Mediacom Cable Rate IncreaseMEMORANDUM
January 2,2003
TO:The Honorable Mayor and City Council Members
FROM:The Honorable Mayor and City Council Members
SUBJECT:Michael C. Van Milligen, City Manager
Mediacom Rate Increase
Mediacom has informed the City of a cable TV rate increase from $36.95 per month to
$41.95 per month, effective February 1, 2003.
This $5.00 increase is the largest single increase in the basic rate in Dubuque's 49-year
cable history. The new rate represents a 13.5% increase in one year, and a 90.7%
increase since the City's limited rate regulation authority was lost in July 1996. Inflation
for that same 6.5-year period has been about 15%.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Merrill Crawford, Cable Franchise Administrator
Cable Television Division
City Hall Annex - 1300 Main Street
Dubuque, Iowa 520014732
(563) 5894181 office
(563) 5894299 fax
(563) 5894193 TDD
catv@cityofdubuque.org
January 2,2003
MEMO TO: Michael C. Van Milligen, City Manager
FROM: Merrill Crawford, Cable Franchise Administrator
SUBJECT: Mediacom Basic Cable Service Rate Increase
INTRODUCTION: The purpose of this memorandum is to report a pending
increase in the rates Mediacom charges for Basic Cable Service in Dubuque.
BACKGROUND: We have received a letter from Mediacom announcing the
addition of three program services to the basic cable service package (which
they now call "Family Cable") in Dubuque, and a plan to implement an increase
in the rate they charge for that service, effective February 1, 2003.
The current rate for "Family Cable" is $36.95/mo., plus taxes and federal fees.
The new rate will be $41.95/mo., plus taxes and fees. Senior Citizens will
receive a $4.20 (10%) discount. Prices of some optional services will be
adjusted as well, but our greatest concern remains the entry level tier to which
most Dubuque households must subscribe to receive local broadcast stations.
The new rate represents a 13.5% increase in one year, and a 90.7% increase
since the City's limited rate regulation authority was lost in July, 1996. Inflation
for that same 6.5 year period has been about 15%. The $5.00 increase will be
the largest single increase in the basic rate in Dubuque's 49-year cable history.
The timing of the increase is not unexpected; Mediacom and its predecessors
raised basic cable service rates on the first of February in 2001 and 2002, and on
the first of January in 1997, 1998, 1999, and 2000. Many major cable operators
are implementing their annual increases across the country. However, the
amount of this increase, particularly as compared to inflation, is once again very
disturbing and clearly reflects the combined effects of a vertically-integrated
industry which is subject neither to regulation nor to effective market competition.
Dubuque's need for an entry-level "broadcast basic" package, which includes
area broadcast stations and PEG access channels, will be a key topic in
franchise renewal negotiations, but local rate controls, per se; cannot be restored
via the franchise renewal process.
Service People Integrity Responsibility IrmovaEon Teamwork
One interesting competitive note, however, is that at least one of the Direct
Broadcast Satellite companies is reported to be nearly ready to begin digitally
retransmitting the local signals of KGAN, KWWL, and KCRG-TV (channels 2, 7,
and 9) into northeast Iowa. We expect to hear more about that prospect this
month.
RECOMMENDED ACTION: The Recommended Action is that you share this
information with the City Council and others as you deem appropriate.
