Will cable TV prices drop now that so many people are choosing satellite?
Not likely any time soon. The cable companies have recently completed or are in the process of refurbishing their distribution networks to support digital cable services. In most cases, these improvements have been paid by sharp increases in user fees, for which users of analog cable services will receive little or no benefit. The cable companies are depending on the sale of new digital services to existing analog cable users to help recover these expenses. Many more people are now using satellite services in comparison with even five years ago, with much of this increase from subscribers in rural areas, who do not have access to cable television, and to individuals who are moving into a new (for them) home and choose to have satellite service installed in place of cable. Even if the cable is in place and active when someone moves into a new residence, some cable companies charge $50 or more simply to set up the account. In fact, it costs cable companies more to disconnect service than
