HomeMy WebLinkAbout931336.tiff We're taking television
into tomorrow
TCI Cablevision of Colorado, Inc.
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5
August 19, 1993
Commissioner Harbert
Weld County
Box 758, 915 10th
Greeley, CO 80631
Dear Commissioner Harbert,
To comply with Federal regulations under the 1992 Cable Act, we will be making some
changes to our channel line-up and fees for service. These changes will take effect on
September 1, 1993. You may remember that originally these changes were to become
effective June 21, but the FCC postponed this deadline and then pushed it up.
Virtually every cable subscriber's service and bill will change over the next two months,
and this will create some confusion. I want to assure you that we are doing everything we
can to minimize the inconvenience to our customers.
Many - but not all - of our customers will see their bills go down slightly. In fact, some may
see their bills stay generally the same, while others may actually see a slight rate
increase.
Why?
Due to the rate formula the government requires that we use, we have reallocated our
rates in ways that may cause differences from house to house. This also means that while
some individual items on their bills will go down, others will go up. More specific
information is included in this packet.
We realize these issues are confusing for all concerned. We have tried to make all these
changes at once to minimize the inconvenience to our customers.
We realize that the speed with which these changes have come may be frustrating to
customers. Please remember that we are complying with the new federal law in the
timeframe they have given us. We are doing our best to inform our customers through
newspaper ads, radio, public service announcements, press releases and mailed notices.
Customer notices will be mailed approximately August 25th. The notices are currently at
the printer and I will send your office a samplc s socit as they are available.
In addition, on October 6, we also may be forced to change some of our local broadcast
TV stations.
According to the new federal law, local broadcast stations now have to grant their
"retransmission consent" to be carried on our system, and can negotiate with these
stations down to the last minute.
At the time of this correspondence, TCI of Colorado has not received this retransmission
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consent from KWGN, KCNC, KMGH, KUSA nor KDVR. Negotiations continue.
We want to carry these stations as long as we are permitted to do so, and without any
additional cost to our customers. That is why we will continue to negotiate with these
stations down to the last minute. If we don't receive their consent by October 6, federal
law will require us to discontinue carriage of those stations.
If that happens, we will do everything we can to minimize the inconvenience to our
customers. In most cases, our customers will Still be able to watch those local stations via
an antenna while they have cable. We also will replace the stations with other high
quality programming at no charge to our customers. We will contact you and our
customers when we have a final settlement of this issue.
We recognize that you may receive questions as these changes take place.
I am available at the office at 356-1079, or can be reached at my home at 353-2386 to
answer any questions or concerns. My staff and I are also available for a more detailed
briefing.
We will continue to keep you informed of any new developments.
Sincerely,
Ka�ewart
General Manager
WHAT ARE
THE CHANGES?
Customer bills
TCI Cablevision subscribers will see changes in the appearance of their monthly cable
bills
* displaying a specific breakdown of cable service and charges,
* including the address of the franchising authority-in other
words, the city address-and the FCC community unit number for system
franchise identification.
Fees for Cable Service
TCI Cablevision customers will see changes in their monthly bills depending upon the
services they have. On the average, Greeley area customers, including those in
Evans, LaSalle, Garden City and portions of Weld County, will see a decrease of $.30
on their monthly cable bills.
Here's why...
OLD RATE SEPTEMBER 1 DIFFERENCE
Service Description
Basic Only (no equipment) $10.00 9.41 -.59
Basic Plus $10.95 12.10 +1.15
Basic and Plus $20.95 $21 .51 +.56
Equipment Charges
Remote control hand units $.08 --
'(currently included in converter charge)
Set top converter $1 .00 $.57 -$.43
Standard converter $2.95 $.57
with remote hand unit $.65 -$2.27
Pay-per-View converter $3.95 $2.46 -$1 .49
with remote hand unit $2.54 -$1 .41
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Premium Services
Individual Premium Package Premium Prices
(per month) (per month)
HBO $8.95 Any two Premium Services $15.90
The Disney Channel $8.95 Any three Premium Services $22.85
Showtime $8.95 Any four Premium Services $29.80
Cinemax $8.95
Encore $1 .75* Add Encore to any other
Premium Service $1 .00
• Only change in any premium service is the$.25 increase to Encore as a single service.
