THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Monday, November 21, 1994 TAG: 9411210069
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY MAC DANIEL, STAFF WRITER
DATELINE: SUFFOLK LENGTH: Medium: 82 lines
Next time you turn on cable television, consider yourself lucky you're not channel surfing in Suffolk.
Residents there pay the highest cable rates in the region, according to a city report submitted to the Suffolk Council this week. Basic service in Suffolk costs nearly three times what Cox Cable customers in Portsmouth, Norfolk and Virginia Beach are charged and double what those in Chesapeake pay.
For years, many of Falcon Cable's 20,000 customers in Suffolk have complained about being billed for services for which they never subscribed. Others have told tales of being placed on hold for upwards of 45 minutes waiting for customer service.
And cable expansion to outlying areas of the city has been slow.
Falcon Cable customers in Suffolk pay $28.03 for 43 channels. According to the Suffolk survey, the next highest rate in the region was in Kill Devil Hills, N.C., where Falcon charges customers $24.26 for 37 channels. Chesterfield County, served by Comcast Cable, ranked third on the list with a rate of $24.25 for 38 channels.
Local taxes on cable service were not included in Suffolk's tally. Most cities have a franchise fee. Suffolk's is 3 percent.
In Portsmouth and Virginia Beach, Cox Cable customers pay a 5 percent fee. In Norfolk, subscribers pay both a 5 percent fee and a 7 percent utility tax. Customers of TCI Cable in Chesapeake and Newport News pay 3 percent fees.
But that's money that goes to the cities, not the cable operators, who rely on the rates for their expenses and profit margins.
The reason for the high rates in Suffolk is the city's 430-square-mile size and low population density, said Jack Edwards, regional manager for Falcon in Burke, N.C. Falcon is based in Los Angeles.
Edwards will likely become Falcon Cable's new regional manager in Suffolk on Jan. 1, he said. The franchise has been without one for several months.
``We have 500 miles of cable laid in Suffolk,'' Edwards said. ``We have more cable and less homes-per-mile in Suffolk. And of course, that's one of the main factors in determining your rates nowadays.''
Edwards added that Falcon Cable uses more than 7,000 utility poles in Suffolk that are owned by Virginia Power. The cable franchise must pay what amounts to rent for these poles, and that cost is reflected in Falcon's higher rate, he said.
``And that's pretty much it in a nutshell,'' Edwards said.
Suffolk City Council has expressed a growing concern about what can be done to ensure residents are being treated fairly by Falcon. At a work session on Wednesday, a Falcon Cable representative who had been invited to the meeting failed to show.
Edwards said there was a misunderstanding. ``We've always had a good relationship with the city council up there,'' he said. ``There was a misunderstanding as to what this meeting was all about. I felt like we needed to wait until our budget was approved until I went down there.''
Meanwhile, Suffolk officials have said they are examining a range of options to improve service. Interim City Manager Leon Johnson said city staff is currently researching these options.
Under a franchise agreement between the city and Falcon, as well as federal legislation, the city has the right to take control of the franchise should Falcon fail to meet proscribed city standards.
City officials would not discuss their plans, although taking over a franchise is considered an extreme measure. One Suffolk official said, however, ``It's far from a dead issue.''
Mike Singpiel, eastern divisional vice president for Falcon, said ``It's hard to say what's been happening in the past. I would tell you this; we can always improve on customer service and our efficiency could always be improved.
``Every operation is going to have some problems,'' he added. ``but those are certainly areas that we're focusing on.'' ILLUSTRATION: Graphic by Mac Daniel
Local Cable Rates
For copy of graphic, see microfilm.
Staff drawing by John Earle
by CNB