Consumer groups charge Comcast with predatory pricing

Comcast’s recent rate hike for cable modem customers that do not subscribe to programming services has drawn the ire of two powerful consumer lobbies. The Consumer Federation of America and the Consumers Union last week called for the Federal Trade Commission and the U.S. Justice Department to investigate Comcast and other cable company’s broadband pricing practices.

After completing its merger with AT&T Broadband, Comcast increased the monthly monthly fee for cable broadband 30% to 35% for those customers who don’t subscriber to at least basic programming services. Comcast has written off the increase as simple bundling--offering a better price to customers who take multiple services. The consumer groups said the discounts were so steep Comcast is trying to undermine competition from the digital broadcast satellite market.

CFA officials point out that the marginal cost of supplying basic cable is not zero, and as set-top boxes for broadband and programming services are separate there is no way to justify such a discount except predatory pricing.—Kevin Fitchard