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from: Isen Blog

Benefits of Competition My Ass
Monday, February 19, 2007

Here's a little nugget from today's Washington Post. The headline from the story should be, "Verizon Competes, Rates Climb."

Bills for thousands of Montgomery County cable viewers will increase by 4 percent starting March 1, when Comcast Corp., suburban Maryland's largest cable television provider, raises rates throughout the Washington region.

Montgomery leaders had hoped that competition from a new provider, Verizon Communications Inc., would help lower prices. But Comcast said recently that cable bills would climb . . . The announcement comes after the county fined Comcast twice in the past six months for failing to meet benchmarks for customer service.

[snip]

The Montgomery and Prince George's county councils signed off in November on agreements to allow Verizon to begin offering fiber-optic television service. Company officials hailed the "benefits of choice" for customers, including less expensive service.

Verizon has since raised its rates for new customers by 7.6 percent. And RCN, the third company that offers cable television service in Montgomery, raised its base price last month by 15 percent.

[snip]

So much for the idea that "competition will bring down rates," said Montgomery County Council President Marilyn Praisner (D-Eastern County), who has long clashed with the industry over regulation. "That clearly hasn't happened."

Are you listening Kevin Martin?