Time Warner Cable's rates rise
By Kerry Hall Singe
Time Warner Cable has raised the rates for some of its services by as much as 15 percent, blaming sports programs and network television.
The rate hike, which went into effect Sunday, marks the company's fourth consecutive annual increase. Last year, the company raised cable rates between 4 percent and 9 percent, depending on service level, over 2008 prices.
Time Warner spokeswoman Melissa Buscher said about half of the company's half-million Charlotte-area customers won't see an increase because they have discounted bundle packages or other promotions. Their rates will change when their packages or promotions expire.
Another 39 percent of customers will see increases of less than 5 percent, Buscher said.
The higher prices come at a time when the company is battling local stations and cable networks over how much it should pay for their programs, including its high-profile dispute with Fox.
Carolinians, meanwhile, are experiencing some of the highest jobless rates recorded for the area.
Among the monthly rate increases: basic cable rates rose $4 to $58.95, according to a rate sheet mailed to customers. The price of digital cable and unlimited digital phone service nationwide rose $1.05 to $117.95. The price of Road Runner High Speed Online bundled with digital cable will remain the same at $44.95 a month.
In November, the company launched a public relations blitz asking customers whether they'd be willing to pay more to get certain channels. They have been battling local stations, which, to make up for lost advertising revenues, have been asking cable and satellite providers to pay more for their programs. Federal law requires cable companies get agreement from local broadcast stations to carry their programming.
Buscher said some networks, particularly those featuring sports shows, want to be paid 300 percent more.
"No one ever wants to raise prices," she said. "But our programming costs continue to go up and we're forced to adjust the cost of our services.
Time Warner's competitors have announced similar increases for 2010.
AT&T's U-verse cable service, for example, plans increases of $3 to $5, starting Feb. 1. About 2 million people nationally subscribe the service that was launched in North Carolina 13 months ago. The company does not break out regional or statewide subscriber totals. A spokesman said the increases were needed because of higher programming costs and expanded programs.
According to the N.C. Department of Justice, no complaints were filed against cable companies because of rate increases in 2009. The state's consumer protection division takes complaints from consumers with concerns about state-franchised cable companies, including Time Warner.
