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CU slams cable

By John Eggerton -- Broadcasting & Cable, 11/27/2002 3:00:00 AM

Consumer Reports publisher the Consumers Union sent out an electronic mail Tuesday slamming cable for price hikes and the Federal Communications Commission for failing to "lift a finger to help consumers harmed by cable's monopolistic practices."

Specifically, it criticized the commission for refusing to approve the EchoStar Communications Corp./DirecTV Inc. merger or to grant Northpoint Technology Ltd. licenses for its terrestrial service, which it said would have provided a "real challenge" to cable.

It dismissed cable arguments that its price increases cover costs of upgrades or their increased programming costs, or that the increases are less than the inflation rate, or that satellite already provides competition.

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