ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, December 5, 1996 TAG: 9612050048
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
Cox Communications said Wednesday it will raise basic rates by as much as 7.6 percent and make channel changes in its Roanoke Valley cable television services, all effective March 1.
The Atlanta-based company, which has provided cable TV services in the Roanoke area since 1976, said it will raise the rate for its basic cable service by as much as 51 cents a month, or 5.6 percent. The cost of Cox's expanded basic service, which includes Cable Plus, will increase by as much as $2.04, or 7.6 percent monthly.
The size of the increases will depend on where customers live in the valley. Vinton customers will see their bills increase the most.
Cox last raised its rates in March, when the price of basic service with Cable Plus went up 6.3 percent, or $2.10 a month. Basic cable service increased then by 32 cents a month.
The company attributed the coming rate increase to the cost of programming, channel additions, inflation and an overall increase in the company's operating costs. In a letter prepared for customers, Cox indicates that two-thirds of the rate increase is a result of channel changes and higher costs for programming.
When the new rates take effect, Cox said, it will move the History Channel and the Sci-Fi Channel from a five-channel tier service - for which customers pay an additional fee - to its Cable Plus package. History will appear on Channel 37 and and Sci-Fi on Channel 43.
The company is adding TVLand, a channel of TV programming from the past, and Access, a 24-hour consumer information channel, to its Cable Plus service this month.
Cox said in the letter that it regretted the need to "adjust" its rates but would work to "ensure that this increase reflects an increasing level of service, as well."
The company said the changes it has made in the past year to improve service have included: extending its installation and repair hours, adding an in-house technician to help customers over the phone with cable problems, and adjusting its staff schedules to better respond to customers' calls.
The company also is increasing rates for premium and new product tier packages.
The price for the tier package will jump from $4.25 to $4.95, a 16.5 percent increase. Turner Classic Movies and the Independent Film Channel will replace the History Channel and the Sci-Fi Channel in the tier when they move to Cable Plus on March 1. Other channels in the tier are ESPN2, the Cartoon Network and Country Music Television.
Those who buy the tier in a package that includes two premium services will see the rate for the package rise by 50 cents to $23.95, the company said.
Cox said its new rates meet federal price guidelines and comply with Federal Communications Commission regulations and the terms of franchise agreements with Roanoke, Roanoke County and Vinton. The company said it will continue to work with local governments to make sure its rates and services remain legal and comply with local agreements.
The Roanoke Valley Cable Television Committee discussed Cox's new rates at its meeting Wednesday. The committee's lawyers will review the rate increase to make sure it conforms with federal guidelines, said city Councilman Jack Parrott, a member of the committee.
Cox told the committee last week that it planned the rate increase, Parrott said. About all the committee can do is have its lawyers review the rates, he said.
"We're kind of powerless," Parrott said. As long as Cox complies with federal rules, he said, the committee has no say about the rate increase.
Now that Cox has competition in the Roanoke Valley from the wireless cable television service of R&B Communications of Daleville, Cox has asked the FCC to totally deregulate its business, Parrott said. Congress gave the FCC the power to regulate basic and expanded basic cable rates in 1992.
The valley cable committee discussed whether Cox's and R&B's new long-distance telephone service venture, Valley FiberTel, compromises their competitive relationship in the cable television business, Parrott said. But because the venture involves only a joint marketing agreement to provide long-distance access over the pair's fiber-optic networks to local businesses, Parrott said he doesn't think there would be a problem.
He doesn't believe Cox's rates would increase more if the FCC deregulates them than they would otherwise, Parrott said.
As of this month, Cox's basic service expanded with Cable Plus offers 49 channels at an average cost of 59 cents per channel per month.
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