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Cable Competition

Submitted by kkenny on March 10, 2007

Category: Biographies
Words: 1958 | Pages: 8
Views: 244
Popularity Rank: 30,619
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Table of Contents








I. Statement of the Problem …………………………………………………….. 4

II. Background Information ………………………………………………………5

III. Description of Methodology …………………………………………………...8

IV. Statistical Analysis ……………………………………………………………...9

V. Conclusions ………………………………………………………………….. 9





















Abstract

At the beginning of January 2005, FCC data states that there were 37.9 million High-

Speed Internet lines deployed in the United States. Over 73 million American households

subscribed to cable television services with 34% of them having digital service

(Leichtman Research Group, 2005, p. 6). Residents in 78 of 120 communities in Wayne,

Oakland and Macomb counties have just one choice for cable service and pay 10 percent

more than their neighbors in communities with competition (Kurth, 2002, paragraph 2).

One company, Comcast Cable of Philadelphia – controls 75 percent of the market with 1

million customers.

Although Comcast Cable controls a large portion of the cable services in Metro Detroit,

they are facing intense pressure from competitors that are advertising lower monthly

cable rates then what Comcast charges. Also, in the areas where Comcast does not have

competition among cable providers, consumers pay higher monthly cable rates and

receive poorer services than those communities that Comcast faces competition

(Alexander, 1999, paragraph 11). To see if this is true, we took a sample of 216 cable

customers...

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