Cc: Pauline Joyce, Administrative Services Manager
Cable TV Regulatory Commission
Cable Community Teleprogramming Commission
January 2, 2003
HISTORY OF SUBSCRIPTION RATES FOR BASIC CABLE SERVICE
Dubuque, iowa
Date Rate Amt. Increase %Increase No. of Basic Channels
1954 $3.50/Mo. - ..... 5
1966 $5.45/Mo. $1.90 54% 12
1967 $5.70/Mo. $0.25 4% 12
2/24/75 $7.25/Mo. $1.55 27% 12
1/1/83 $7.25/Mo. $. 0 0% 30
5/16/83 $8.25/Mo. $1.00 13% 30
7/16/84 $11.52/Mo. $3.27 39% 30
5/1/85 $12.09/Mo. $ .57 5% 30
9/1/88 $15.50/Mo. $3.47 28% 47
12/1/89 $16.28/Mo. $ .78 5% 47
12/1/90 $17.75/Mo. $1.47 9% 47
12/1/91 $19.36/Mo. $1.61 9% 60
12/1/92 $20.41/Mo. $1.05 5.4% 60
10/1/94 $21.08/Mo. $ .67 3.3% 62
10/1/95 $22.00/Mo. $ .92 4.4% 66
08/1/96 $24.11/Mo. $2.11 9.6% 66
01/1/97 $25.58/Mo. $1.47 6.1% (16.3%Annual) 66
01/1/98 $27.68/Mo. $2.10 8.2% 66
01/1/99 $29.60/Mo. $1.92 7.0% 66
01/1/00 $31.55/Mo. $1.95 7.0% 66
02/1/01 $33.13/Mo. $1.58 5.0% 66
02/01/02 $36.95/Mo. $3.82 11.5% 68
02/01/03 $41.95/Mo. $5.00 13.5% 71
Increase since 7~26~96 deregulation: $19.96 91%
CHANNEL LINE-UP
FAMILY CABLE
2 KGAN - Cedar Rapids CBS
B?XR - ?AX TV
4 RFXB - FOX
WHA - PRS
gW(~C - NBC
7 [WWL - Waterloo NBC
8 Government Access
9 KCRG - Agc
WQAD - ABC
It QVC
12 I(IIN - Iowa Ci~7 PBS
14 ShopNBC
15 Public Access
16 ?ubiic Access
17 Educational Access
18 CoTamunity RuRerin
19 TV Guide Channel
20 RWRR - TV
21 Cable Harket Place
22 WIse - CBS
23 C-SPAN
24 CSPAN 2
25 ESPN
26 ESPN 2
27 FOX Spem Net Chicago
28 A&E Arts & Ente~[nment
29
30 AHC American Hovie Classics
31 The Learning Channel
32 The H~ory Channel
CHN
34 CHH Headline News
35 HSNRC
36 FOX News
37 CNRC
The Weather Channel
39 Soap Net
40 Court TV
41 HGTV Home & Garden TV
42 Food Network
43 The Travel Channel
44 Hallmark Channel
45 Trinity
46 EWTN Eternal Word Television Network
47 Cartoon Network
48 Disney
49 Nickelodeon/Nick at Night
ARC Family Channel
SI Animal Planet
52 Oiscovery Channel
SCI-U
54 FX FOX C~ble Network
TV Land
56 TNT Tun[e~' Network TV
57 TBS Superstarian
58 Lifedme
59 WE:Women's Encerta'mment
dO liSA Network
6i international
62 RET Black Ente~t~amant Network
CHT Country Husk Television
64 TNN The Ntuiu~ Network
65 VH-I ~,qdeo Hits I
66 HTV Hu~c Television
67 Comedy Centra~
68 ~! Entertainment TV
NEWt.
69 TMC NEW!
70 NSN Home Shopping Network
71 Outdoor Life NEW!
OIGITAL SPECIAL INTEREST
120 Noggin
121 Oiscovery Kids
D7 Trio
161 Game Show Network
162 BBC America
215 Nick Games & Spo~
272 The Science Channd
401 FOX Sportswadd
405 Golf Channel
504 Lifetime Hovie Network
DIGITAL VARIETY PAC
122 Toon Disney
135 H~2
183 E! Style
20[ Discovery Home & Leisure
220 Discovery Health
271 Discovery Civilizarion
273 National Geographic
274 Discovery Wings
275 A & E Riog~hy
276 History International
402 Wisdom TV
403 Outdoor Channel
408 SpeedVision
47t ¥X-[ CounU7
473 YH-I Classic Rock
476 Huch Husk
~;03 Independent [~lm Channel
DIGITAL MULTI-SCREEN PREMIUM GROUPS
HBO GROUP
550 HBO E
552 HBO Plus
554 HBO Fami{y E
556 HBO Signature E
558 HBO Latian E
CINEMAX GROUP
575 Cinemax
577 HoreH~x E
5'/9 Actiani%x E
SROWTIME/TMC GROUP
60[ Showtime £
603 Showtime Too E
605 Showtime Show~e E
607 Sho~me Ex,nme E
609 Showtime Beyond E
615 THC E
627 THC X~ E
641 Snndance E
643 FLg(
STARZUENCORE GROUP
513 WAH E
517 Encore E
518 Encoru W
519 Westerns E
520 Westerns W
~21 Love Stories E
~22 Lave Stories W
523 Mystery E
524 Hystery W
527 True Stories E
528 True Stoas W
529 Action E
S30 Action W
533 STARZ] E
534 STARZ! W
535 STAR~ 2 Theater
537 R[ack STA~
539 STAR~ Family
541 gTR~ 5 Gnome E
542 STARZ] S Cinema W
DIGITAL PAY-PER-VIEW
801~06 Mediacom PP¥
8[8-824 Hediacom PPV
844 Passion Hot
853 Ph~bo~ TV
OiGITAL MUSIC
902 Today's Country
905 Americana
908 Bluegrass
~10 R&B Nip Hep
911 Classic R&R
912 Rock
