Thread: Charter raises rates (Greenville)

Cable company blames 'spiraling' programming costs

Charter Communications Inc. says many customers will see higher rates on March cable and Internet bills because of the "spiraling" cost of television programming -- particularly sports channels -- and other business expenses like gasoline for trucks.



The price of basic cable in Greenville will jump from $16.95 to $17.95 per month, while other plans could increase more, said spokeswoman Lizz Walker.

The hike affects all Charter services, including Internet access, although users of some packages, like the $79.99-a-month option that includes digital cable, movie and family offerings, won't be affected.

Walker said it's "pretty typical" to get customer complaints after a rate hike, but that for those concerned about higher costs, "the best thing they can do is get into a package."

City officials said last month that Charter customer service in the third quarter last year was the worst since the company's contract with the city began in 2002, under which it pays a $17,000 fine each quarter it misses service benchmarks.

Charter officials said the problems were because of increasingly complicated products that require more help over the phone, but that they're not adding workers to handle the calls.

City Manager Jim Bourey said Wednesday that although the city could solicit competition from another cable provider based on Charter's customer service record, it can't consider rate increases when renegotiating the contract.

Walker said she's seen customer service improve recently, and that she hopes city officials consider the company's efforts as it looks to renegotiate the franchise agreement, which expires in 2008.

Walker said the cost of programming for the St. Louis-based cable provider is going up 12.8 percent this year, or about $11 million, because programming providers such as ESPN are charging Charter more.

Rates are going up across Charter markets, she said, although the amount of the increases can vary depending on where you live.

Notifications recently mailed to customers include additional service options, Walker said. If customers have a hard time figuring in the new prices with taxes and fees, she said the best thing to do is call Charter's customer service line.


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