Mediacom Communications Company Correspondence Copyrighted
December 17, 2018
City of Dubuque Consent Items # 21.
ITEM TITLE: Mediacom Communications Company
SUMMARY: Correspondence from Lee Grassley, Senior Manager of
Government Relations for Mediacom Communications
Company, informing the City of rate adjustments being
implemented on or about January 1, 2019.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
MCC Correspondence Supporting Documentation
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Mr. Kevin Firntahl �
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City of Dubuque ��
50 W. 13th Street '
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Dubuque, lowa 52001-4864 �!
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Dear Mr. Kevin Firntahl:
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The purpose of this letter is to inform you that, on or about January 1, 2019, Mediacom will be i,
implementing the following rate adjustments:1 i
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Product: Old Rate: New Rate: Net Change:
Local Broadcast Station 12.16 14.64 2.48
$ $ $
Surchargez II';
RegionalSports $2.97 $3.34 $0.20
Surcharge
Family N $76.12 $78.12 $2.00
Prime TV $92.12 $94.12 $2.00
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The decision to make price adjustments is always a difficult one.We are very reluctant to raise video ,'
prices because, when we do,we lose subscribers. However, cable and satellite companies are !
constantly being pressured by the programmers we buy from to pay more for the channels we carry. ��
The fees we pay to retransmit local broadcast stations like ABC, CBS, FOX and NBC are by far our fastest �
growing programming cost component. All told,the fees charged by broadcasters, according to SNL '
Kagan,grew from $800 million to$10 billion annually or 1150% between 2009 and 2018.
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The problems with sports programming is equally as alarming. One look at the skyrocketing rights fees !
announced with recent deals and it is easy to see that the marketplace for live televised sports is out of `
control. Broadcast networl<s and national and regional sports networks are shelling out billions of dollars �
for the rights to the NFL, NBA, MLB, NHL,the Olympic Games,World Cup and NCAA football and ;i
basketball. Unrestrained spending has become the hallmark of the sports programming business, and �
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the American consumer,whether a sports fan or not, is left to pay the price. �
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In an effort to bring more transparency to the unjustified fee increases being taken by the owners of ;
broadcast and sports television channels, Mediacom previously introduced a Local Broadcast Station �
Surcharge and a Regional Sports Surcharge. By identifying the cumulative fee increases being taken by i
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'Depending on the terms of each customer's promotional package,these rate changes may not impact a customer �
until their current promotional package expires. !
z Mediacom bills monthly in advance. As a result,the increases for both the Local Broadcast Surcharge and ��
Regional Sports Surcharge are based on our best estimate of the cost increases our company will incur for broadcast �
and regional sports programming. Mediacom will"true up"customer bills in a subsequent month if it turns out that ;
our estimate was too high or too low. '
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these channel owners,we hope to draw the attention of consumers and their elected representatives to ;,
this rapidly escalating problem. �
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Despite the challenges we face, Mediacom has continued to aggressively invest in the communities we ;i
serve.As part of a 3-year, $1 billion capital investment plan that began in 2016,virtually all of the 3 !!,
million homes and businesses across Mediacom's 22 state footprint now have access to 1 Gig broadband '�
speeds.
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In addition, Mediacom has broadly launched a low-cost internet service for low-income customers !
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featuring 10 Mbps download speeds for$9.95 per month. The service, called Connect2Compete, is I;
offered in partnership with Everyone0n and is available to families with students participating in the
National School Lunch Program. Additional information is available at www.mediacomc2c.com. i,
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Mediacom appreciates the opportunity to continue to serve your community's telecommunications �
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needs. If you have any questions, please contact me directly at 319-395-9699 ext. 3461 or i�
Igrassley@mediacomcc.com. ��
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Yours sincerely, ;%
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Lee Grassley
Senior Manager, Government Relations �';'i
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