Comcast announces rate hikes effective Aug. 1

Cable giant Comcast plans to raise prices nearly across the board for Yuba-Sutter residents for cable television and Internet service, effective Aug. 1.

The Philadelphia-based corporation posted public notices in the Appeal-Democrat last week notifying rates would rise for its monthly cable and Internet rates, though two bundle packages will actually drop by about $20.

Limited basic cable service, for example, will go from $15.40 to $16.85, while the digital premier package will go from $66.95 to $69 a month.

A basic Internet package will go from $24.95 to $26.95, while a "performance" Internet package will rise from $57.95 to $59.95.

Some customers at the company's Yuba City office Thursday said they weren't aware of the pending price hike, though not all of them were overly surprised, either.

"It's gone up once every year for awhile now," said Anthoney Stark, 42, of Marysville. "If they're adding more channels, I don't mind it."

But Lori Switt of Yuba City reacted with dismay as she surveyed the list of price changes.

"Each one of them added up ..." she said. "We might have to switch."

She said paying more for cable and Internet is a tough pill to swallow when her boyfriend, a state worker, may have his pay reduced because of budget squabbles and she is only working part-time.

In a statement, Comcast officials said investments in new equipment and technology required the rate hikes, which in the case of Internet offerings were the first in more than five years.

Customers who bundle digital premier-level service and Internet or digital premier and phone service will see a reduction, from $195.10 and $197.10 a month, respectively, to $174.94 for either package.

The price hike comes on the heels of Comcast dropping analog services in the Mid-Valley last month, angering many residents who said they hadn't gotten proper notice. John Simpson, consumer advocate with nonprofit group Consumer Watchdog, said it was particularly galling for Comcast to raise its most basic cable package by the highest percentage, from $15.40 a month to $16.85.

"In times like these, when people are hard-pressed, companies ought not to stick it to their basic cable customers," he said.

He also questioned the supposed upgrades in equipment, noting Comcast should take any money it makes in higher rates and apply it to customer service instead. Comcast is frequently listed among companies with the highest levels of customer dissatisfaction.

Comcast officials pointed out that compared to other forms of entertainment, their services remaining a bargain. They added the cable company will add 50 new channels to its digital service next month in the Yuba-Sutter area.

Statewide, the average price hike is 3.8 percent. As many as half of Comcast's customers are paying a promotional offer and won't see their price increase, unless it's for services outside the offer.

Comcast has 23.5 million cable customers, 16.3 million high-speed Internet customers and 7.9 million Comcast Digital Voice customers nationwide.

In the first quarter of this year, Comcast reported a 3.8 percent increase in revenue to $9.2 billion compared to the same quarter a year earlier, while operating income increased 6.8 percent to $1.9 billion.

CONTACT Ben van der Meer at 749-4709 or bvandermeer@appealdemocrat.com.

Here are the changes in monthly prices for various Comcast offerings, taking effect Aug. 1 in Yuba, Sutter and much of Colusa counties:

Limited basic service $15.40 to $16.85

Digital starter service $58.99 to $60.99

Digital premier $66.95 to $69

Digital video recorder $8.99 to $9.99

Economy Internet (with TV or phone) $24.95 to $26.95

Premier-level digital + Internet $195.10 to $174.94

For comparison, satellite TV services Dish Network and DirecTV have limited-time promotional deals on their websites*:

Dish Network: Digital package of 120 channels, $24.99; digital package of 200 channels, $39.99. Price jumps to $39.99 and $54.99 a month, respectively, after first year.

DirecTV: Digital package of 150 channels, $29.99; digital package of 210 channels, $34.99. Price jumps to $58.99 and $63.99 a month, respectively, after the second year.

*Comcast's website lists an offer for its digital preferred package for $39.99 for six months.

Source: Comcast, DirecTV, Dish Network