In an open letter addressed to Federal Communications Commission Chairman Tom Wheeler, Democratic presidential hopeful Bernie Sanders (I-Vt.) and fellow senator Elizabeth Warren (D-Mass.) accused leading cable providers of a few things many a consumer has accused them of in the past – monopolies, exorbitant price hikes, and good ol’ power plays in general.
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“The recent increased concentration in the cable and Internet industries has created a de facto monopoly where substantial price increases have become the norm”, Sanders wrote in a press release.
“Americans deserve affordable access to the Internet, not hidden fees and rising prices”, Sanders said. Currently, America ranks 25th worldwide for broadband speed, and we pay more for poorer quality broadband than customers in Slovakia, Estonia, South Korea, and the United Kingdom.
In the letter, the Senators stress that the absence of rivalry amongst service providers is permitting cable and telephone organizations to raise the charges for service with no apprehension of losing business.
In a statement accompanying the letter, Sanders said the FCC investigation “would help policymakers evaluate the impact of corporate mergers, such as a proposed deal involving Charter, Time-Warner Cable and Bright House Networks”. In a letter sent by the group this week, the Senators use the example of Time Warner Cable increasing modem rental fees by 203 percent over a three-year period – a change that customers may not have been aware of when their monthly bill went up. Comcast was as of late repelled by the FCC and FTC in its endeavors to secure Time Warner Cable for $45bn (£29.05bn).
The Senators are calling on the FCC to investigate how much Americans pay for broadband, based both on state and provider, as well as the split between prices paid by those in rural and urban parts of the country.
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“The Commission’s collection of pricing information is critical to upholding its mission to protect consumers and promote competition, and to deploy broadband across America”, the Senators wrote.
