Charter boosting basic cable rates

Ryan Carter

The cost of watching cable television is going up about $2 per month

for many viewers.

Charter Communications’ rates for expanded cable service will

increase effective June 1. Expanded basic cable subscribers in

Glendale will see their rates go up $1.89, from $30.46 per month to

$32.35 -- a rise of 6.2%.

Charter has two franchise areas in La Canada Flintridge, so some

subscribers will have their rates go up $1.78 -- from $30.46 to

$32.24 -- and others will increase from $27.95 to $29.95. Montrose

and La Crescenta subscribers in unincorporated areas will see rates

go from $30.46 to $32.24. Burbank subscribers will also see their

expanded basic rates go up $1.89 a month. Expanded basic is a package

of about 80 channels, including Bravo, CNN and USA Network.

Digital cable rates will not change. Customers who subscribe to

value package promotions will not see an increase, nor will those

receiving a package of 30 channels known as limited basic. That

package in Glendale will decrease from $13.49 to $13.38 a month.

The company’s own increased costs -- from gasoline prices and

workers’ compensation -- are part of the reason for the expanded

basic increase, officials said.

“The cost of doing business has increased, as well as the cost of

core programming,” said Craig Watson, vice president of

communications for Charter’s western region. “The core programming

that is on expanded basic, whether it’s ESPN or USA, those are the

channels upon which most customers rely, and where we’ve experienced

some price increasing.”

About 80% of subscribers in the area pay for expanded basic or

higher service, Watson said, adding that company officials encourage

customers to take a serious look at digital packages, which they

think are a better value.

Differences in rates between cities and the difference in rate

increases have to do with channel lineups and the company’s balancing

of regulated maximum limited basic service rates, which are set by

FCC guidelines and in agreements with cities, Watson said.

Charter began sending out notification letters to city officials

in late March, and is notifying customers by mail.

“I have asked staff to look at the history of rate increases and

to speak with legal counsel with us on the cable franchise renewal

process to factor that in as one issue in negotiations with Charter,”

said Mark Alexander, La Canada Flintridge city manager.

Officials from La Canada Flintridge, Glendale and Burbank -- each

of which has a franchising agreement with Charter -- are negotiating

a new cable franchise contract. Glendale’s contract expires Jan. 3.

“We can’t regulate rates, but certainly we have a concern [about]

the frequency the rates are changed,” Alexander said, stressing that

he still needed to look at the history of rate bumps to see if the

city had complaints about Charter’s practices.

The city can deny a deal only if a company’s actions are not in

accordance with FCC guidelines.

Charter officials estimated about 40,000 people will be affected

by the increases. In La Crescenta, Burbank, Glendale, Montrose and La

Canada Flintridge, Charter has 60,600 subscribers. In Glendale alone,

45,000 customers subscribe.