I forget who asked the question about choosing satellite or cable. But the 
following is some info from Consumer Reports on what to think about when 
choosing cable or satellite. It list general facts about each. They haven't 
done a recent comparative review of the two choices, though, to tell you which 
is the better deal, but that seems to depend on your needs (for  basic channels 
vs. HD, costs, premium on-demand, etc). I use Consumer Reports quite a bit for 
an early source of info when i'm making buying choices. I'll see what other 
reliable sources of advice may be out there.

This info is up-to-date, published October of this year. There is a nice 
pros-and-cons summary at the end that might help.

keith   

******************************

I. Television service - How to choose among cable, satellite, or fiber optic TV 
service providers


Even if you're not in the market for a new TV, you might be wondering whether 
it's time to change your TV service. Ads from cable and satellite companies 
promising more HD programming, improved picture quality, easy recording, and 
more could tempt you to upgrade your package or even switch providers.

Phone companies might be pitching you TV service too. Over the last year, 
Verizon and AT&T began slowly rolling out fiber-optic networks that can handle 
TV services along with voice calls and Internet access. Verizon's service is 
called FiOS, and AT&T's is U-verse. You might see such services referred to 
generically as fiber to the home, or FTTH. Verizon and AT&T are now selling TV 
service in limited areas. It's unclear whether they'll ultimately offer it in 
all the markets where they sell phone service.

Still, the prospect of more choices for viewers, plus more competition for 
cable and satellite providers, is a plus for consumers. Many cable customers 
might welcome another alternative, given their gripes over rising rates.

Cable rates have almost doubled over the last decade, according to the Federal 
Communications Commission. Increases were lowest in the few markets with more 
than one cable company.

Price isn't the only bone of contention for consumers. Despite the steady 
increase in HD availability, there still isn't enough programming for HDTV 
owners. Nearly 70 percent of the cable and satellite subscribers we surveyed 
characterized availability of HD content as average or poor and only 7 percent 
said it was excellent.

In contrast, the vast majority of respondents were very satisfied with the 
quality of HD programming they get from cable or satellite. Those findings send 
a message: HD quality is fine but give us more channels.


II. TV Service Providers - How to Choose 
Here are some factors that could make one service more suitable for your needs 
than another:

Availability. Cable is widely available in most parts of the country, except 
for some rural regions. But only 2 percent of markets are served by more than 
one cable company, so you have no choice if you want cable but don't like your 
provider. Satellite service is available nationwide from DirecTV and Dish 
Network. You must be able to mount a dish antenna with an unobstructed view of 
the southern horizon.

Fiber-optic service remains limited in availability. In 2007, Verizon's FiOS TV 
was offered in parts of California, Delaware, Florida, Maryland, Massachusetts, 
New Jersey, New York, Pennsylvania, Texas, and Virginia. AT&T's U-verse service 
was available in 21 metropolitan areas in California, Connecticut, Indiana, 
Kansas, Michigan, Texas, and Wisconsin.

The latest programming services' expansion is being slowed by the need to build 
the costly infrastructure for the fiber-optic service. Also, like the cable 
companies, they must apply for a franchise in each market. But that's starting 
to change. Several states have passed legislation allowing statewide service 
filings and Congress is debating a law that would allow nationwide filings. 
Consumer advocates--including Consumers Union, the nonprofit publisher of 
Consumer Reports--are concerned that a move away from local control might allow 
phone companies to offer TV service in only selected parts of a market.

Equipment costs. Only satellite has an up-front expense. With cable, there's 
nothing to buy. You rent a set-top box or CableCard from the cable company. HD 
digital-cable boxes usually rent for $5 to $10 a month, often the same as a 
standard-definition digital box. CableCards cost about $2 a month; you can use 
them only with a digital-cable-ready TV. One negative: CableCards don't support 
interactive services such as video on demand.

Instead of a regular digital-cable box, you can rent one with an integrated 
digital video recorder, often for the same fee plus a $10-a-month programming 
charge. Most DVRs record about 30 hours or so of HD (more of standard 
definition) on a hard drive. You can pause and rewind, then fast-forward live 
TV or previously recorded shows. Renting gear rather than buying eliminates 
up-front costs and fears that hardware you spent hundreds on will soon be 
obsolete. But rental costs add up over time and you're stuck with what the 
cable company offers, so you might not be able to get newer, better equipment 
whenever you want it.

In most cases, cable service hasn't required a contract, so there have been no 
early-cancellation penalties. But increasingly you might have to agree to a 
long-term contract to get a promotional rate or discounted bundled services.

With satellite, you can buy gear from the satellite company, a 
dealer/installer, or an electronics retailer. Standard costs start about $250 
for an HD dish and receiver and can hit $750 for an HD DVR setup. Actual costs 
might be lower through rebates, free installation, and other perks if you sign 
a one-year contract. Some satellite promotions include receivers for several 
TVs. That can be more economical than paying monthly fees for multiple cable 
boxes.

You can lease satellite equipment by paying an up-front fee, typically $50 to 
$300, depending on the length of your commitment. (You might get it free as 
part of a promotion.) That fee covers the receiver, dish, and installation. In 
some cases, there's a monthly charge for equipment, and you must return it at 
the end of your contract.

