The US cable industry generates close to USD 450 per year on average per customer from company-imposed fees, according to Consumer Reports' analysis of nearly 800 cable bills collected from consumers across the US. Researchers said this helps explain why CR’s survey found that nearly six in 10 (59 percent) Americans who encountered unexpected or hidden telecommunication fees in the past two years say the fees caused them to exceed their budgets.
Company-imposed fees, from broadcast TV and regional sports fees to set-top box rental fees, add what amounts to a 24 percent surcharge on top of the advertised price.
Based on the total number of US cable subscribers and these findings, cable companies could be making an estimated USD 28 billion a year from charging company-imposed fees, the same study said.
The average cable bill contains more than a dozen line-item charges, including the base package price, company-imposed fees, regulatory fees, and taxes, creating a jumbled environment ripe for consumer confusion.
