Mediacom Communications Company CorrespondenceDecember 20, 2013
Mr. Kevin Firntahl
City of Dubuque
50 W. 13th Street
Dubuque, IA 52001 -4864
Dear Mr. Firntahl:
'RECEIVED
13DEC26 AMI0:20
Cite Clerk's Office
Dubuque, IA
As you may recall, in May of 2013, Mediacom instituted a Local Broadcast Station
Surcharge equal to the amount of fee increases the local broadcast stations carried on our
channel lineup have taken since January 1, 2012. We instituted the Local Broadcast
Station Surcharge in order to give our customers more transparency into the cost
components that make up their cable bill.
On or about February 1, 2014, Mediacom will be implementing several rate adjustments
outlined below.3 In conjunction with these rate changes and to continue adding more
transparency to our cable bills, Mediacom will begin showing the 5% franchise fee and
1.75% public, educational and governmental access channel fee (PEG Fee) that we pay to
the City of Dubuque as a separate line item.
Product:
Old Rate:
New Rate:
Net Change:
Limited Basic
$28.25
$26.95
($1.30)
Expanded Basic
$46.05
$43.63
($2.42)
Local Broadcast
Station Surcharge
$1.92
$3.53
$1.61
Family Cable
$76.22
$74.11
($2.11)
Digital Plus4
$14.00
$16.00
$2.00
HBO
$16.95
$17.95
$1.00
Showtime
$12.95
$14.95
$2.00
Starz
$9.00
$11.00
$2.00
The decision to make price adjustments is always a difficult one. We are 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, and we adjust rates to cover these increased expenses.
The fees we pay to retransmit local broadcast stations like ABC, CBS, FOX and NBC are
by far our fastest growing programming cost component. Outdated federal laws give the
3 Depending on the terms of their contract, certain customers on promotional rates may or may not receive this rate change at this
time.
4 The Digital Plus level of service is no longer available for purchase by new customers.
Mediacom Communications Corporation
6300 Council St. NE • Cedar Rapids, IA 52402 •
local broadcast stations monopoly power over network and syndicated programming
within their respective market areas. Broadcasters are exploiting their monopoly powers
to drive up cable and satellite rates, and, thereby, forcing American consumers to pay
billions of dollars annually for "free" over - the -air television. By using the Local
Broadcast Station Surcharge to show the unjustified fee increases being taken by local
broadcast stations, we hope to draw the attention of consumers and their elected
representatives to this rapidly escalating problem.
Despite the business challenges we face, Mediacom appreciates the opportunity to
continue to serve your community's telecommunications needs. If you have any
questions, please contact me directly at 319 - 395 -9699 ext. 3461 or
Sincerely,
Lee Grassley
Senior Manager, Government Relations