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Ernest Miller Ernest Miller pursues research and writing on cyberlaw, intellectual property, and First Amendment issues. Mr. Miller attended the U.S. Naval Academy before attending Yale Law School, where he was president and co-founder of the Law and Technology Society, and founded the technology law and policy news site LawMeme. He is a fellow of the Information Society Project at Yale Law School. Ernest Miller's blog postings can also be found @
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October 25, 2003

GAO - Capitalism Good for Cable Companies

Posted by Ernest Miller

The Washington Post publishes an article on a recent General Accounting Office report on competition in the cable industry (GAO Suggests Competition Good for Cable). The report can be found here (Telecommunications: Issues Related to Competition and Subscriber Rates in the Cable Television Industry [PDF]). Read the highlights [PDF].

The report found, unsurprisingly, that where there is a choice of two cable companies (only 2% of markets) consumers benefit with cable prices approximately 15% lower than those markets without competition. Where direct broadcast satellite providers can provide local channels cable companies respond by offering better service. Also, unsurprisingly, networks with a cable affiliation are more likely to be available than those networks without a cable affiliation.

Comments (1) + TrackBacks (0) | Category: Open Access | Telecomm


COMMENTS

1. Jeremy Hollier on January 9, 2004 06:35 PM writes...

I was searching the net for cable providers, in order to try to persuade one to consider doing business in my local area. I came across this article about how having a choice in cable companies is good for the consumer. Do you have any advice on what i can do to get another company in the area? Our current cable company, Cable One, has the highest prices, worst service, and worst choice of programing i have ever seen. They usually don't show up for appointments. They don't carry comedy central or many other channels i watched when i lived elsewhere. My cable has not worked right for two months and i still can not get them to fix it. For all this we pay just under $100 per month. Pathetic! Our little metro are here has over 500,000 residents, not to mention all the casinos, resorts, military installations, and other big users of cable services. I think our area can support another cable company. What can i do to help make that happen?

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