A group of United States senators, led by Bernie Sanders, requested an investigation by the Federal Communications Commission (FCC) into how cable and broadband companies are charging consumers.
Sanders wrote in a latter addressed to Tom Wheeler, chairman of the FCC, that only 37 percent of Americans currently have more than one choice over which high-speed broadband service to sign up with.
Because of this de facto monopoly in a majority of the country, cable and broadband companies "are able to charge ridiculous prices and add hidden fees onto a customer's bill," stated Sanders.
The other senators who signed the letter to Wheeler are Elizabeth Warren, Edward Markey and Al Franken.
In the letter, the senators specifically named Time Warner Cable, the target of a recent acquisition proposal by Charter Communications, as a company that should have its pricing schemes checked.
Along with steeply increasing rates, customers are mostly unaware that there are various fees that are being added to the monthly charges due to bills lacking transparency. As one example, Time Warner Cable started monthly charges for the rental fee of cable modems back in 2012 for $3.95. The company then increased the monthly rate to $5.99 the following year, and this year, the monthly rate is now $8, representing a 203 percent jump in a time of just three years, in addition to the monthly charges for the broadband service.
A spokesperson for Time Warner Cable commented on the charges that were cited by the senators in the letter, stating that the company notifies its customers in advance if there will be any increase in charges. In addition, customers can choose to avoid paying modem rental fees by buying a modem outright.
The senators are asking for the FCC to collect pricing information, not to take any definite action. They think that Americans should have an understanding of the prices of the products and services they pay for, and what other consumers from other areas are paying to avail of the same service.
"Americans deserve affordable access to the Internet, not hidden fees and rising prices," Sanders said. "I hope Chairman Wheeler will take action and continue to defend American consumers."
Photo: Abraham Williams | Flickr
