New year rate hikes from Comcast and AT&T explained
Comcast is ringing in the new year with a 3.6% nationwide rate hike, and AT&T isn't far behind. Here's what's going up on your TV, internet, and equipment bills — and how to push back.
1 Comcast's Nationwide Rate Hike
Comcast is ringing in the new year with a rate hike to the tune of 3.6% nationwide. The price increase spans a wide variety of services including broadcast television, local sports, TV boxes, and remotes. And, to capitalize on consumers’ move toward online streaming, Comcast is also increasing the price of high-speed internet plans.
2 What's the Increase?
According to a Comcast PDF outlining new rates in Georgia, the price of a basic TV package will jump from $30 to $35. For broadcast TV, consumers can expect to pay 50% more for a total of $15 per month. Internet service will go up by $3 and the fee for a returned payment goes from $10 to a whopping $30.
In Philadelphia, Comcast will bill consumers $12.70 for broadcast television, a 54% increase. The regional sports fee for consumers in Philly is going up too: $8.75 for local sports (a 6% increase).
3 Equipment and Broadband Costs Climb
In addition to programming rate hikes, Comcast is also raising prices for equipment like broadband modems, TV boxes and remotes.
And, just when you thought you were saving money by switching to streaming services, Comcast will now hit you with the higher cost of its broadband plans. So despite the trend to cut the cord, Comcast’s broadband business is booming; the company’s net profits were up by 11.5% during the third quarter this year.
4 AT&T Raises Prices Too
Comcast is not the only one raising prices. AT&T’s DirecTV customers will see major price hikes this month. Xtra and Unlimited plans will cost $7 more per month and fees for regional sports will go up as much as $2 per month. AT&T U-verse customers will also see an increase — anywhere from $3 to $7 per month. The broadcast-TV fee will also go up, depending on where you live.
5 Why Prices Rise — and How to Fight Back
Comcast released a statement explaining their move. “Rising programming costs — most notably for broadcast TV and sports — continue to be the biggest factors driving price increases for all content distributors and their customers,” according to a statement from Comcast. “While we absorb some of the increased programming costs, they have a significant impact on the cost of our services.” With Comcast’s net profits at $3.2 billion, it’s not hard to understand who is losing in this scenario: the consumer.
Frustrated consumers can start the new year right. Send Billshark your monthly internet, cable and wireless bills, and we’ll lower them in minutes. There’s no risk and, most importantly, you’ll save time, money and a lot of energy.
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Frequently Asked Questions
How much is Comcast raising prices in the new year?
Comcast is raising prices by 3.6% nationwide. The increase covers a wide range of services, including broadcast television, local sports, TV boxes, remotes, and high-speed internet plans. In Georgia, a basic TV package jumps from $30 to $35, broadcast TV rises 50% to $15 per month, internet goes up $3, and the returned-payment fee climbs from $10 to $30.
Is AT&T also raising prices?
Yes. AT&T's DirecTV customers will see major price hikes, with Xtra and Unlimited plans costing $7 more per month and regional sports fees going up as much as $2 per month. AT&T U-verse customers will also see an increase of anywhere from $3 to $7 per month, and the broadcast-TV fee will rise depending on where you live.
Why does Comcast say it is raising rates?
Comcast attributes the hikes to rising programming costs. In its statement, the company said rising programming costs, most notably for broadcast TV and sports, continue to be the biggest factors driving price increases for all content distributors and their customers. It added that while it absorbs some of those costs, they significantly impact the cost of its services.
How much did the Philadelphia broadcast TV fee go up?
In Philadelphia, Comcast will bill consumers $12.70 for broadcast television, a 54% increase. The regional sports fee is rising as well, reaching $8.75 for local sports, a 6% increase. These regional charges are in addition to the equipment and broadband price increases Comcast is applying across its services.
How can I lower my cable, internet, and wireless bills?
Frustrated consumers can start the new year right by sending Billshark their monthly internet, cable, and wireless bills. Billshark will work to lower them in minutes. There is no risk involved, and most importantly, you will save time, money, and a lot of energy that you would otherwise spend negotiating the increases yourself.
