Basic cable rates have gone up an average of a little more than 21 percent over the past two years, according to a report released Tuesday by the Legislative Audit Bureau.
LAB reviewed the monthly charges for basic and expanded basic service packages provided by 10 video service providers across 17 municipalities in the state between July 2007 and July 2009.
The report found that in addition to the rise in service charges for basic cable, monthly rates for expanded basic services went up an average of 11.5 percent over the biennium.
LAB performed the service review at the request of the Legislature’s Joint Audit Committee, said committee Co-Chair Sen. Kathleen Vinehout, D-Alma.
Vinehout said LAB was monitoring the effects of a bill passed by the Legislature in 2007 that started a state-run franchising process for video service providers to deregulate the industry and increase competition.
“The audit came because … some wanted to get an independent opinion (of the bill’s effects), and I would say the audit shows what they expected; consumers are paying more and getting less,” Vinehout said.
According to an accompanying statement by State Auditor Janice Mueller, the data does not show increased competition among providers has made progress in reducing or slowing the cost increase of either basic or expanded basic cable packages.
Rep. Gary Hebl, D-Sun Prairie, said the results of the audit were not surprising.
“[The audit] shows what we expected. Anybody who has cable knew they raised rates and this just confirmed what they already knew,” Hebl said.
Hebl said he was opposed to the 2007 deregulation bill when it went through the Legislature because he thought it took away a lot of consumers’ rights.
Vinehout said in a statement released Tuesday the Legislature was under the impression the bill would save state families $148 million, but it did not come to fruition.
Hebl said he and Vinehout recently proposed a bill to “repair” the problems that have arisen as a result of the 2007 legislation. The bill, he said, deals with improved consumer protection, funding for public access channels, job creation, increased company accountability and faster repair times for cable issues.
“We can’t let consumers be abused. Our duty as legislators is to protect consumers,” Hebl said. “We need to hold their feet to fire to make sure what they say and what they do matches up.”
According to Vinehout, the bill is currently being circulated for co-sponsorship and has received a lot of support in the Assembly. She said the issue is bipartisan and contentious on both sides of the aisle.
Hebl added the bill will either travel to the Assembly Committee Consumer Protection or the Assembly Committee on Labor for consideration.
Rep. Phil Montgomery, R-Green Bay, co-sponsor of the 2007 bill, said the audit only looked at a very small part of the competition — the basic tier of video service.
He added because technology has advanced rapidly in recent years, costs also increase because of all the new features and packages available.
“What consumers want are bundled services,” Montgomery said. “Does it cost more? Yes, but the services are better.”