Are we overpaying for internet?

I think the reason why the cable companies aren't too concerned with cord-cutters (people who cancel their cable TV service and use Netflix/Hulu instead) is because these same cable companies who have a near-monopolby on TV also have a near-monopoly on internet service. In my neighborhood, I have only 2 options for internet: Comcast or AT&T. But the fastest speed that AT&T offers in my neighborhood is 6.0 mbp/s which is a joke. So every month we send $72 to Comcast, just for internet, no cable TV. It is currently the biggest rip-off in my life.

A couple months ago at the urging of my wife, I ordered cable TV from Comcast, but when the box arrived a few days later, I realized that setting up the box would require a bit more time & enrgy than I was willing to invest. (The cable outlet is on the opposite side of the room from our TV.) So I called Comcast and asked for them to send out a technician to run the cable line across the room. Comcast wanted an additional $50 for installation. I explained that I wanted them to waive the $50 fee. They politely refused.

Whoops! What Comcast doesn't know about me is that I'm too cheap to pay $50 for installation! And my wife agreed! So I sent their box back to them and cancelled the service. Comcast probably lost several thousand dollars of my business over a measly 50 bucks.

Memo #1 to Comcast: give away the first few samples of crack cocaine for free before you start charging an arm & a leg.

Memo #2 to Comcast: my rabbit ears deliver a crisp 1080p HD signal. For free.

Quote: reno

Memo #2 to Comcast: my rabbit ears deliver a crisp 1080p HD signal. For free.

Have you seen a doctor about that? :)

Quote: Nareed

Have you seen a doctor about that? :)

Ha! No, I haven't been to the doc, but it reminds me of the episode when Gilligan's dental fillings were recieving radio broadcasts.

Quote: reno

So every month we send $72 to Comcast, just for internet, no cable TV. It is currently the biggest rip-off in my life.

Memo #2 to Comcast: my rabbit ears deliver a crisp 1080p HD signal. For free.

The cost for internet in my city for first year with Docsis modem rental (fees additional < $3)
$39.99/mo = 25 Mbps
$49.99/mo = 50 Mbps
$74.99/mo = 75 Mbps
Price goes up $5/year for 2nd and 3rd year.

Try plugging your coaxial cable into your TV (if the TV is 2006 or newer). You should be able to tune in local channels at no extra charge without a setup box (until cable companies change policy). While you can receive some channels with rabbit ears, you may get more channels (CW, MyTV, PBS, Telemundo, Univision, and other assorted stuff).

Quote: Pacomartin

The cost for internet in my city for first year with Docsis modem rental (fees additional < $3)
$39.99/mo = 25 Mbps
$49.99/mo = 50 Mbps
$74.99/mo = 75 Mbps
Price goes up $5/year for 2nd and 3rd year.

Try plugging your coaxial cable into your TV (if the TV is 2006 or newer). You should be able to tune in local channels at no extra charge without a setup box (until cable companies change policy). While you can receive some channels with rabbit ears, you may get more channels (CW, MyTV, PBS, Telemundo, Univision, and other assorted stuff).

Really...I didn't know that. I'll have to try that, although I think we get all of your parenthesized channels above with just the rabbit years.

Quote: AcesAndEights

Really...I didn't know that. I'll have to try that, although I think we get all of your parenthesized channels above with just the rabbit years.

It is possible that you can get all the channels with rabbit ears depending on where you are located. For us, it is 43 miles to the TV antennas, and there is a mountain in between. We couldn't get channels over the air with a 30' antenna.

The FAA forced the cable TV to carry local broadcast channels in the 1970's and 1980's since they realized that cable could easily put broadcast out of business. With the plans to go digital, they forced the TV manufacturers to include a new type of tuner (the acronym is a QAM tuner) that could tune in the digital signals and the new HDTV from cable. They have been mandatory since 2006.

With digital signals it became easy for cable companies to scramble all channels (not just HBO, Showtime, and other premium channels). However, the legal requirement to transmit unencoded the local channels remained. Cable companies began to fear that people would purchase internet, plug in the local TV channels, and supplement with Netflix, Hulu, DVD's, Roku boxes, etc.

The cable company's approach to this business issue was two fold. They basically will not give out any information that these channels are available for free. Technically the government requires them to provide the signal, but not to provide any assistance or information. Most people do not know that they are there.

The other approach was to lobby the government to change the rules. About 10 weeks ago the FAA complied, and gave them permission to scramble all channels including local ones, but they are required to give away setup boxes for the first two years. It's not clear what the cable companies will do. Personally, I think that they will just wait for two years and then begin scrambling all the channels.

