Blazers games.

Comcast is the largest cable TV provider in the Northwest and the nation. It has 600,000 subscribers in Oregon and Southwest Washington.

At one time, subscribers could insulate themselves from Comcast's annual rate increases by agreeing to a contract with a fixed price. But starting in 2013, Comcast began tacking on the broadcast and sports fees - regulators sometimes refer to them as "B-S Fees" - that go up for every TV subscriber, every year, regardless of whether they're under contract.

Federal law limits local regulators' oversight of cable TV pricing, but cable TV companies are subject to state consumer protection laws. So cable regulators in Eugene, Milwaukie and Multnomah and Washington counties wrote to Oregon's attorney general in March asking that the state investigate Comcast's fees.

"The issues of concern revolve around 'fees' cable companies charge to subscribers that are not included in the stated monthly rates for cable TV programming packages," the regulators wrote. They noted that Comcast cannot opt out of the fees, even if they differ from advertised rates, and that subscribers end up paying more than their contracted rate.

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The regulators say they have heard nothing from the Department of Justice since April, when they held a brief meeting on the subject.

"We are looking at the fees/billings issue across the industry (i.e. in relation to various providers)," Kristina Edmunson, department spokeswoman, said in a written statement.

-- Mike Rogoway; twitter: @rogoway; 503-294-7699

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