Sunday, February 7, 2016

Comcast boosts prices again 'because they can': report

Telecom analyst Craig Moffett questions why Comcast is boosting fees at a time when one in six Americans is jobless and half have no disposable income

Comcast boosts prices again 'because they can': report


COMCAST BOOSTS CABLE RATES AGAIN: "A few days ago, Comcast announced they would be raising video prices in the San Francisco Bay area," writes analyst Craig Moffett of Bernstein Research in a report to clients today.

HOW MUCH: "The price hikes - averaging about 5% for expanded basic cable and about 3% overall - are the first of the year's annual price hike season. Other markets will presumably see similar sized increases...

INTERNET, TOO: "They also raised cable modem equipment prices by $2 per month, a clever way of hiking rates without relinquishing their right to claim that they have held the line on broadband service prices...

MONOPOLY: "Comcast is raising prices because they can, or at least because they believe they can. Presumably, they believe their customers can afford it... The cable operators are fortunate that," unlike Verizon and other wireless-phone companies, "there simply aren't alternatives out there that are half, or even one-third, the cost."

HALF OF AMERICA CAN'T PAY: Moffett isn't convinced consumers will keep paying Comcast more. He's also worried about Verizon and the phone companies, Dish Network and the bottom feeders, and any other mass-market telecom company, at a time when one of every six working-age Americans is either looking for work or has given up trying, and half of families have no disposable income to speak of.

We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy: comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog

PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at, 215.854.5194, @PhillyJoeD. Read his blog posts at and his Inquirer columns at Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
Also on
letter icon Newsletter