Installation and Repair
Unwired Home Installation $ 51 .15*
Restart/Reconnect Home Installation $ 25.58*
Additional Connection at Time of Initial Installation $ 8.53*
Additional Connection Requires Separate Installation $ 25.58*
Move Outlet $ 25.58*
Upgrade of Optional Service (Non-Addressable) $ 17.05*
Connect VCR at Time of Initial Installation $ 8.53*
Connect VCR Requiring Separate Installation $ 17.05*
Connect FM at Time of Initial Installation $ 8.53*
Connect FM Requiring Separate Installation $ 17.05*
Install DMX at Time of Initial Installation $ 8.53'
Install DMX Requiring Separate Installation $ 17.05*
PurchPurchase A/B Switch $ 5.00
Install A/B Switch at Time of Initial Installation $ 5.68*
Install NB Switch Requiring Separate Installation $ 17.05*
Non-sufficient funds charge $ 15.00
Administrative Fee for delinquent payment $ 3.00
Unreturned Standard Converter Charge $ 75.00
Unreturned Addressable Converter charge $ 150.00
Prices do not include franchise fees or taxes except where denoted. All prices are subject to change.
* These prices are formulated by using the Hourly Service Charge (HSC) as prescribed by the Federal
Communications Commission formulas multiplied by the average time for each installation activity based upon
historical data.
To illustrate changes, let's examine these subscribers' monthly bills for the same
services and see the difference between charges as of August 1st and September 1st.
Service Description Old Rate As of Sept. 1 Difference
Subscriber #1
Basic and Plus $20.95 $21 .51 +$.56
with cable ready set, no equipment
and no premiums
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Subscriber #2
Basic and Plus $20.95 21 .51 +.56
one PPV converter w remote $3.95 2.54 -1 .41
one set top $1 .00 .57 -.43
HBO and Encore $9.95 9.95 QQ
$35.85 $34.57 -1.28
Subscriber #3
Basic and Plus $20.95 21 .51 +.56
one sound converter w remote 225 aa -3.27
$24.90 $22.16 -2.74
You can imagine the variety of possible scenarios and the differences in charges that
could occur. As a City official, if you would like to see the FCC worksheets from which
these rates were derived, feel free to contact me at the Greeley office, 356-1079. •
Perhaps the following pages will help answer more questions.
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TALKIL4G
PoINTs/Q&As
Q: What is the 1992 Cable Act?
A: In October of 1992, Congress passed a bill that regulates certain activities of
cable television companies. In the spring of 1993, the Federal
Communications Commission (a.,C,), which is charged with enacting the
law, began issuing its comprehensive and complex regulations for the 1992
Act.
Q: What does the Cable Act regulate?
A: The Act regulates many things, including:
1) What cable companies can charge for certain levels of service.
2) The type of programming available on certain levels of service.
3) It gives local broadcast TV stations the option to demand carriage on a
specific channel on the cable system or to negotiate their consent to be
carried. If a station chooses negotiation, the cable operator cannot carry
the station unless an agreement is reached and the TV station gives its
"retransmission consent."
Q: What do the regulations mean to TCI customers?
A: It means that over the next couple of months, TCI will make numerous
changes to almost every aspect of its business — including rates, services,
channel line-ups and billing. On the whole, these changes will be good.
But there will be some unintended consequences of the Act that might
cause some short-term confusion and inconvenience.
Q: I've heard that cable bills will go down anywhere from 10 to 15
percent. Is that true?
