Expected Consumer Benefits from Wired Competition in the City of San Francisco

Advances in technology are permitting broadband service providers to enter the residential video market. This has enabled effective competition in the delivery of wired video services, bringing a wider variety of offerings and lower prices. This study uses current population data along with demand and subscription rate data from our 2006 study to develop reasonable estimates of the effects of competition on subscription prices. We estimate the annual savings to consumers in the City of San Francisco will range from approximately $23 million to over $34 million once this competition becomes a reality. The actual total savings may be even greater as cable subscription prices have increased twice since that 2006 study.