Cox plans to lower basic cable rates in Las Vegas

Tuesday, Dec. 4, 2001 | 10:26 a.m.

Southern Nevada's dominant cable television provider has proposed a 15 percent decrease in basic rates, but many subscribers could still pay more for programming when new rates take effect in March.

Cox Communications Las Vegas Inc., owned by Atlanta cable giant Cox Communications, delivered its basic rate proposal Monday to Clark County and the four cities that hold cable television franchises.

Cox has proposed basic service rates of $9.74 a month, which includes a 4-cent-a-month Federal Communications Commission fee. Currently, subscribers pay $11.46 a month, including the 4-cent fee.

The city councils of Las Vegas, North Las Vegas, Henderson and Boulder City and the Clark County Commission will consider rate changes as part of their franchise agreements with Cox early next year. The company proposes new rates to take effect March 1.

Steve Schorr, a Cox vice president, said the rate decrease was proposed because the company recognizes that it is in a competitive battle with satellite television systems for market share. Legislation approved in 1999 enables satellite companies to carry local channels on their systems, a move that would intensify cable-satellite competition.

Satellite companies have to negotiate with each station in each market to accomplish that, a lengthy and expensive process.

The decrease is unusual, as Cox typically raises rates each year. Last year, for example, Cox raised basic rates 3.9 percent.

While Cox's proposed basic cable rate would be lower, some installation and equipment rates would be higher under its proposal.

Roma Haynes, franchise services coordinator for Clark County, said some installation fees would double. Under the Cox proposal, an installation for an unwired home would increase from $20.50 to $39.95 and an installation in a prewired home would jump from $14 to $29.95.

The installation of an additional outlet at the time of an initial installation would increase from $16.25 to $19.95 and an additional outlet installed separately would increase from $20 to $29.95.

The rental for addressable digital converters would increase from $3.35 a month to $3.75.

The rental charge for remote controls would remain at 20 cents a month and the charge for changing service tiers would remain at $1.99, Haynes said.

Schorr said that although basic cable rates would come down under the proposal, it's likely that most subscribers' cable bills would go up next year. The reason: Most subscribers have expanded service -- called "Preferred Basic" service by the company -- and the cost of additional services is still under evaluation.

Schorr said basic service covers channels 2 through 17, which includes the local network affiliates and independent stations and superstations WGN and WTBS. But most of Cox's 370,000 Las Vegas subscribers have additional services, including preferred basic, premium cable stations such as HBO, and high-speed cable Internet access.

The Preferred Basic channel list includes stations such as CNN, ESPN, the Disney Channel, Fox Sports and other specialty programming that reside between channels 18 and 50 and 60 and 78. The premium cable stations are available on channels 51 through 59.

Though not yet official, Schorr hinted that it's likely rate increases are coming for these services, because operating costs have been accelerating over the past year.

Schorr said some of those operations already have informed Cox that they intend to raise rates. And he said Cox has been hit heavily by soaring electricity costs, since its cable system relies heavily on electricity to operate.

Schorr said Cox would review how it would pass increased costs through to subscribers in January and announce probable rate increases for the enhanced service in February to take effect when the basic rate changes.

Applications to make changes to basic rates and installation charges fall under the jurisdiction of local regulators. Price changes for all other services, which may be done once a year, fall under the purview of the FCC.

Cox has about 900 employees in Southern Nevada.

The Greenspun family, owner of the Las Vegas Sun, owns a minority stake in Cox's Las Vegas system.