Cable Firms Mix, Match Offerings
The future of your cable TV service can depend on which side of the street you live on.
If you live on the east side of Glenoaks Boulevard in Sylmar, for example, the immediate future is chock-full of high-tech goodies.
Your system has been upgraded with fiber optic conduits that have far greater capacity than the old-fashioned wires. Later this year, you’ll be offered high-speed cable Internet service and soon thereafter, you’ll be able to get your home telephone service through the cable lines if you choose.
If you live on the west side of Glenoaks, however, the foreseeable future of your cable service is not, well, not as futuristic. In 1999 you can took forward to only one basic change. the name at the top of your Cable bill.
That system, which has yet to undergo any upgrading that would open the technological doors to the Internet and other new offerings, is expected to change owners at least twice this year. Upgrading is likely to be several years off.
The contrast between these systems--Media One on the west side of the street and Tele-Communications Inc. on the east side-is drastic but not unusual in the tumultuous world of cable television, where billions of dollars are being risked on the belief that what were originally cables for TV signals will also become the major’ conveyor of communication and electronic information to the home consumer.
Seven different cable systems serve the San Fernando, Santa Clarita and Antelope valleys, and all are in a different stage of development concerning upgrades and new offerings.
The added investment needed for upgrades, plus the quest for alliances with other telecommunication companies, has also caused tremendous changeovers in ownership of cable systems. Three of the systems serving the valleys expect to undergo ownership changes this year, and a fourth just completed its changeover.
But of all of them, no system is more in, flux than the TCI operation based in the east Sari Fernando Valley, serving North Hollywood, Mission Hills, Panorama City, Toluca Lake and parts of Van Nuys and Sherman Oaks. To the west, the system also serves the city of Agoura Hills.
TCI is the second biggest cable operator in the country, with 12.5 million subscribers. Last. summer, AT&T; announced it would acquire TCI in a deal worth more than $40 billion.
The deal, which is awaiting final approval from the Federal Communications Commission, would allow AT&T; to offer subscribers not only TV and high-speed Internet, but also telephone, service through upgraded cable lines.
The city of Los Angeles had to approve the change in ownership from TCI to AT&T;, and it did so last week, but only after requiring that the new owner figure out a way to provide “nondiscriminatory access” to its cable lines “for all providers of Internet and online services.”
America Online and other Internet providers had argued, successfully, that it was unfair to allow AT&T; total control over cable lines going into residences.
But even if the AT&T-TCI; deal goes through and the Internet matter is put to rest, the fate; of the East Valley system will still be up in the air.
In 1997, TCI announced an agreement with Century Cable that included a trade of the East Valley system for one of a similar size in Northern California. The swap has riot yet been carried out, but TCI spokesman Andrew Johnson said it is expected to be after the merger is finalized.
“Both our company and Century, are making an effort to cluster our. systems,” Johnson said. “We have 90% of the market in the San Francisco Bay area and they have a major presence in Southern California.
“It made sense to cluster our systems together by making the trade.”
If all goes according to plan, AT&T; will assume ownership of the East Valley system and eventually turn it over to Century.
But don’t put away your scorecard yet.
Century is, itself, for sale, and executives say a deal is near. “They’re kicking the tires,” said Bill Rosendahl, Century’s vice president for operations, in an interview last week. “I think we win be able to announce a new owner in the next 60 days.”
The East Valley system’s future might, in particular, be cloudy, but the same could be said for the entire cable industry. Some major players, such as AT&T;, are betting heavily that cable will be the conduit of choice for high-speed Internet service that delivers the online world to home computers at speeds far greater than now widely available.
There are, however, competitors. Pacific Bell has introduced, in a few areas of Southern California, its FasTrak digital subscriber service that delivers high-speed Internet over telephone lines. Company officials say they plan to install the equipment needed to offer FasTrak in many more of its local offices this year.
Also, Internet signals can come from the skies directly into the home. Hughes Electronics has entered the high-speed Internet game with its home satellite service called Direct. The satellite dish needed to receive this service is about the same size as that used for home satellite TV.
