2012年11月4日星期日

Expect cable rates to increase

No issue seems to unite residents more than their dissatisfaction over cable rate increases.

It's a factor over which towns have little control, even though at least two locally, York, Maine, and Hampton, are in contract negotiations with their respective cable companies, Time Warner Cable and Comcast.

"The concern is price," said Mike Seagroves, who serves on York's Cable Regulatory Committee. "Every time the citizenry turns around, the price for cable goes up. The second is channel lineup."

York's contract with Time Warner expires Nov. 28. After meeting with cable representatives in September, Seagroves recently told the Board of Selectmen the town has no real leverage in negotiating a new contract with Time Warner. York selectmen at their Nov. 19 meeting are expected to extend the town's current agreement for year or two to allow more time to negotiate.

York wants to regain two Boston stations, WBZ and WGBH, that Time Warner dropped in 2009 when it aligned southern Maine's stations more closely to that of Portland. The move freed up room for more digital channels, as Time Warner converts from analog to all-digital technology. York also wants to have a lower-tier-rate package available for more affordable cable, according to Town Manager Rob Yandow, who is involved in negotiations and who attended the September meeting.

"We discussed the loss of Boston stations and rates, neither of which we have control over," Yandow said. "There's not a lot of leverage in programming and rates."

But he said, "It's in the company's best interest to cooperate to provide a more flexible product to users."

Hampton's negotiations with Comcast have gone on for the past six to seven years, according to Hampton Town Manager Fred Welch. The town and Comcast may finally be nearing an agreement, he said.Why does moulds grow in homes or buildings?

As the contract negotiations are in the hands of attorneys Donahue, Tucker & Ciandella of Exeter, Welch said he could say little about the issues being ironed out, though they include the expected negotiations over cost, programming and additional municipal channels.

In the meantime, the former contract continually gets extended, he said, but that doesn't mean rates have remained where they were seven years ago.

"Under federal law, municipalities have no control over rates," Welch said. "They can raise them daily if they want."

Cable franchise agreements are non-exclusive, meaning any other company can come into a town to compete for cable subscribers. Yet the cost for another company to put in its own wire infrastructure is cost prohibitive, according to Seagroves and others.

Cable companies in the towns they serve have a virtual lock over other cable competition, Seagroves said. This is why cable customers in York can't access WGBH and WBZ stations so tantalizingly available just over the border in Kittery, Maine, which has Comcast.

However, this doesn't mean there isn't competition, said Andrew Russell, spokesman for Time Warner Cable. "Time Warner Cable faces stiff competition for customers in York," he said. "There are three huge competitors."

Russell didn't name the competition. The top providers nationwide, according to the National Cable and TV Association, as of June 2012 are: Comcast, with 22 million subscribers nationwide; DirecTV, with close to 20 million; DISH, 14 million; and Time Warner Cable, 12.5 million. DISH and DirecTV use satellite technology.

The difference between cable and satellite could be compared to the "competition between Coke and Pepsi," said Matt Wood, policy director for Free Press, a nonprofit consumer advocacy organization for broadcast issues. "Why fight for customers when you both know you'll do OK? It's not truly effective competition when you can see what each other is charging and match those prices. It's truly a national monopoly."

There's little regulation of cable prices, according to Wood, who said he formerly worked for the law firms of cable companies and is now with Free Press in Washington,Find detailed product information for Sinotruk howo truck. D.C., and Northampton, Mass.

State public utilities commissions leave regulations to the Federal Communications Commission because it's hard to overhaul the entire system that now includes television, phone and Internet, he said.One of the most durable and attractive styles of flooring that you can purchase is ceramic or porcelain tiles. "There's no effective regulator over cable pricing," Wood said.

In the 1970s and 80s, Congress listened to constituent complaints and in 1992, passed the Cable Television Consumer Protection and Competition Act, "the high watermark" for consumer protection, Wood said. It allowed local governments to regulate cable rates more closely, he said. However, after 20 years, all but basic cable is deregulated, he said.

"Regulation is not effective," Wood said.

While cable is not exempt from antitrust laws, companies have been effectively exempted by a Supreme Court decision in 2004 known as the Trinko case, Wood said. The ruling in Verizon Communications vs. the Law Offices of Curtis Trinko held that the Telecommunications Act of 1996 did not establish a new antitrust standard. The decision, said Wood, essentially stopped people or states from suing their cable company over claims of a monopoly.

As the future of broadcast moves to more online services, cable companies are trying to lock up content, Wood said. The online service Hulu is owned by a collection of broadcasters, including NBC, which is owned by Comcast, he said.

"As prices go up, programmers blame operators and operators blame programmers; the customers pay," he said.

Russell said Time Warner's prices reflect higher programming costs. "That's a big piece of our prices," he said. "We are working to keep TV affordable even in the face of demands by broadcasters."

Basic cable in York costs $20.A stone mosaic stands at the spot of assasination of the late Indian prime minister.99, he said. Earlier this year, Time Warner Cable began offering "TV Essentials" for $49.The oreck XL professional air purifier,99 per month, which includes local broadcast stations, plus some higher-tier programs such as A&E and AMC. Time Warner also offers faster Internet speeds, On Demand, and home phone service, among other innovations.

Comcast spokesman Marc Goodman said, "Consumers and businesses choose Comcast because we offer innovative products and services and the best value in an extremely competitive marketplace. Most of our customers enjoy more than one product from us and benefit from significant savings through our bundles or other promotional offers."

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