Will companies jack up Internet prices to make up for lost revenue due to cable price cap?

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VANCOUVER (NEWS1130) – Your Internet bill could be going up after yesterday’s ruling about $25-per-month cable packages.

Some analysts believe cable companies will up the cost of Internet to maintain their profits.

The CRTC also told cable companies customers will have the freedom to add on individual or small bundles of channels under the “pick and pay” model.

But because of all this, Desjardins Securities analyst Maher Yaghi expects TV providers will look to make up some of the lost revenue by increasing the cost of Internet service.

“Because we’re moving into a more online-type environment, the value that the consumer puts on that Internet connection will increase. Hence, we believe the companies will be able to charge more for Internet.”

This is a concern for David Christopher with Open Media. “Canadians, for Internet, are already paying some of the highest prices in the industrialized world. Certainly, we want to see those prices start to go down, rather than start to go up.”

However, Yaghi thinks most customers will see some cost savings, as they will no longer need to pay for as many television channels as they have in the past.

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