Monday, April 9, 2007

Mediacom Raising Cable Rates for Springfield, MO

Mediacom raising rates, cites business expenses

John Taylor
News-Leader

Mediacom is increasing its rates for cable services, but that hike will be smaller for existing customers, said Randy Hollis, the company's senior manager for government relations.The published rate of Mediacom's family-cable package, which includes basic and expanded-basic services, will increase from $48.95 a month to $51.95 a month, he said. However, those who already subscribe to cable service will just see an increase of $1. That information was not included in recent mailings to customers about the rate changes.

"All of us went through some devastation during January's ice storm. ... Through all of that, our customers were very understanding and very patient," Hollis said.

Mediacom customer Lloyd Cunningham said the rate increase was reasonable.

"I can't complain about it," he said. "I went out to the movies last weekend and spent more than I would on cable."
Bev Prochaska, who receives cable, phone and Internet services from Mediacom, said she plans to switch from cable to dish.

However, she indicated she is changing providers more because of Mediacom's service — and customer service — than because of the rate increase.

Hollis said rates are going up because "our cost of doing business continues to rise."

Those costs include fees paid to the different broadcast stations and cable networks as well as health-care costs for employees and the price of equipment.

The rate increase for basic service will be $3.76 per month. However, the expanded-basic rate will decrease 76 cents per month. Since family cable includes both, its published rate will increase $3.

Hollis said new customers might not necessarily pay the published rate because the company offers a variety of promotional packages to attract business.

Bills will include the rate changes beginning April 20.

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