Ventura Cuts Cable Firm’s Rates by $6.43

Encouraged by hundreds of letters, phone calls and testimony by a steady stream of angry subscribers feeling overcharged and underserved, the City Council on Monday cut Century Communication Corp.’s basic rates by $6.43 per month.

The rollback order, retroactive for 13 1/2 months, affects the company’s 15,800 Ventura subscribers and will mean refunds estimated to exceed $1.2 million. The rebate translates to about $77 per household.

Barring intervention by the Federal Communications Commission to temporarily suspend the city’s congressionally granted rate-setting authority, the rate cut order takes effect in 60 days, city officials said.

“If you take look at the rates throughout the county, Century Cable is $10 to $11 higher than anyone else,” said City Councilman Jack Tingstrom, who joined in the council’s unanimous vote to roll back rates.

City analysts recommended the reduction to the City Council after reviewing paperwork submitted by the company to justify its basic cable rates.

The review determined that subscribers should be paying $25.07 per month, not the $31.50 they now pay.

Company officials said they will wait for the FCC to rule on their petition challenging the city’s authority to review basic cable rates.

The petition was vigorously opposed by the City Council, which hired a team of Washington, D.C., lawyers to make its case.

Century argues that since there is nothing stopping another cable provider from competing for subscribers, and since anyone can put a satellite dish on a roof, the company under federal law is operating in a competitive environment.

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“Century is proud of the level of service we provide our customers, and we believe we give a fair value for the price,” said Century General Manager Stephen J. Frantela in a statement to the City Council.

Nonsense, said some 40 Century subscribers who packed City Hall to complain about poor service, bloated rates and an unresponsive corporate giant operating with no competition.

“I’d probably be home watching the Dodger game instead of being here slamming you,” subscriber William Berger told Frantela during his chance to stand at the podium, “but in east Ventura, we’re probably the only people in Southern California who don’t get the Dodgers.”

City Hall has been flooded with more than 900 letters and phoned-in complaints since Century announced March 30 that it planned to raise its monthly basic cable rates by another $1.89 in Ventura.

“I think Century’s motto ought to be: ‘We give you less for more,’ ” said subscriber Bob Therrien.

Century is one of two cable companies operating in Ventura, but neither Century nor Avenue TV Cable has extended its lines into the other’s turf to compete for subscribers.

Century customers said that effectively leaves them at the mercy of a cable monopoly that is able to gouge them each month in the form of inflated bills.

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“I’ve been a comparison shopper all my life,” said retired teacher Carol Lindberg, “but I can’t comparison shop because Century has a monopoly.”

Instead, Lindberg said she did the next best thing. She canceled her cable service this month and bought a satellite dish system.

The standoff among the city, Century and its subscribers has been brewing for years. It has come to a head this year as Century and the city begin negotiating a renewal of the company’s 15-year franchise agreement, which expires Oct. 1.

As part of that review, city staffers last fall began asking Century to send in the necessary FCC forms used to justify a cable provider’s rates.

Century officials ignored the request, city officials said, including three letters explaining the requirement that were sent to the company between January and mid-March.

The company finally responded March 30--announcing it would raise monthly basic cable rates by 6% effective May 1.

Days later, Century petitioned the FCC to strip the city of its rate-setting authority as granted under the Cable Television Consumer Protection and Competition Act of 1992.

In a letter dated Sunday, U.S. Rep. Elton Gallegly wrote FCC Chairman William E. Kennard on the city’s behalf, citing the “little real competition” in Ventura.

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“As a member of the House Judiciary Committee who has closely reviewed antitrust legislation and the enforcement of antitrust laws, I find the argument set forth by Century in this case to contradict basic tenets of federal antitrust and competition policy,” the Simi Valley Republican wrote.

Two days earlier, Century officials said the company would delay its proposed rate increase for one year in hopes of setting a better tone for the franchise renewal talks. The company also said it plans to add Fox Sports West 2 at no extra charge to its basic service channel lineup.

Too little too late, contend City Council members and subscribers, who say the threatened rate increase and FCC filings only highlight what they consider to be a pattern of arrogance on the part of Century.

“To have Century Cable continue to say there is competition in this city . . . is idiotic,” Mayor Jim Friedman said.