The advantage DirecPC has over other high-speed Internet delivery methods is that it is currently available throughout the United States. A disadvantage is that the dishes cannot send signals directly up to the satellite. In order to send mouse clicks and other outgoing signals, the home user has to have, in addition, some type of telephone or cable Internet hookup.
The consumer cost of emerging technologies tends to fluctuate, but at the moment, cable is winning the price war among high-speed Internet suppliers. (They all cost considerably more than the lower speed, dial-up modem systems now used by the vast majority of Internet subscribers).
For example, in areas where Media One is now offering its cable Internet, the customer pays a onetime charge of $150$200 for equipment and installation, plus $39.95 a month for Internet access. (The monthly fee is higher if the customer ‘does not subscribe to Media One’s cable TV service).
Subscribing to Pacific Bell’s FasTrak digital telephone service, where available, requires an initial outlay of $198 for equipment, and then $49 a month for Internet access,
Directions satellite dish and other accessories cost $299. Professional installation is available for $179. Do-it-yourselfers can buy an installation kit for $59.99. Internet access is offered in a package deal that includes both incoming and outgoing services, at monthly charges beginning at $30 for 25 hours of use on up to $130 for 200 hours.
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Watching Cable in the Valleys
Seven cable systems serve the San Fernando, Santa Clarita and Antelope valleys, and all are in a different stage of development concerning upgrades and high-tech new offerings. Some, such as the Falcon and Marcus cable companies, have completed fiber optic updates that will allow them to offer Internet and telephone services through their cable lines. On the other hand, the 94,000 subscribers of the TCI operation in the east San Fernando Valley will likely have to wait years before they are offered the new services -- the updating of that system has yet to begin.
*
Cable Systems
Time Warner
West Valley
San Fernando
Canyon Country
*
Subscribers
141,000
*
Basic channels
62
78*
*
Monthly fee
$36.56
$36.82*
$28-San Fernando
*
Future plans
Fiber optic upgrade in progress in all areas except San Fernando, where delayed pending license renewal. Internet service begins in some areas in June. Partnering with AT&T; to providephone service through the cable lines.
*
Cable Systems
Media One
Sylmar
Sunland/Tujunga
Kagel Canyon
Santa Clarita
*
Subscribers
61,000
*
Basic channels
70 - Sylmar, Sunland
Kagel Canyon
63 - Santa Clarita
*
Monthly fee
$36.86-Sylmar
$35.73-Sunland
$37.62-Kagel Canyon
$41.47-Santa Clarita (city)
$39.67- Santa Clarita (county areas) *
Future plans
Fiber optic upgrade status: completed in Sunland, 50% finished in Sylmar, just begun in Santa Clarita, Internet and telephone service to be offered in some upgraded areas later this year.
*
Cable Systems
TCI
East Valley
Agoura Hills
*
Subscribers
94,000
*
Basic channels
67
*
Monthly fee
$27.31
*
Future plans
Fiber optic upgrade not yet begun. AT&T; plans to soon acquire system, then transfer ownership to Century Cable later this year. But Century itself is for sale.
*
Cable Systems
Century Cable
Tarzana
Encino
Sherman Oaks
Studio City
*
Subscribers
40,000
*
Basic channels
71
*
Monthly fee
$42.07
*
Future plans
Fiber optic upgrade in progress. No Internet service, yet. System is for sale.
*
Cable Systems
Falcon
Calabasas
Hidden Hills
*
Subscribers
17,000
*
Basic channels
61
*
Monthly fee
$54.95**
*
Future plans
Fiber optic upgrade complete. Testing of Internet service to begin this year. Partnering with AT&T; to eventually offer phone service.
*
Cable Systems
Jones Intercable
Antelope Valley
*
Subscribers
71,000
*
Basic channels
70
*
Monthly fee
$28.60
*
Future plans
Fiber optic upgrade near completion. Internet status uncertain. System ownership switches to Comcast in April
*
Cable Systems
Marcus Cable
Burbank
Glendale
*
Subscribers
80,000
*
Basic channels
71
*
Monthly fee
$32.63 - Burbank
$31.90 - Glendale
*
Future plans
Fiber optic upgrade done. No Internet plans announced. System bought by Paul Allen last year.
* Upgraded areas
** Includes converter and remote
