The company “provides specificity about and detail of all charges on its bill,” he added. Spokesman said that fee increases “reflect the increased cost of providing services, including ever-increasing costs to access programming content, the growing cost to maintain and upkeep the infrastructure of a robust broadband network and the rapidly rising costs of supporting our customers’ increased demand for bandwidth through greater internet usage and over-the-top video content.” When possible, he said, the company seeks to minimize the increasing costs’ impact on consumers. Spokeswoman reached for comment said that “rising programming fees are a large driver in rising costs.” “We break out those costs on bills to help educate customers to the impact rising content fees have on their bills,” she said, pointing to a company website that explains programmers’ fee increases. “Spectrum billing is simple and straightforward, with no modem fees or data caps on our internet plans.” Includes any applicable taxes and regulatory fees in the monthly price of the wireless and home phone services, and its broadcast TV surcharge “reflects the continually and rapidly rising cost of local broadcast stations,” a spokesman said. Spectrum’s parent, Charter Communications The primary drivers of costs continue to be sports content and local broadcast retransmission fees, and we try to be transparent by indicating that on the bill.” ”Ī Cox Communications spokesman said: “Unfortunately, the cost of content continues to rise at unsustainable rates, something that is becoming clearer with recent streaming video-service price increases once they have gained initial share. “Spectrum parent Charter Communications’ broadcast TV surcharge ‘reflects the continually and rapidly rising cost of local broadcast stations,’ a spokesman said. “These companies take seriously the responsibility to provide their customers with clear and relevant information related to the services they enjoy, and work diligently to develop and use consumer-friendly ways of conveying such information, including websites, apps, delivery of monthly itemized statements and more,” a spokesman for the Internet & Television Association, a trade group, told MarketWatch in a statement. “But it sure seems like the consumers are left holding the bag.”Ī national survey published by the nonprofit in January found that 69% of consumers who had used cable, internet or phone providers over the previous two years had experienced “hidden or unexpected fees,” and 59% of customers who reported facing such fees said the added expense had made them blow past their budgets. “We acknowledge that yes, their costs are going up,” Schwantes said. Regional sports fee and broadcast TV fee cost a combined $2.50 a month in 2015, the organization said by way of example, but now cost a monthly $18.25. But it sure seems like the consumers are left holding the bag.’ ” -Jonathan Schwantes, senior policy counsel for Consumer ReportsĪnd fees are only going up, Consumer Reports warns. “‘We acknowledge that yes, their costs are going up. Other additional fees might include government fees and taxes, as well as optional charges for premium services. Even in what appear to be fixed-rate contracts, he added, companies sometimes allow themselves “wiggle room” in the fine print to increase fees.Ĭommon company-imposed fees include regional sports fees, set-top box rental fees, cable modem and/or router fees, administrative and convenience fees, and installation fees, the report said. “A lot of times, people don’t know these fees exist,” report author Jonathan Schwantes, senior policy counsel for Consumer Reports, told MarketWatch. Companies sometimes offer inaccurate, confusing or partial details about their fees, the group charged, including misstating that some fees are government-mandated. Company-imposed fees accounted for $37, government fees and taxes were about $13, premium services were $9 and miscellaneous fees were $1, it found.Ĭonsumer Reports argues that these additional fees are often slapped on consumers for items that could be classified as a cable company’s basic “cost of doing business” - for instance, a “broadcast TV fee” meant to account for the cost of getting programming from broadcasters - and often aren’t made obvious to consumers. concluded: While the average monthly cable bill totaled $217, just under $157 of that amount comprised the base package price. These company-imposed fees effectively tack a 24% surcharge on to the price advertised, the consumer-advocacy group’s analysis of almost 800 cable bills in the U.S.
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