ISPs Raise Broadband Costs -- And Advocates' Ire

Broadband in the U.S. already costs more than in many other countries. And it's about to get even more expensive.

The country's largest cable provider, Comcast, plans to raise rates for customers in the New Jersey area starting next month. Letters from Comcast posted at Broadband Reports show that subscriptions for the company's "economy" 1 Mbps downstream service and the "performance" service of 12 Mbps downstream will both increase by $2 a month -- for the former, to $26.95; the latter, $40.95. Comcast hasn't yet announced any price increases for parts of the country other than New Jersey, a spokesperson tells MediaPost. AT&T also recently announced a round of price increases, according to Broadband Reports. Not surprisingly, news of the rate hikes isn't going over well with consumer advocates. Free Press issued a statement this morning arguing that the price increases boost the case for new rules.