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Comcast boosting monthly cable rates March 1 Company says increase

Posted on: Wednesday, 28 January 2004, 06:00 CST

Comcast Corp., the cable television company that serves most of the Jacksonville area, said Monday it will increase its monthly rates for many of its Northeast Florida customers on March 1, its first rate hike in 18 months.

But while the rates go up, Comcast officials said the company is adding value to its cable packages, including the introduction of its On Demand service for digital customers this month and the addition of new channels such as Chicago cable superstation WGN.

Comcast will raise its expanded basic rate for Duval and St. Johns County customers by $1.34 to $42.99 and its digital cable packages by $3 to $4 a month.

Some Clay County basic cable customers, who have been paying less than Duval and St. Johns County customers, will see their bills rise by $3.84 a month to $42.99.

This is the first price increase since Comcast acquired the Jacksonville-area cable franchise from AT&T Broadband in November 2002, and Comcast said it is the first increase for analog cable customers in 18 months. It is the first increase for digital cable subscribers, which account for about one-third of Comcast's 250,000 area customers, in two years.

"We understand it's necessary for us to maintain competitive pricing," said Doug McMillan, Comcast area vice president. But he said he hopes customers have seen better service since Comcast took over.

"I think most customers will recognize the additional value we've added to the product since we came here," he said.

The added value includes On Demand, launched this month, which allows digital cable subscribers to access more than 1,000 cable programs at their convenience. McMillan said about 90 percent of digital customers now have that service.

The company also has added more channels to the cable packages and will be offering more on March 1, including WGN, the Do-It- Yourself Network and Fine Living.

Comcast also touted improved customer service, after the city of Jacksonville fielded numerous complaints about AT&T Broadband's service.

"In general, the service has actually improved substantially since they took over," said Howard Conner, the city's cable franchise manager.

Conner said the improvements include better handling of customer calls and fewer billing errors.

"They are much easier to deal with than the previous AT&T operators," he said. "They seem to want to work hard to provide the best level of service they can."

Cable television rate increases have been a hot topic in Washington, D.C., for several years. Last July, a study by the Federal Communications Commission reported that cable rates rose by 8.2 percent in the 12 months through July 1, 2002, and had risen at an annual rate of 7.1 percent for the previous five years, well above the inflation rate. That prompted some calls for federal government action.

"Clearly, Congress needs to step into the cable morass and help protect consumers from cable price gouging," said a statement last year by Gene Kimmelman, senior director of public policy and advocacy at the Consumers Union in Washington.

However, a follow-up report in October by the General Accounting Office, the research arm of Congress, suggested that market competition, rather than government intervention, should help keep cable rates lower. Although most cities are served by only one cable company, the GAO report said direct broadcast satellite companies like DirecTV are providing a good level of competition that is improving cable service.

While cable rates have been skyrocketing in some markets, McMillan said with the $1.34 monthly increase for many of Comcast's customers, their rates have gone up only 2 percent a year since mid- 2002.

"The majority of our customers have not seen an increase in 18 months," he said.

mark.basch@jacksonville.com, (904) 359-4308

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