More Cable Operators Increase Their Rates
By MONICA HOGAN -- Multichannel News, 1/22/2001
In the wake of rate adjustments by larger MSOs such as AT&T Broadband, Charter Communications Inc. and Adelphia Communications Corp. have started informing their customers of pending rate increases.
Among the top markets where Adelphia will raise prices are Buffalo, N.Y., and Palm Beach, Fla. Charter has named St. Louis, Fort Worth, Texas, and Atlanta among its first systems to see rate increases in 2001. Prices will increase as early as next month. The timing and the rates of the increases vary from market to market, and in some cases, neighborhood to neighborhood.
To help temper the bad news, Adelphia is sending out glossy direct-mail pieces promoting new discounted service bundles. In markets where the MSO sells both digital cable and PowerLink high-speed cable modem service, it offers two bundles that can save consumers 10 to 20 percent off the prices they would pay when purchasing the services separately, spokesman Bill Pekarski said.
"Some people will actually get a rate reduction as they're able to take advantage of this option," he added. "Everybody likes a little bit of a bargain."
The new "Adelphia Advantage" package bundles basic cable, digital cable and high-speed Internet access for $79.95 per month. For $99.95 per month, the "Total Advantage" package adds all the MSO's premium multiplex channels, such as Home Box Office, Cinemax, Showtime and The Movie Channel.
Direct-broadcast satellite provider EchoStar Communications Corp. also provides a $99.99 bundle, combining its "America's Top 150" programming package with a two-way Internet over satellite service from marketing partner StarBand Communications Inc.
The DBS company also said earlier this month that it is raising rates on its less robust Dish Network programming packages by as much as 10 percent. However, that didn't keep EchoStar from lighting up a huge electronic sign outside its Littleton, Colo. headquarters, alerting suburban Denver residents of AT&T Broadband's recently-announced rate increases.
Channel lineups for the Adelphia Advantage and Total Advantage packages vary market to market, but the MSO is trying to keep the package prices standard across the country as much as possible, Pekarski said.
Adelphia plans to implement its rate adjustments in three waves over a three- to four-month period. The first systems to notify customers were the ones with fully upgraded plants offering all the company's services, Pekarski said.
According to published reports in various local newspapers, at least some of Charter's price increases-mostly in upgraded systems-appear to be above the 5 percent per year that industry groups have recommended MSOs follow.
In the Fort Worth area, Charter is increasing prices as much as 15 percent, The Fort Worth Star-Telegram reported on Jan. 5. According to the Atlanta Constitution, Charter's rates in the Atlanta market are rising by as much as 9 percent. St. Louis will see rates in upgraded systems increase by about 7.6 percent, said the St. Louis Post-Dispatch.
