Cox isn’t shy in talking about cable rate hikes

Wednesday, May 6, 1998 | 9:08 a.m.

The first question Cox Communications President and Chief Executive Officer Jim Robbins received at a news conference on Tuesday may be indicative of how the public views his company's $1.325 billion acquisition of Prime Cable: How is this going to affect cable rates?

It's going to cost more -- but customers will get additional products when the rates go up, Robbins indicated.

That doesn't mean just more cable stations from which to choose, although that will be part of the package.

"They have created the most sought-after cable property in the country," Robbins said of Prime. "Cox is uniquely positioned to take these businesses to the next level."

Robbins said Cox will add many features in Las Vegas, saying there were "100 different" possibilities of packaging different services with digital delivery.

At the time Cox takes over the system, estimated to be three to six months away, Prime Cable will be about two-thirds finished with a system upgrade that will replace coaxial cable with a fiber-optic network that will open the door to a variety of new services for customers.

Cox is committed to completing the upgrade and implementing the new services, possibly at a faster pace than previously contemplated. Among the possibilities:

Robbins said all of Cox's major cable outlets have affiliations with news channels like Las Vegas 1, the 24-hour cable news network that debuted last month. Cox will have a one-third ownership of Las Vegas 1 with the Greenspun family's Las Vegas Sun and Landmark Communications' CBS affiliate, KLAS Channel 8, when the deal is sealed.

Robbins said Cox would be in a position to offer resources to the new station when the deal closes.

Brian Greenspun, who heads the Greenspun family's business interests, alluded to another aspect of the deal at Tuesday's press conference -- Cox's position in Phoenix and Southern California.

Because fiber-optic cable systems offer the prospect of target marketing, the Las Vegas gaming industry could selectively advertise their properties to a specific demographic in Cox systems in San Diego, Orange County and Phoenix -- which currently are among the top markets from which Las Vegas draws visitors.

Greenspun also said he envisions the prospect of Internet commerce between Las Vegas resorts and Cox's other Internet-access operations.

"Imagine calling up a page on the Web that has a place to click to book reservations instantly," Greenspun said. "I'm just thinking out loud here and don't know how it could be done, but that's just one possibility. I'm sure we could think of 10 more ideas tonight."

But it's all going to cost more. How much more won't be determined until the service is closer to availability.

"People will have to pay for it," Robbins said. "Pricing in 1996 is no longer valid for 1998 services."