Mediacom Communications Company Correspondence re: Rate Adjustments Copyrighted
December4, 2017
City of Dubuque Consent Items # 11.
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, 2018.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
MCC Correspondence re: rate adustments Supporting Documentation
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Mr. Kevin Firntahl '�r��x�����'�-�_� �''� �
City of Dubuque �
50 W. 13th Street �
Dubuque, lowa 52001-4864 '�
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Dear Mr. �orntahl: ?
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The purpose of this letter is to inform you that, on or about January 1, 2018, Mediacom will be �
implementing the following rate adjustments: �
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Product: Old Rate: New Rate: Net Change: �
Local Broadcast Station $8.98 $11.21 $2.23 I
Surcharge1 ,,�
Regional Sports $2.61 $2.97 � $0.39 �
� Surcharge
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Family TV $72.58 $76.12 $3.54 �
HD DTA $2.99 $3.99 $1.00 ;I
SD DTA $1.99 $3.99 $2.00 ��
DVR Service (non TiVo) $10.95 $14.99 $4.04 �
Standard Installation Fee $49.99, $74.99 or$99.99 $99.99 Varies '�
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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 j
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 $9.3 billion annually or 1063% between
2009 and 2017.
The problems with sports programming is equally as alarming. One look at the skyrociceting
rights fees announced with recent deals and it is easy to see that the marketplace for live
�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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televised sports is out of control. Broadcast networks 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 basl<etball. Unrestrained spending has become the hallmark �
of the sports programming business, and the American consumer, whether a sports fan or not,
is left to pay the price. ,
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 Surcharge and a Regional Sports Surcharge. By identifying the cumulative fee
increases being taken by these channel owners, we hope to draw the attention of consumers
and their elected representatives to this rapidly escalating problem.
Despite the challenges we face, Mediacom has continued to aggressively invest in the
communities we serve. As part of a 3-year, $1 billion capital investment plan announced in i
2016, Mediacom has been aggressively installing the newest generation of broadband ;
technology throughout its entire internet service territory. As a result, virtually all of the 3 j
million homes and businesses across our 22 state footprint now have access to 1 Gig broadband ;
speeds. �
In addition, Mediacom has broadly launched a low-cost high-speed internet service for low- 'I
incorrie customers featuring 10 Mbps download speeds for$9.95 per month. The service, ��'',
- called Connect2Compete, is offered in pa�tnership with Everyone0n and is available to families �
with students participating in the National School Lunch Program. Additional information is i
available at www.mediacomc2c.com.
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Mediacom appreciates the opportunity to continue to serve your community's 'I
telecommunications needs. If you have any questions, please contact me directly I�
319-395-9699 ext. 3461 or email I�rasslevCc�mediacomcc.corro
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Yours sincerely,
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Lee Grassley
Senior Manager, Government Relations ;
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Mediacom � ��� „��
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6300 Council St NE 7 PO�T�EY��'d61ES
CedarRapids, lA52402 70�6 y�-�p ppQp 8603 7�47 : 02 �P � �.56°
f . 0003218922 NOV 21 2017
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