PITTSBURGH -- As local cable TV competition increases, Comcast and Verizon FiOS are requiring Pittsburgh-area customers to sign long-term agreements to take advantage of discounts.

Call 4 Action reporter Aaron Saykin said customers who back out of these deals will get hit with a big fee.

Verizon and Comcast are trying to get customers to sign two-year contracts by offering extended discounts on bundled services like TV, telephone and Internet.

Several satellite TV offers also require contracts now -- all of which, if broken, come with huge early-termination fees.

"They're charging them because they can, because it's profitable, because it makes you less likely to use competition and vote with your feet, vote with your pocket books," said Christopher Murray, of Consumers Union.

Termination fees became so unpopular with cell phone customers that Congress considered limiting those charges before the wireless companies lowered them voluntarily.

Call 4 Action asked Verizon FiOS if there was any concern about backlash from customers regarding contracts.

"No," spokesman Lee Gierczynski said. "Most of our customers want to lock into rates for an extended period of time," he said. "In fact, two-thirds of our customers who sign up for services sign up for services over a two-year period."

When asked the same question, Comcast spokeswoman Jody Doherty gave the same answer.

"Judging by the popularity of the two-year agreement, no," she said. "People are jumping at the values."

Comcast said it still offers its discounts for one year without a contract. Verizon FiOS does not.

Both providers pointed out that, unlike cell phone companies, their contracts are optional.

"It's a choice that the customers want to make, and we offer them that flexibility when they choose services," Gierczynski said.

Comcast and Verizon contracts include some provisions that many wireless companies do not allow.

For example, customers have 30 days to change their minds after signing up.

And, if customers move to an area where the service is not available, they can opt out of their contracts without a fee.

"I think if competition were as vibrant as it possibly could be in this marketplace, customers would get those prices improved," Murray said. "They would get that quality of service improved without having to lock into these long contracts."

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December 27, 2007: Call 4 Action: Comcast, Verizon TV Rates Going Up In Pittsburgh Area

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