Tuesday, April 17, 2007

Cable Rates Have Risen Again- Where Is All The Money Going?

The gasps heard around the world again belong to cable customers getting their monthly bill. With the recent changing over of years, cable companies felt it timely to increase their prices. But this shouldn't be any surprise, every year as of late has heralded nearly double digit cable bill rate increases. Why should this one be any different? The only problem is that wages don't increase at the same rate as these cable bills. Therefore, every year cable bills take up a larger chunk of the incoming family budget. This wouldn't hurt so much if service was improving and more advanced technologies were being offered. But most of the rate increases are for the same level of service as the year before. If you want extras like digital television, HDTV, or even the electronic program guide, you need to pay even more.
Though another cable rate increase isn't a surprise, the fact that so many families are still paying the exorbitant fees is. If cable was the only option it would be easy to see why families put up with it. But cable is only one option when there are other better options available. Dish Network satellite television is one of the best options. For cable customers tired of paying high fees and getting few channels, Dish Network has proven to be a great solution. Customers get more channels, higher quality service, and more advanced equipment while paying less each month. Most people making the switch, after being separated from cable for awhile, even ask themselves why they stuck with cable for so long.
If Dish Network is able to offer hundreds of channels at a price lower than smaller cable packages, why doesn't cable lower its rates? While it is not possibly to fully answer that question, it can be assumed that part of the reason for high rates is cable's need to update aging infrastructure. Many of us grew up with cable- a system that has been around for many decades. During these decades most of the infrastructure has had only repair work done on it. As technologies have grown and changed, the infrastructure has become outdated. Just like modern laptop computers can do hundreds of times the processing that the room-sized computers could do decades ago, newer technologies can handle and transmit hundreds times more data than older equipment. When you have newer data-intensive technologies trying to transmit data over old infrastructure, you get many problems. Cable companies are finding that they need to replace all the underground lines with newer fiber optics to allow data-intensive programming like HDTV and digital television to be transmitted. This results in exorbitant costs that need to be transmitted to the consumer.
Cable companies also lose money because they are decentralized. Dish Network operates on a national basis, allowing it to cut administrative costs and provide more uniform services to its customers. The great thing about Dish Network satellite tv system is that it still provides local jobs because it needs service technicians and other professionals to do the actual installations. This system still, however, works out to be cheaper for customers than having to pay for entire administrations for each small region, the way cable companies operate.
While it may not be possible to fully know why cable bills are as high as they are, it is possible to save yourself from having to pay the high prices by switching to satellite television.