Quote:
Originally Posted by brk-lnt
It's been 10 years since I sat on my towns telecommunications committee, but my experience was the exact opposite. In fact, for the basic cable packages the rates were pretty strictly set, and more or less a direct relation to the number of channels offered.
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It *may* be different here, but at the time I was negotiating the contract, the provider admitted to being 40% profitable. THAT is a high profit margin! If I could get that in my business, I'd be absolutely pleased.
Metrocast is more expensive that our local provider for the same services (in fact, quite a bit more expensive), leading me to believe that the rates are not so regulated as to put the company in an economic disadvantage.
We had the same problem in the town in which I live with the local cable provider. There were sections of town not covered, and when the residents got the critical mass to require an expansion, the cable provider balked until we called them on the contract.
Now they're getting somewhere around $90/month per household for the 60 or so homes in the newly serviced area. I figure about 6 months and the entire investment is recouped (by their figures).
Oh well !
Regards,
Steve