Is There a Need to Break Up Satellite and Cable Company Monopolies?

I remember it just like it was yesterday in 1984 when the government broke up Ma Bell into several different companies. It was the right decision because it is unfair for any company to monopolize its perspective area of business. There are two businesses that I can think of that still operate somewhat like a monopoly; cable and satellite companies. The only thing about it is that these two business entities are not monopolizing the industry to the extent that Ma Bell did.

Now the two companies that I am talking about will not be mentioned by name but by innuendo. For years a particular cable company was dominate in both the introduction and maturity stage of pay television. Its rates were expensive long before bundle service packages existed. In the markets where this cable provider was present there was no competition, which gave this company the power to increase its rates at will. Customers were really taken advantage of. Those customers who decided that they no longer wanted to use cable service were forced to switch to satellite, which they had to purchase new equipment. I do not understand why some cable companies have been allowed to be sole pay television providers in certain areas. This type of activity has gone on too long without some type of government intervention. I was once a loyal cable customer until I became dissatisfied with my service. Unfortunately, since I lived in an area where there was only one cable service provider I eventually ended up switching to satellite. Not only did I have to purchase new equipment but I also had to pay a new activation fee, which was around $100. Now although there are currently two satellite providers yet the equipment that they use is not compatible. Another fact about satellite service is that in most cases there is a 2-year contract. If you become dissatisfied with one satellite provider, you have to fulfill the 2-year commitment for the service. In order to switch to another satellite service the customer will have to purchase new equipment all over again.

Both cable and satellite companies know how vulnerable customers are when it comes to pay television service. It is quite evident that the majority of television programming is slowly moving to pay channels. In the next few years, it will be impossible to watch sporting events, continuous news coverage, or reality shows without having some type of pay television service. There needs to be some type of government intervention that will put an end to these lucrative monopolies that cable and satellite providers have enjoyed for so many years.