TCI Cablevison of Missouri announced Monday that it will raise expanded basic cable television rates throughout the service area "to keep pace with the regional cost of living index, plus an increase from program suppliers."
Basic expanded cable service rates will go up 81 cents to $11.11 per month. Basic service will remain at $10 per month. The change in rates will become effective in April.
TCI said in a press release that the increase is small compared to programming fee hikes of more than 30 percent in the last four years. Programming fees reflect roughly 20-30 percent of the customer's monthly bill.
"The two-year recession has helped us to hold the line on many of the costs we control," said Roger Harms, general manager of TCI Cablevision of Missouri. "But despite our best efforts to reduce internal expenses, we still have to cope with higher costs from external factors such as rising utility costs, taxes and increased operating expenses."
He said an important example of cable's effort to reduce the impact of rate increases is the move toward "unbundling" traditional basic and pay package options. Expanded basic includes BET, C-SPAN, headline news, VISN, TNN, CNN, QVC, AMC, Nickelodeon, the weather channel, the Family channel, Lifetime, A&E, CNBC, Discovery, Prime Sports, VH-1, Comedy Central, ESPN, MTV, USA and TNT.
Mike Maguire, chairman of Cape Girardeau's cable television committee said Monday that the rate increase comes as no surprise.
"We expected one last raise in the rates before the new FCC regulations went into effect," he said. But he added that the local cable committee has no regulatory power over the cable company's rates.
"As a consumer, I don't like to see the rise in the rates," he said. "But as a member of the committee, I know that we can do nothing to combat it yet."
TCI Cablevision is fully aware of that fact, too.
"As many of our customers know, on Oct. 5, Congress passed legislation which, among other things, provides local regulation of cable television rates," Harms said. "This provision does not become effective until April 1993. TCI Cablevision of Missouri intends to abide by the provisions of the law."
The upcoming price adjustment, according to Harms, is consistent with provision of the new cable legislation and both Cape Girardeau's and Jackson's officials have been notified of this decision by the cable company.
In addition to the programming costs that are passed on to TCI Cablevision of Missouri, Inc., by network programmers, the cable operator said it has increased the viewer options during 1993 to provide greater value to the monthly subscription package.
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