Comcast price hike on Cable TV service – 3.8% increase effective August 1

July 2, 2010— Comcast has announced last Friday a price hike of 3.8% on its cable TV services, weeks after concluding its digital cable conversion and introduction of several high-definition channels. It will also raise broadband internet fee for the first time in five years at an average rate of $2 every month. The price increases will take effect on August 1, 2010.

According to Andrew Johnson, Regional VP of Comcast, the price changes are mainly due to the company’s technological improvements and apparent business costs. They have been upgrading their infrastructure to provide better service for its customers.

The recent digital conversion freed up bandwidth that provided more digital and high-definition channels to Comcast subscribers. Extended Basic users however, also needed digital conversion boxes to continue receiving broadcasts from the company. Also, Comcast had launched 81 new cable programs in high-definition format to the Sacramento area including some networks that are already existing like Animal Planet and Comedy Central.

The cable giant is now inviting customers to try its digital TV service. For instance, they are cutting costs in the San Jose area of $10 from its Digital Economy (TV only) plan from $39.95 to only 29.95; a rate still more costly than what Satellite TV providers offer, under a satellite TV comparison.

Subscribers of the giant cable company are not very happy with the additional subscription fee of $1.26 to $1.95 every month. Those who are tied up with promotional deals on the other hand, are not subject to the change. Only those services not covered by the promotion may be subject to the increase.

Price changes vary in different locations. Below is a sample of the price hikes in San Jose area:

• Digital Economy (TV only) is cut from $39.95 to $29.95.
• Limited Basic Service will increase from $15.65 to $17.13.
• Digital Premier will increase from $66.95 to $69.
• Movie channels will increase from $18.99 to $19.99.
• Economy Internet (without TV or voice) will increase from $38.95 to $40.95.