Proposed Cable Rate Hike Gets Poor Reception

A day after it was revealed Century Communications Corp. intends to hike premium cable rates by as much as 453%, more than two dozen angry subscribers urged city officials to thwart the proposed increases.

“It’s outrageous, it’s unethical, and it proves greed is the major factor here,” said Dorothy Guzik, whose monthly bill would rise past $36 after an $11.20 increase. “This is simply an unregulated monopoly, and you’re left at its disposal.”

Beginning Aug. 1, Century plans to boost a variety of premium options by 274% and 453%.

Under the new rates, the monthly cost for a 12-channel package that offers CNN, the Disney Channel and Comedy Central would jump from $4.09 to $15.29. Meanwhile, the charge for any individual premium channel would climb from 45 cents per month to $2.49.

The planned hikes come just two months after the city accused Century of overcharging 15,800 east Ventura subscribers for its basic channel package. Officials ordered the company to cut its basic rates by $6.43 a month, and Century officials said they would comply starting this month. Century also announced it would rebate subscribers $7.86 a month through June 1999.

The company, however, then informed city officials it would hike premium rates--a move city officials criticized as an attempt to offset the $1.4-million cost of cutting the basic rate.

“It’s awfully transparent, too much of a coincidence,” Mayor Jim Friedman said. “This is obviously no way to be treating customers, and we are so sorry Century chooses to treat customers in such a shabby fashion.”

Century officials counter that the premium rate increases are overdue.

“The channels were underpriced for a long time, and a business decision was made because of the value and quality of these channels,” said Bill Rosendahl, a Century spokesman.

As for criticism from city leaders, Rosendahl said, “I’m sorry to hear it. We have the same goals in mind. Our customers are their constituents, and we should be working together.”

Century’s plans came to light Monday night, when City Council members disclosed the plans at a meeting and announced intentions to fight them.

Under federal communications law, the city can regulate the company’s basic rates, but must persuade the Federal Communications Commission to regulate premium rates if subscribers feel they are too high.

City Atty. Bob Boehm said an appeal to the FCC will be filed this week, but the commission would not be expected to render a decision for months. By Tuesday afternoon, about two dozen customers had phoned their complaints on the planned increases to the city manager. If the FCC denies the city’s appeal, Boehm and other city officials predict some customers will switch to satellite television.

“What has happened in Ventura underscores the monopolistic nature of cable companies,” Boehm said. “In this case they may well end up stabbing themselves in the back. The folks who can afford the expanded levels are probably going to give serious thought to a satellite dish.”

Meanwhile, programmers said they have little control over rates charged by cable companies. “I’m sure there are going to be upset customers over this, but they should be upset with Century” and not programmers, Disney Channel Vice President Shirley Powell said.