(30 October 2008 9:00 pm)

MUMBAI: The Federal Communications Commission (FCC) of US has expressed concern over the plans by several cable companies to raise their rates next year.

Cablevision Systems Corp. had announced on Wednesday an average hike for cable TV service of 3.5 per cent. Even Comcast and Time Warner Cable are expected to raise the fee.

Cablevision had said that the price increase on video services falls below inflation and that it is also building a Wi-Fi network that its Internet subscribers will be able to use for free.

The trend could hurt already-battered consumers. "Over the last decade, average cable rates have more than doubled. And now cable companies are charging consumers more but consumers are receiving less," AP quoted FCC spokesperson Mary Diamond as saying while referring to cable moving some analogue channels to more expensive digital-only tiers.

New York-based Verizon Communications Inc. already had raised rates by 12 per cent in February on its FiOS TV Premier tier, the company's most popular video plan. It will revisit rates again in early 2009.

Philadelphia-based cable company Comcast Corp plans to raise rates by an average 3.7 per cent on customers who buy multiple services in a discounted bundle.

Similarly, Time Warner Cable Inc. acknowledged it will raise rates next year, without giving details.

Atlanta-based Cox Communications also said it plans to raise rates for 2009 but needs time to calculate the average increase.