Mediacom Communications Company Correspondence Copyright 2014
City of Dubuque Consent Items # 34.
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 3, 2017.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File
ATTACHMENTS:
Description Type
MCC Correspondence Supporting Documentation
Medi-a-com, RECEIVED
November 30, 2016
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Mr. Kevin Firntahl
City of Dubuque
50 W. 13th Street {
Dubuque, Iowa 52001-4864
Dear Mr. Firntahl
The purpose of this letter is to inform you that, on or about January 3, 2016, Mediacom will be
implementing the following rate adjustments:'
Product: New Rate: Net Change:
Local Broadcast $9.04 $1.45 a
Station Surcharge p
Regional Sports $2.61 $0.24
Surcharge
Family TV $72.58 $2.00 1,
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The decision to make price adjustments is always a difficult one. We are very reluctant to raise ry
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
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our fastest growing programming cost component. A recently issued Federal Communications
Commission pricing survey revealed that the monthly per subscriber fee per broadcast station
rose 43% between 2013 and 2014. All told, the fees charged by broadcasters, according to
SNL Kagan, grew from $800 million to $7.7 billion annually or 863% between 2009 and 2016.
The problems with sports programming are 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 networks and national and regional sports networks
are shelling out billions of dollars for the rights to carry pro sports like the NFL, NBA, MLB and
NHL, the Olympic Games, World Cup and NCAA football and basketball games. 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
1 Depending on the terms of their contract,certain customers on promotional rates may or may not receive this rate change at this time.
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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 early
this year, Mediacom has been aggressively installing the newest generation of broadband
technology throughout its entire internet service territory. By year end, virtually all of the 3
million homes and businesses within the 1,500 communities that Mediacom serves across its 22
state footprint will be upgraded to the latest DOCSIS 3.1 "Gigasphere" platform. In doing so,
Mediacom will be first major cable company in the United States to fully transition to the
DOCSIS 3.1 network infrastructure.
As part of these network upgrades, Mediacom will be making major speed and/or data
allowance enhancements to many of our most popular internet services tiers.2 The below table
summarizes the changes to our internet service tiers:
Current Speed Current Current New Speed New New Data
(Up/Down) Retail Data (Up/Down) Retail Allowance
Price Allowance Price
3Mbps/512kbps $29.95 150GB 60Mpbs/5Mbps $34.99 150GB
15Mbps/1 Mbps $49.95 250GB 60Mpbs/5Mbps $54.99 250GB
50Mbps/5Mbps $59.95 350GB 60Mpbs/5Mbps $69.99 40OGB
100Mbps/10Mbps $79.95 999GB 100Mbps/10Mbps $79.99 1000GB
150Mbps/20Mbps $99.99 200OGB 200Mbps/20Mbps $99.99 2000GB
In addition, Mediacom will be announcing the availability of our new Gigasphere powered 1-Gig
service tier in your market in 2017. More details to follow.
Mediacom appreciates the opportunity to continue to serve your community's
telecommunications needs. If you have any questions, please contact me directly
319-395-9699 ext. 3461 or email Igrassley@ nedlacomcc.com
Yours sincerely,
Lee Grassley
Senior Manager, Government Relations
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2 Moving forward, Mediacom will be moving all its 3 Mbps/512kbps, 15Mbps/3Mbps and 50Mbps/5Mbps internet
service customers to a service speed of 60Mbps/5Mbps. The distinguishing feature between these service levels
moving forward will be a data allowance of 150GB, 250GB or 40006.The entry level internet service tier offered to
new customers moving forward will be 60Mbps/5Mbps and include a 4000B data allowance.
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