Time Warner Cable logo (Photo : Reuters)
Sens. Bernie Sanders (I-VT) and Elizabeth Warren (D-MA) sent a letter to the Federal Communication Commission (FCC) on Friday, accusing large cable companies of using their monopoly powers to force consumers into paying higher prices on monthly bills. Sanders and Warren argued that mega mergers have given 60 percent of Americans no choice in terms of cable and Internet service providers, allowing them to jack up rates without losing their competitive edge.
The letter was signed by two other U.S. Senators. They were Al Franken (D-MN) and Ed Markey (D-MA).
It explained that as the telecommunications industry becomes smaller, fewer choices have resulted in price increases and often bad service. That has resulted in telecom monopolies.
The written communication mentioned the in-the-works Time Warner Cable (TWC) and Charter Communications merger as a case study, as the former has already boosted prices, according to Huffington Post. Market pressures do not affect it.
Time Warner's modem rental charges have skyrocketed 203 percent since the tech device was first made available in 2012. The politicians' note observed that consumers are often in the dark about different fees that are added to their monthly bills, according to ArsTechnica. A merger would worsen the situation.
TWC responded regarding the fees the senators cited that TWC gives advance notice of any price increases. Its customers can avoid the lease fee by buying a compatible modem at a retail price.
The four senators noted that it is not surprising that Internet and cable provides rank last in customer satisfaction compared to other companies in other sectors. There is no incentive for low prices and good quality service.
Sanders and his coworkers requested that the FCC to publish various pricing data for cable and broadband services, including the average prices for each U.S. state and cable provider, and urban and rural areas. Then customers can make price comparisons.
