On July 1st cable companies are required to offer set-top boxes with CableCARD support instead of the closed systems they offer now. The reason? To give the consumer greater choice. Don't like the cable companies set-top box or DVR? Just go to your local electronics store and pick up your own. Don't like the monthly "rental" fee the cable company charges for the set-top box? Buy your own.
As you can probably imagine, the cable companies don't like this setup too much because it will eat into corporate profits. No more rental fees, fewer people using video on demand services, fewer eyeballs seeing the channel guide advertising, etc. Well, the National Cable & Telecommunications Association has come forward and declared that next January customers are probably going to see rate hikes.
"There's nothing in these decisions [FCC ruling] to stave off a $600 million set-top box tax likely to affect the great majority of cable customers while providing no benefit to consumers."
"No benefit to consumers"? That just doesn't fly. Consumer choice almost always leads to better products and lower prices. As a recent Tivo Series 3 owner, I'm extremely happy with dumping the Comcast DVR for a CableCARD totting TiVo.
The rate hikes are another tactic to scare off consumers and the FCC from imposing the CableCARD requirement. Nothing more.