The cable channels are trying to produce as many TV series as possible. The ones in the last few years are frequently better (and with larger budgets) than the network series. At the same time Monday Night Football moved to ESPN. By making national cable stations more desirable, fewer and fewer people are satisfied with network TV.

Many people would favor a distribution system involving ethernet cable, and get rid of coaxial cable (round black cable) which uses radio, and do away with broadcast entirely. The idea is that the entire spectrum would be free for mobile smart phone applications. The House of Lords in the UK passed a resolution in favor of Britain moving in that direction in 10 years.

Quote: reno

my rabbit ears deliver a crisp 1080p HD signal. For free.

Well my local cable company decided to begin scrambling the local over the air broadcast channels as of April 8. You now require a setup box with every television. It may cause a renewed interest in antennas.

In a new development, they are now selling HBO/Cinemax to people with just internet service. Normally the cable companies would require you to purchase the normal list of commercial sponsored TV before you could purchase any commercial free channels.

It may signal a breakdown in the old structure. People will be able to purchase only what they want (like Regional Sports Networks, HBO or Cinemax, or simply Movies) without having to buy dozens of commercial saturated channels that they don't want.

For basic service my cable company charges

$59.99/mo Signature Digital Cable 225 all-digital channels Including 71 HD channels* Free ON DEMAND titles & digital music
$39.99/mo 25 Mbps Internet Price includes modem rental and wireless router
$79.99/mo for both + $12 per High Definition setupbox

Quote: Pacomartin

Cable companies began to fear that people would purchase internet, plug in the local TV channels, and supplement with Netflix, Hulu, DVD's, Roku boxes, etc.

They have reason to fear this. I didn't plan to get cable until my remodel is done, but now I m considering never getting cable. <$20 gets you Hulu and Netflix, enough to keep me entertained. My only thing is I want to find streaming FNC, Fox Business, and CNBC. There is a gadget that can get over-the-air and play via my wi-fi right to the TV. If I can stream those 3 I will have 90%+ of what I watch and the remaining 10% isn't worth the $40 or so in savings for little time I would watch.

Quote: AZDuffman

They have reason to fear this. I didn't plan to get cable until my remodel is done, but now I m considering never getting cable. <$20 gets you Hulu and Netflix, enough to keep me entertained. My only thing is I want to find streaming FNC, Fox Business, and CNBC. There is a gadget that can get over-the-air and play via my wi-fi right to the TV. If I can stream those 3 I will have 90%+ of what I watch and the remaining 10% isn't worth the $40 or so in savings for little time I would watch.

Broadcasters worry about 'Zero TV' homes

RCN in Chicago/Philly/New York/Washington is trying to cater to these customers. They are offering the following service
Internet with basic TV: for $39.99 Offer Year 2: $44.99 Year 3: $49.99 (Modem not included; $5 additional monthly fee) ($10 per HDTV setup box)
Internet without basic TV: Same Price

So basically they are giving out standard definition setup boxes for free if you purchase 25 Mbs internet. Once the box is in your hose, they are hoping you will purchase movies on demand, or be persuaded to add HBO/Cinemax or Showtime/The Movie Channel or Stars without necessarily purchasing the commercial TV stations.



The End of Free TV is he another article about Fox threatening to become a cable network if Aereo is not stopped. Once again, the networks are putting the signal in the air. You can all watch it with rabbit ears. What difference does it make if someone picks it up I not sure why the networks don't put their shows on their websites the same day they air them on TV. Who would want Aereo if the shows were available for free?

Quote: reno

So every month we send $72 to Comcast, just for internet, no cable TV. It is currently the biggest rip-off in my life.

That seems extraordinarily high considering the offer from RCN for TV (70 HD channels) plus internet for $79.99 (@25 Mbs). Granted you probably have to pay $5 for the modem, and another $5 if you want to rent a router (or you can purchase your own).

Quote: Pacomartin

The End of Free TV is he another article about Fox threatening to become a cable network if Aereo is not stopped.

I think Fox is bluffing. They're not going to eliminate free over the air broadcasts. Even if 90 percent of Americans pay for satellite & cable TV, that still leaves 10 percent who use the free broadcasts. Does any TV station want to see their ratings fall by 10 percent? They'll have to lower their ad rates. The local affiliates will balk, regardless of the network's views.

Quote: Pacomartin

That seems extraordinarily high

Tell me about it! By the way, it's no longer $72. They lowered it to $64 because I finally bought my own modem. But $64 is still a terrible rip-off. I could switch to AT&T, but they only offer 6mb/s in my neighborhood, which is way too slow. (When I read that on AT&T's website, I didn't believe it, so I called them up and they confirmed it.) I have a friend who lives 5 blocks away and he gets his internet from a company called Astound. But Astound doesn't serve my neighborhood! Comcast has a monopoly and they know it.