Massachusetts Cable Competition Bill Would Drive Consumer Savings

    BOSTON, Jan. 19 /PRNewswire-USNewswire/ -- Consumers in Massachusetts
 stand to benefit greatly from cable competition legislation introduced
 earlier this month in the state legislature, according to the American
 Consumer Institute.
     The Massachusetts Cable Choice and Competition Act will benefit these
 consumers by removing the regulatory barriers that discourage companies
 from competing for cable and video customers, the consumer advocacy
 organization said.
     "Our recent study shows that consumers nationwide would save $107
 billion over the next five years if cable TV markets were competitive,"
 said Stephen Pociask, chief economist for the American Consumer Institute.
 "This is just the kind of reform we need to make that a reality for the
 people of Massachusetts."
     When there is competition for cable and other video services, consumers
 save on average more than $22 a month, an ACI survey showed. Not only do
 new companies compete with lower prices and better service, but existing
 cable TV providers also lower their prices in response. This is welcome
 relief to consumers, who have seen cable companies use their monopoly
 status to raise rates faster than even those of drugs and medical care
 services, the ACI said.
     "In addition to significant consumer savings, competition generated by
 this legislation would result in job growth and economic development, as
 well as increased use of broadband Internet services," Pociask said.
     The legislation is a double win for municipalities throughout the
 state, too, he said. Cities will collect franchise fees from customers of
 new competitors, and the lower prices generated by competition will grow
 the market, resulting in additional revenues. At the same time, the
 legislation leaves unchanged municipal control of public rights-of-way and
 governance of public, educational and government channel content.
     "As other states have enacted similar measures, this legislation has
 benefited from their experiences," Pociask said. "It reforms regulations
 that were designed for monopoly cable service, while leveling the playing
 field by allowing cable TV, telephone and other video service companies to
 compete with each other under the same rules. This truly is legislation
 that deserves quick approval so consumers can start saving money
 immediately."
     About The American Consumer Institute
     The Institute is an independent public policy organization committed to
 providing information, analysis and public policy research to the public
 for the betterment of American consumers. The Institute is primarily
 composed of volunteer public policy experts covering a wide range of
 issues. For more information or to contact us, visit
 http://www.theamericanconsumer.org.
 
 

SOURCE American Consumer Institute