You can also lease equipment from the phone companies. Verizon charges $10 a 
month for an HD box and $13 for one with a DVR. With AT&T, there's no separate 
hardware charge; it's bundled with service. Programming packages include one to 
three receivers.

HD lineups. Generally, prices for an expanded basic package with HD seem to be 
in the same ballpark. Cable and satellite are about tied for HD content but 
satellite is coming on strong. Channels such as Discovery, ESPN, TNT, 
Universal, HD-only HDNet, and premium movie channels are offered by all three 
services. Many cable companies also carry INHD, another all-HD channel.

Almost all cable companies and the phone companies pass along the major-network 
broadcasts that originate in HD. Satellite offers local channels to many but 
not all markets. Go to the satellite companies' Web sites and enter your ZIP 
code to see whether you can get local channels.

Cable is still the only way to get local-access and community stations. That 
could be a consideration if you enjoy watching school sports, for example.

Many major cable companies offer up to 20 or 25 HD channels, including network 
channels, varying by market. Dish Network has more than 30 HD channels, 
including niche HD channels acquired from Voom. DirecTV has about 15 HD 
channels, including the broadcast networks. At press time, the company 
announced it would have 100-plus HD channels later this year, after it launches 
two new satellites. Verizon offers up to 22 HD channels, AT&T up to 25. (All 
programming lineups, especially for AT&T and Verizon, are subject to change.)

HD costs. Cable can be the least expensive for basic packages. All three 
services have a similarly priced midrange HD package. Some cable companies 
offer bare-bones digital packages, $15 to $20 a month, with only major 
broadcast networks in HD. Midrange, expanded packages with more channels cost 
$40 to $50 a month. Some companies include HD versions of those channels at no 
charge while others tack on a $10-a-month fee for HD. Top-tier packages with 
premium movie channels in HD are about $70 to $100.

With satellite, you pay $10 to $20 for HD in addition to your package cost. 
Midrange packages are about $50 a month. The priciest packages, with HD premium 
channels, are about $100. Dish charges $5 a month for local channels.

Verizon's offerings include a 200-channel FiOS TV Premier package with almost 
20 HD channels for $43 (plus $10 for the box, as noted earlier). AT&T offers 
U-family, with 50 family-oriented channels and seven HD channels for $44 a 
month, plus $10 a month for HD.

Service bundles. Most digital-cable services offer "triple plays" combining 
digital TV, digital phone, and broadband Internet access at discounted rates. 
Most bundles cost about $100, usually for a one-year promotional period. Prices 
rise after that. Besides getting a discount, you consolidate dealings and bills 
with one company.

DirecTV and Dish Network don't have their own Internet or phone service. Both 
of the satellite companies have deals with EarthLink and various phone 
companies to offer DSL Internet access in certain areas. AT&T and Verizon are 
offering discounts when you sign up for some combination of TV, phone, and 
Internet services.

It can be hard to compare pricing plans from different providers because of the 
variations in channel lineups, surcharges for premium channels, add-on fees, 
and more. Even the packages and prices from a single company vary from market 
to market. Limited-time promotions and bundles add yet another variable.

Sports in HD. Satellite has the ultimate football fix. One of the main reasons 
consumers go for big screens and HD is the desire for a virtual front-row seat 
at sporting events. Cable, satellite, and phone companies all offer regional 
sports channels and sports packages, some in HD. Many football fans get DirecTV 
because it has NFL Sunday Ticket SuperFan, with 150 HD games a season for about 
$350.

Video on demand. Digital cable offers true video on demand, including HD, 
through digital-cable boxes (but not CableCards). You can order movies, sports 
events, and shows from premium channels, such as HBO and Showtime, and watch 
them whenever you like, usually within a 24-hour window. You can pause, 
fast-forward, and rewind.

All cable companies offer standard-def VOD and some also offer HD on demand for 
$4 to $5. Many have some free VOD, often children's programming. Fully half of 
the digital-cable users we surveyed used and liked VOD services, with about 
two-thirds calling them good or excellent.

Satellite service isn't two-way, or interactive, so you can't get true VOD, 
though DirecTV and Dish offer pseudo-VOD. It lets you select from a menu of 
movies that are downloaded to a DVR's hard drive. DirecTV plans to offer HD VOD 
later in 2007.

Verizon and AT&T offer standard-definition programs on demand. Verizon said it 
would offer HD VOD sometime this year.


III. Want to pay less? - Find out which types of service are available in your 
area, then make your choice


CABLE
Pros. No up-front costs. Basic digital cable can be the least-expensive way 
(other than an antenna) to get HD. More options for bundling with Internet and 
phone service. Video on demand.
Cons. Customers complain more about price hikes and changes in channel lineup 
than satellite users. Only one provider in most markets. Bundled rates might 
require service commitment.

SATELLITE
Pros. Choice of two companies. Dish Network has most HD (30 channels). DirecTV 
promises 100-plus HD channels later this year. Higher customer satisfaction 
than with cable.
Cons. You might have to pay for hardware or installation. Requires a service 
commitment. Local channels still not offered in all areas. No true video on 
demand yet. The dish must have an unobstructed view to receive signals.

FIBER-OPTIC (PHONE) TV
Pros. The biggest "pipe" into the home, with the potential to carry many HD 
channels. No up-front costs. Video on demand.
Cons. Available only in select markets and expansion is likely to be slow. 
Newcomer to the TV market; we have little data yet from users.

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