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Watchdogs: Cable gouges broadband users

 


U.S. consumer groups on Wednesday charged that cable companies were gouging customers who subscribe only to high-speed Internet service but not to cable television, and asked antitrust enforcers to investigate.

The nation's biggest cable provider, Comcast, recently acquired AT&T's cable assets. It then raised prices for those customers who sign up only for high-speed Internet service to $56.95 (Comcast's monthly going rate), a rise of 33 percent on the previous $42.95 charge.

Customers will receive the $42.95 price for Internet service if they also sign up for cable television service, Comcast spokeswoman Sarah Eder said. Basic cable service runs about $12, but services with the most channels cost much more.

The Consumer Federation of America and the Consumers Union asked the Justice Department and the Federal Trade Commission to investigate whether the steep discounts offered when customers purchased both services constituted anticompetitive tying or predatory pricing.

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