Monopoly Michigan Cable Service - Essay Example

Governor Granholm of Michigan signed the legislation document called Public Act-480 on Dec 21, 2006, which aimed at providing healthy competition for getting video services in the state of Michigan. While Michigan Public Service Commission is responsible to implement the act, to oversee that the franchisee agreement is uniform for all the entrants, the agency has no authority to regulate any service provider under this act, as a public utility provider.However, even with the limited powers of the agency, it has the authority to review all disputes between consumers and service providers, between two providers, between the franchisee and its provider entity.

Methods to make the market more competitiveAlthough AT&T as well as Comcast may be happy with the legislation, they admit that the prices offered to consumers, for either bundled packages or individual packages, have shown an increase, after the legislation. Hence, it is essential for the following action, which should be taken by the regulatory authority, MPSC, to monitor and suggest effective ways for bringing in healthy competition.Although MPSC is supposed to collect and forward the data on pricing to the Governor, they seem to be lacking on this.

MPSC should compile the data with regard to the households that get services from AT&T as well as Comcast, to know whether they have followed the requirement of ACT-480, which warrants that they provide cable service to at least 30% of their telephone subscribers.MPSC should prepare a list of new entrants who are desirous of making the services available in the area, so that the opportunity of uniform franchisee policy agreement is available to them as well, which will increase the competition in the area.

The agency responsible for overlooking and monitoring of the act should take their action seriously to help to make the act achieve its goal, as the legislators intended. However, the implementing agency may presently be helping service providers, rather than working for the consumer benefits. (Harrison, 2009)Price setting options.While AT&T and Comcast offer a range of services to customers, there are other networks like Dish Network and Direct TV, etc. that provide satellite television services to consumers.

However, looking at the aggressive U verse services from AT&T, consumers have a wide choice of price options to choose from. As a single option will not be suitable for all customers who have varied demands and choices to suit their viewing tastes, the following guidelines can help consumers to select the best option that suits their needs.Consider the whole package that includes the installation charges as well as the free packages offered by the provider, along with the additional subscription details, to reach a certain decision.

Bundle services may not be the right option, as consumers may need only a part of the services included in the bundle package. Hence, analyze all the parts of the bundle individually.