THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, October 14, 1995 TAG: 9510140280
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
LENGTH: Medium: 56 lines
Cox Communications Inc. said Friday that it will increase rates for its cable-TV customers in South Hampton Roads between 7.4 percent and 8.7 percent.
The rate hike, which will be phased in over the next two months, is the second for Cox this year. The region's largest cable-TV operator increased rates 3 percent to 4 percent in March.
The changes will take effect 30 days after customers receive their next monthly bill, said Larry D. Michel, Cox's local marketing and sales manager. He said the mailings will go out over a few weeks, beginning next week.
Cox said the hikes are allowed under regulations of the Federal Communications Commission that let cable operators recover increased costs. Cox said the pending rate hikes cover its increased costs from general inflation over the past 2 1/2 years, as well its higher costs for buying programs in the past year.
Cox would have passed on general inflation increases in each of the previous two years, Michel said, but the FCC only in the past several months developed the formula for such increases under the 1992 federal law that reregulated cable operators.
Under an arcane FCC rate-setting formula, which takes into account such things as a city's population, the rate increases will vary.
The biggest percentage increase, 8.7 percent, is for customers of Cox living in Navy housing. Their rate for Cox's standard package of 58 channels will rise from $22.20 to $24.13 a month.
The smallest percentage increase, 7.4 percent, is for Norfolk residents living outside Navy facilities. Their monthly rate for standard service will rise from $22.40 to $24.05.
Other new monthly residential rates for standard service are as follows:
Virginia Beach (except military facilities), $24.93, up $1.86 or 8.1 percent.
Fort Story, $25.16, up $1.95 or 8.4 percent.
Portsmouth (except military facilities), $24.44, up $1.85 or 8.2 percent.
Knotts Island, N.C., $24.98, up $1.82 or 7.9 percent.
None of the rates includes taxes or franchise fees charged by cities. Rates for other services - such as additional outlets, premium channels like HBO, or pay-per-view movies - will remain the same.
Cox has 207,000 customers in South Hampton Roads and Currituck County and will add 90,000 more when the pending purchases of systems in Chesapeake and Newport News are completed.
KEYWORDS: CABLE TV CABLE TELEVISION RATE HIKE by CNB