A: The FCC issued "benchmark" rates in May of 1993. These rates are the
standard that cable companies must reach by September 1, 1993. Even
before the benchmarks, TCI's rates were some of the lowest in the country.
Consequently, TCI customers will not see dramatic decreases in their bills.
The average bill for the entire cable industry— over 57 million customers
— will go down. Your company's billing system will automatically adjust
your bill to the effective date of September 1.
Q: I noticed that some of my services have gone up. Others have gone
down. I also noticed that my rates are different than my neighbor's.
Why is that?
A: To meet the government benchmarks, cable companies have reallocated
their rates. As a result, some service levels actually might increase in price
while others may decrease. On the average, a customer's total bill should
go down slightly. This reallocation, however, creates differences in rates
from system to system and sometimes from house to house, depending on
which franchise the person lives in.
Subscriber #2
Basic and Plus $20.95 21 .51 +.56
one PPV converter w remote $3.95 2.54 -1 .41
one set top $1 .00 .57 -.43
HBO and Encore $9.95 93_5. .00
$35.85 $34.57 -1 .28
Subscriber #3
Basic and Plus $20.95 21 .51 +.56
one sound converter w remote LK ,a -3.27
$24.90 $22.16 -2.74
You can imagine the variety of possible scenarios and the differences in charges that
could occur. As a City official, if you would like to see the FCC worksheets from which
these rates were derived, feel free to contact me at the Greeley office, 356-1079. •
Perhaps the following pages will help answer more questions.
-3-G
Q: I thought I was going to get a rate decrease—my bill went upl
A: The government issued a formula we were required to use to change our
rates. Essentially, we were required to reallocate many of our charges
among services and equipment charges. In our case, this ended up in an
increase to many customers' bills. Overall, TCI's rates were below the
national average, so many of our customers will not see a rate decrease.
We are complying fully with the government's new regulations.
Q The government doesn't require that you raise rates. Why are you?
A: The government requires that we use its new formula to set our new rates.
It is important that we are able to reinvest in our equipment, programming
and customer service so that we continue to bring our customers what they
want. The government has essentially changed the way we do business
and how we charge for our products. We had little choice but to begin
charging the rates required in the regulations.
Q: So why are my premium rates going up?
A: For many years, we have kept premium rates artificially low, and now we
need to raise them slightly. We are presently creating several premium
discount packages that will enable our premium customers to get more
programming for less cost than ever before.
Q: When will I see changes in my bill? Can I take a credit now?
A: Please do not take a credit. Our billing service will automatically compute
adjustments on your bill. Most customers will not see the change until their
October bill. At that time, they will also receive an adjustment dated back
to the effective date of September 1.
Q: I get my bill in the middle of the month. What happens to me?
A: Customers who are on a mid-month billing cycle will see a confusing bill.
Half the bill will be for the old rates, half for the new. Regardless, all
adjustments will be prorated back to the September 1 effective date.
Q: I noticed that my channel line-up doesn't look the same. What
happened?
A: In certain systems, because of the new regulations, cable companies have
had to delete channels to make way for local TV stations that by law they
now "must carry." Moreover, in order to improve the value of their service
levels, cable companies also have repositioned channels. TCI has tried to
make all these changes at once to minimize the inconvenience to its
customers.
Q: I've heard that I may lose our local TV stations from our cable
service. Is that true?
A: By October 6, 1993 under the Cable Act, cable television companies must
have reached an agreement with your local TV stations to continue carrying
their signals. Many TV stations now want a fee from the cable company to
give what has become known as "retransmission consent." At TCI, we
believe it is unfair for our customers to be forced to pay for TV that others
are watching for free. TCI is negotiating with these local stations and
networks so that everyone wins. If, however, a local TV station has not
given its consent to be carried by the FCC deadline of October 6, the cable
company will be forced by law to remove that station from its system. If
that happens, the cable company will find ways to minimize any
inconvenience to its customers.
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