Cable Service Agrees to Freeze Rates for 2 Years
United Cable Television has agreed to freeze its subscriber rate for two years and to provide discounts for low-income residents as part of a settlement of a $300,000 fine levied against the company by the Los Angeles City Council, city officials said.
The council imposed the fine in September, 1989, because the company had failed to meet agreed-upon construction schedules for bringing cable service to the east San Fernando Valley.
When United Cable won the east San Fernando Valley franchise in 1983, it promised to complete the system within two years. But the East Valley was not fully connected to cable service until May, 1989.
City Councilman Ernani Bernardi said Saturday that, in lieu of paying the fine in cash, the company is going to freeze its basic subscriber rate at $3.95 a month for two years. United Cable had sought to increase the rate to $9.95 a month.
The company will also be obligated to offer discounts of 10% to low-income residents who receive its cable service.
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