914 Classic Rock
9IS Alternative Rock
917 Electranica
919 Soft Rock
920 Hit List
921 Party Favorites
922 80's
923 New Wave
924 SoGd Gold Oldies
925 Big Band & Swing
926 Jazz
927 RegaLe
929 Souodscapes
930 Classical Hasterpieces
931 Opera
932 Light CJassica[
933 Show Tunes
936 Gospel
938 For Kids Only
940 Husica Larina
941 Salsa y Helengue
942 Rack en Espafiol
943 Latin Love Songs
944 H~cana
Mediacom is always at your service~from the best quality programming to fast, reliable Internet access service. At this time we are pleased
to announce the addition of the following channels effective on or about February I, 2003:
ShopNBC (14)
TCId (69)
Outdoor Life (7 I)
In addition,we continually seek ways to keep expenses down so our produc'cs and services will be at the best price possible, However, increased
operational costs and cable programming expenses have continued to escalate. At this time, we find it necessary to make some modest
adjustments to monthly rates beginning with your February, 2003 billing statement.
Even with this adjustment, Mediacom continues to be an extraordinary value for access to entertainment and information, The improvements
we have made throughout the year and continue to make every day allow us to better our service and ensure that Mediacom can continue to
serve you with the finest products. Thank you for being a valued customen
Sincerely/
Regional Vice President
Products & SerVices Price List · SerVing Dubuque
INSTALLATION CHARGES MEDIACOI~I ONLINE
Unwired Home Installation ............................. $ 45.00
Wired Home Installation* .............................. $ 30.00
Reconnect .......................................... $ 30.00
Additional Otrdet Same Trip (per outlet) ................... $15.00
Additional Outlet Separate Tri~ (per outlet) ................ $ 30.00
CABLE SERVICES
Family Cab[e ........................................ $ 41.95
Cable Guide ......................................... $
HomeWire Maintenance Plan ........................... $ 1,40
Pay-Per-View (PPV) Movies~ . ........................... $ 3.99
DIGITALA LA CARTE PREMIUM SERVICES
HBO .............................................. $ 11.95
Cinemax ........................................... $ 9.95
5hovrdme ........................................... $ 9.95
START! ............................................ $ 9.95
HONTHLY EQUIPMENT RENTAL
Standard Converter and Remote Con~rol .................. $ 4.40
Digital Converter with Remote .......................... $ 5.00
Digital Link (Digital Converter Required) ................... $ 3.00
Meal/acorn Online Service w/Modem Rental ................. $ 45.95
Meal/acorn Online Service w/Modem Rental ................. $ 55.95
Med~acom Online Service - Modem supplied by customer ...... $ 40.95
Mediacom Online Service - Modem supplied by customer ...... $ 50.95
Additional Dynamic IPAddress .......................... $ 5.00
Mediacom Online Installation Fees
IJm~ced Installation .................................... $ 49.95
Premium Installation:
Complete Installation with Ethernet card (NIC) ............ $124.95
Complete Installation without Ethernet card (NIC) .......... $ 99.95
DIGITAL PACKAGESt
Digital Access ........................................ $ 7.00
Digital Choice* ...................................... $15.00
Digital Value* ........................................ $ 23.00
Digital Value Plus* ..................................... $ 30.00
Total Digital ......................................... $ 38.00
DigitalVariety Fac .................................... $ 5,95
How to Contact Us
Call Center 24 hour~ a day/7 days a week:
1-800-824-6047
A $20.00 f'mld collections charge will be
applied to all accounts with unpaid balances
sent to the field for collect~on~
(over)