Red Bay cable rates increase
RED BAY – Rates have gone up for cable subscribers in Red Bay and according to representatives for the city’s cable provider, residents can expect increases for the next two years as well.
On Monday, members of the Red Bay City Council discussed the $5 per month raise that is already showing up on residents’ bills.
Rick Ferrall, the Southern regional manager for the Mississippi-based MetroCast Cable Company, told the council the rate increase is solely because of programming costs.
“Programming costs are totally out of control,” Ferrall said. “The retransmission consent negotiations [with the broadcast companies] are now complete for the stations that cover Red Bay and the smallest rate increase we could negotiate was 100 percent. Some increases could have been as much as 1,000 percent.”
Ferrall said the broadcast companies have raised their prices, which in turn makes cables providers have to go up on their rates.
He said there is no other option but to accept the broadcast companies’ increases because they offer programming MetroCast cable customers want to have.
“We’re absolutely held hostage with what we can do,” he said. “Until Congress steps in, it’s just going to be this way and until there is a public outcry, I don’t think Congress has any intent to get involved. With the lack of action, we’re left with large increases that go right back to our customers.”
Councilman Brad Bolton said his concern was mainly for the Red Bay residents who live on a fixed income that cannot afford an extra $60 per year for cable services.
“These people already have the most basic package and they at least need that for weather purposes, for goodness sake,” he said. “This rate increase has hit them hard.”
Bolton questioned why the increase couldn’t be spread out to other customers who might could afford it, but Ferrall said the increases were across the board for anyone who had basic broadcast stations as part of their package.
“Where we were hit the hardest with increases was the basic stations, so we just put the cost where the cost came to us,” Ferrall said. “We are in business to make money – that’s what every business is in business for – and we don’t apologize for that, but we’re not getting a dime more this year. Your cost went up because our cost went up.”
Ferrall said the current $5 increase is the only anticipated increase for this year, but increases for the next two years could be anywhere from 20 – 70 percent.
“I just encourage you to write your congressmen and let them know about this so they can step in,” he said. “That’s the best way to get it changed.”
In other business, the council:
• Extended the deadline to turn in lifeguard applications for the 2012 season at the Red Bay Water Park to Jan. 27 at 4 p.m.
• Accepted the Red Bay Volunteer Fire Department roster.
• Agreed to adhere to the Manual on Uniform Traffic Control Devices (MUTCD) standards as set forth by the Federal Department of Transportation.
