Customers of Cablevision Systems will face barely any rate increase for the new year, with the cable operator increasing bills an average of just 1.1%. The company will not increase prices on most packages including basic cable, digital cable, telephone and high-speed data services. It will put through small increases on cable equipment and the regulated broadcast basic tier.
Cable operators typically increase prices 4-6% per year. For 2006 Cablevision increased rates around 2.3%. The company says that the need for rate increases is diminished by its increasing success in selling profitable telephone and data services. However, the company also faces increasing competitive pressure as telco Verizon targets some of its best markets to launch its own video services.