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US Cable TV Companies Raise Rates

The nation's biggest cable companies are boosting their rates by single-digit percentages, citing rising costs for programming and investment in new services.

Industry leader Comcast Corporation is raising the rate on its most popular cable package by an average of 6 percent next year in all markets, while number two Time Warner Cable customers are being asked to pay an average 3.1 percent more for its expanded basic package and 1.9 percent more for its limited basic plan.

The cost for Philadelphia-based Comcast's expanded basic package will rise to an average of about $47.70 as early as January 1, the company said. Nearly all the company's 21.4 million cable subscribers nationwide will see an increase, since the expanded basic plan is the building block upon which digital services are added.

Cable TV rates have clearly risen dramatically since the FCC was ordered to discontinue regulating the industry on March 31, 1999.

As required by Congress in the 1996 Telecommunications Act, after that date, the Commission was told not to accept and process consumer complaints about rates. The FCC had previously resolved more than 18,000 complaints involving more than 5700 cable communities. The Commission had also ordered nearly $100 million in consumer refunds during the nearly six years of cable rate regulation to 40 million cable TV consumers.

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