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Mail Tribune Local News Section
January 6, 2007

Charter cable rates going up, again

Basic cable subscribers, special rate users won't see price hike

Get ready to write a bigger check for your monthly cable bill.

Unless you're one of Charter Communication's Basic Cable subscribers, more than likely the cost of watching television is going up Feb. 1.

Virtually every locale serviced by Charter in the Northwest will see rates going up, said Mike O'Herron, Charter's Southern Oregon general manager.

Expanded Basic Cable, which accounts for 80 percent of Charter's 50,000 Rogue Valley customers, jumps $3 to $50.99 for 78 channels.

"We've had an annual adjustment for at least the last five years," O'Herron said. "This affected probably 97 percent of our service areas; Lakeview was the only city that didn't change in Southern Oregon."

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Although Charter announced the hike several weeks ago, O'Herron says his office has received few complaints or questions.

"Most people won't say anything until the bill actually hits, that's human nature," he says. "Although it's quiet now doesn't mean people won't have questions and comments when they sit down at the table at the first of the month and start paying their bills."

Charter lost some customers when it raised the Basic Cable rate in Medford last August, but O'Herron said the fallout was relatively small.

"The rate adjustment did affect price-sensitive customers, whose budget limitations caused them to leave. But most customers were unaffected."

Some subscribers, who have left their comments on a Mail Tribune forum, were concerned the bargain rates they signed up for were going away, but O'Herron said customers currently on any kind of promotional special rate will not see a rate adjustment until such offers expire.

He said Charter, based in St. Louis, has attempted to standardize rates for its 250,000 Northwest customers.

Like all other cable and satellite companies, more than half of Charter Communications' costs are programming related, ranging from a few pennies per customer to several dollars for networks such as ESPN.

Charter is building a $3.87 million, 3,600-square-foot communications center adjacent to its present 10,000-square-foot Grape Street office in Medford. The expansion will allow Charter to offer telephone and Video On Demand services later this year.

"There will only be two people working in the new building," O'Herron said. "But that will be our nerve center."

He said the company's field staff has been moved to another location.

Reach reporter Greg Stiles at 776-4463 or at business@mailtribune.com

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