AT&T Broadband boosts some rates

  • Eric Fetters / Herald Writer
  • Wednesday, June 5, 2002 9:00pm
  • Business

By Eric Fetters

Herald Writer

AT&T Broadband is raising rates for basic cable television customers and some in Snohomish County with high-speed Internet access.

In parts of Everett where the company recently installed fiber-optic cables that can carry more channels, as well as digital and phone services, the price for basic cable will rise July 1 by $1 a month, from $33.75 to $34.75.

"But that’s with added channels, so the cost per channel actually is going down," claimed Steve Kipp, regional spokesman for AT&T Broadband.

In areas with updated equipment, the standard cable service provides more than 70 channels.

Kipp could not say how many Everett customers will be affected by the increase. The last general rate hike for Snohomish and Island county subscribers to the standard basic service came in January.

Also as of July 1, a higher rate will affect all subscribers to AT&T Broadband’s most basic service of about 30 channels. About 10 percent of customers subscribe to that service, which provides only Seattle-area broadcast stations and a few other channels via cable, Kipp said. On average, bills for the basic service will go up less than $1 a month. In Everett, for example, the upsurge is from $13.45 to $13.75.

Kipp blamed higher programming costs for the slight increase in basic cable rates.

"What many people don’t realize is that we pay for the networks we carry, and those prices go up each year," he said.

The cable TV rate changes come after a larger increase took hold last week for those who have high-speed Internet connections through AT&T Broadband and own their own cable modems. That service, widely available in King County, is limited to parts of South Snohomish County.

"Of that number, you really have a small percentage affected, because it is only the people who own their own modems," Kipp said.

AT&T Broadband reduced the discount on high-speed access that had been given to those with their own cable modems. Previously, those customers paid $35.95 a month, compared with the normal rate of $45.95 for those who lease a modem from the company.

That $10 discount has been cut to $3, so those customers are now paying $42.95 — an increase of about 19 percent.

Kipp said the price break for those with their own cable modems was launched when the devices cost more than $250 each. The modems are now selling for $100 or less, he said.

"Since the price is so low, there’s no reason to offer the incentive anymore," he said.

Meanwhile, customers who subscribe to high-speed Internet service but not AT&T Broadband’s cable TV or phone service, have seen a $4 monthly charge added to their bills. Kipp said about 1 percent of customers are in that category.

While AT&T Broadband’s cable Internet access is not yet available in Everett, it will be soon. Those areas with upgraded fiber-optic cables have the necessary infrastructure, and the company said it will eventually improve its system in most of the city.

Peter Camp, Everett’s assistant city attorney, said the improvements have begun in the north end of the city.

"It’s good business for them, and the new franchise agreement requires them to do it," said Camp, who handles the city’s utility agreements.

AT&T Broadband’s new nonexclusive franchise agreement with the city, which outlines requirements for the cable system upgrades and customer service standards, was approved Wednesday by the Everett City Council.

Camp added that outside of the basic cable TV service, the city has no control over what AT&T Broadband charges customers.

You can call Herald Writer Eric Fetters at 425-339-3453 or send e-mail to fetters@heraldnet.com.

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