The effectiveness of capitalism requires the safeguarding of the fundamental principles of free markets and competition.  If these principles are disregarded and not properly protected, the consequences are undesirable imbalances that lead to lower service and higher prices.  Without competition, companies can charge whatever they feel they are entitled to and there is no incentive to improve their service.

Just recently I have experience this first hand and would like to report this unfortunate event so that, united, consumers can fight with the best weapon available to us: how we spend our money.   In the area where I live, cable service used to be provided by Time Warner Cable.  There is no other cable service provider in the area, so if you want cable TV or high-speed internet through cable your only choice was to sign up with Time Warner.  Time Warner’s prices in my opinion were high for the service they provided.

But the real problem with the lack of competition in this market became really apparent when Comcast acquired Time Warner and moved in the area.  Suddenly, I started experiencing constant service interruptions unlike anything I had experienced before.  The internet connection was noticeably slower, and the lack of connection was frequent enough to the point where it became annoying.  Other people in the area seemed to be experiencing similar problems.

To make matters worse, this month Comcast increased the price of their internet service from $44.95 a month to $52.95 a month.  This corresponds to a 17.8% increase, or the equivalent of approximately 6 times the rate of inflation!  And that is not all.  The $52.95 rate will only be available for 6 months.  Comcast has been “kind enough” to give a $10 discount for the first 6 months to previous Time Warner customers.  What this means is that in 6 months the price will be $62.95 per month, AN INCREASE OF 40% OVER THE ORIGINAL PRICE!

This may seem naïve on my part, but I could not simply accept this without at least calling them to express my discontent.  When I complained about the higher prices for lower service their response was to call Technical Support if I was experiencing technical difficulties.  Then they asked if I had any other questions.  What they were really saying is that they don’t care about my dissatisfaction with their worse-service-higher-prices business model.

Although the alternatives to cable companies’ poor and overpriced service are limited, there are alternatives.  If you want premium channels, instead of cable use satellite services such as Direct TV or Dish Network.  Instead of cable, DSL may be an acceptable alternative for high speed internet.  In the future, telephone companies may also provide video service.  I am definitely considering transitioning to DSL.  I cannot fathom paying $62.95 a month or $755 per year for internet service that is at best unreliable.

For more interesting reading on the subject, you can review the following articles:

• Save $$$: End the Cable TV Monopoly
• Deregulation of cable monopoly leads to more options in "black boxes"
• The Market Economy vs. The Monopoly

Consumers must stand strong and fight back against these types of abuses from monopolistic enterprises.   If consumers refuse to pay these outrageous prices for poor service, companies like Comcast will have to change their ways in order to survive.  There is only one way to respond to a situation like this.  Refuse to give them your business.