Cable Rates Not Frozen in Los Alamitos
Your news stories about cable television (“O.C. Cable Firm to Pay Rebates of $1.2 Million” and “City Freezes Paragon Cable Basic Rates Pending Federal Ruling,” Nov. 30) portray the Los Alamitos City Council’s action of Nov. 28 as a “freeze” of basic cable rates. That is not an accurate portrayal.
The council’s action did not freeze basic cable rates.
The council’s action ordered Paragon Cable to maintain a record of revenues from various service tiers pending FCC decisions interpreting its previous rulings on rate regulations.
Should the FCC ruling favor the city consultant’s interpretation, a refund would be in order (actually, a credit on upcoming subscriber bills is customary).
Two November FCC rulings on similar cases (Time/Warner, Milwaukee, Wis., and Paragon, Irving, Tex.) have supported cable companies.
Paragon Cable has not taken a rate increase during the past two years.
During the next six months several rate adjustments can be expected, including a decrease in equipment rates, an FCC-controlled 3-cent increase in basic rates to cover FCC license costs and a permitted cost-of-living increase in basic rates.
DONALD D. WEDDLE
Director of Public Affairs
Paragon Cable
Garden Grove
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