Metrocast rate increase -- 6%??

[This'nThat]

Did anyone else notice that Metrocast raised their rates by 6%? I just sent a message to them demanding that they roll back their rate increase and start looking for some cost savings instead. Did anyone's salary increase by 6%? Mine didn't. Is inflation running anywhere close to 6%? Not hardly. Did we get 6% worth of service quality increase from Metrocast this year? I didn't.

What gives them the right to do this? One word -- Monopoly. This, apparently, is what you get with a monopoly -- no price pressure at all. I wonder why they didn't simply increase rates by 20%, or 30%, just to really stick it to us.

[soxie]

I am also disgusted by Metrocast's frequent rate increases- but 6% is outrageous! I guess we are paying for the digital conversion that we didn't ask for. Also is anyone else upset about Fairpoint changing E-mail addresses? This is going to be a huge inconvenience for me....... I would switch to Direct TV but have been told I would not be able to get Boston news channels which I watch frequently.

[brk-lnt]

Originally Posted by This'nThat

Did anyone else notice that Metrocast raised their rates by 6%? I just sent a message to them demanding that they roll back their rate increase and start looking for some cost savings instead. Did anyone's salary increase by 6%? Mine didn't. Is inflation running anywhere close to 6%? Not hardly. Did we get 6% worth of service quality increase from Metrocast this year? I didn't.

What gives them the right to do this? One word -- Monopoly. This, apparently, is what you get with a monopoly -- no price pressure at all. I wonder why they didn't simply increase rates by 20%, or 30%, just to really stick it to us.

It's been a while since I was heavily involved in the cable tv industry (I worked in the industry and sat on the telecommunications board in my last town). The majority of the pricing is fairly well regulated by the FCC as I recall. They can charge so much for every channel in the basic lineup, etc. A lot of the prices are passed on to the MSO's by the content providers (HBO, etc.).

While I wouldn't hold them blameless, this is also not likely a case of Metrocast just randomly deciding to grant themselves a raise.

Metrocast may be the only catv company in the area but they are certainly not a monopoly. You can get over the air or satellite TV options, although you may find you like the channel lineup on Metrocast better.

Cable TV is really a luxury item when it comes down to it. If you don't like the prices, don't buy it. Voting with your wallet will carry more merit and influence than a letter "demanding" they adjust their pricing structure to what YOU deem reasonable.

I would also recommend (and this is directed more towards soxie) that you setup your own email account that is not tied to your Internet provider. There are plenty of free options (gmail, etc), that way when you change providers, or your provider changes names, people aren't left wondering how to reach you.

[gravy boat]

Yes, the rates go up up up. And our ROI is zero.

[ishoot308]

Originally Posted by soxie

I am also disgusted by Metrocast's frequent rate increases- but 6% is outrageous! I guess we are paying for the digital conversion that we didn't ask for. Also is anyone else upset about Fairpoint changing E-mail addresses? This is going to be a huge inconvenience for me....... I would switch to Direct TV but have been told I would not be able to get Boston news channels which I watch frequently.

Soxie;

I had Metrocast and dumped them a few years back because of their constant rate increases. I went to Dish Network and never looked back. Much cheaper than Metrocast, better picture quality, more high definition stations, and yes I do get local channels for a SLIGHT increase in fees. They also allow me to take one of the boxes from my home and use it in my motorhome anywhere in the US for FREE!! Thats right FREE!!

The only drawback is if you do not have another source for internet service. Luckily my phone service also offered DSL so all was good with me. Right now I have phone service and internet through my local phone provider and Dish for the TV. Internet service through Dish is expensive.

Go Dish and never look back!! You won't regret it!

Dan

[This'nThat]

Originally Posted by brk-lnt

Cable TV is really a luxury item when it comes down to it. If you don't like the prices, don't buy it. Voting with your wallet will carry more merit and influence than a letter "demanding" they adjust their pricing structure to what YOU deem reasonable.

You missed the whole point. "Don't buy it" only works when there's competition. And I don't know of anyone who thinks cable TV and internet are luxuries anymore, especially when you have a home office. I have every right to expect not to be gouged. Metrocast increased my rates -- with no warning, no explanation. They just assume I'm going to shut my mouth and do what you suggest -- not give them a hard time. Well, I am going to give them a hard time; and I do expect to engage into a discussion; and I will complain and expect them to show me details, facts, and figures. Then I'll decide what to do. But, keep quiet and simply shut down because it's a "luxury"??? -- I don't think so.

[upthesaukee]

Our cost with Metrocast has gone up from 91.17 per month to 100.22, for cable and internet. That's a 9% increase over three years, or 3% per year. I'm not upset over that.

I have good cable reception and internet stays up virtually all the time I have electricity.

I know that in Alton they are still adding newer lines, and unfortunately because of Union Telephone, we can not get the VIP package.

Sorry you're unhappy...sure beats worldpath's DSL.

[wifi]

Metrocast probably has a franchise with the town you are in. You might check with the town to see if they are interested in your negotiations.

[brk-lnt]

Originally Posted by This'nThat

You missed the whole point. "Don't buy it" only works when there's competition. And I don't know of anyone who thinks cable TV and internet are luxuries anymore, especially when you have a home office. I have every right to expect not to be gouged. Metrocast increased my rates -- with no warning, no explanation. They just assume I'm going to shut my mouth and do what you suggest -- not give them a hard time. Well, I am going to give them a hard time; and I do expect to engage into a discussion; and I will complain and expect them to show me details, facts, and figures. Then I'll decide what to do. But, keep quiet and simply shut down because it's a "luxury"??? -- I don't think so.

There *is* competition, you just don't want to consider the other options, so instead Metrocast should price their services to YOUR budget?

Cable TV is hardly a neccessity. And I don't think you have the slightest clue about their operating expenses, content provider fees or other overhead. You're just whining.

Why do some research and see how their prices are structured? From what I can see from a quick look, Viacom recently raised THEIR rates, which is probably part of this 6% increase you're seeing.

In any event stomping your feet with no understanding of the economics involved is not likely to get you anywhere, but if it makes you feel better, go for it.

[soxie]

Originally Posted by upthesaukee

Our cost with Metrocast has gone up from 91.17 per month to 100.22, for cable and internet. That's a 9% increase over three years, or 3% per year. I'm not upset over that.

I have good cable reception and internet stays up virtually all the time I have electricity.

I know that in Alton they are still adding newer lines, and unfortunately because of Union Telephone, we can not get the VIP package.

Sorry you're unhappy...sure beats worldpath's DSL.

Well if everything goes up 3% a year except our salaries then we (or most) of us are in trouble.

[This'nThat]

Originally Posted by brk-lnt

There *is* competition, you just don't want to consider the other options, so instead Metrocast should price their services to YOUR budget? You're just whining.

It's my thread, and I'll whine if I want to.

Cable vs. Satellite or DSL is not competition. That's like saying there's competion between a convertible and a truck. Those are two very different packages, designed for two very different customers' needs. If I want a truck, and someone says my option is a convertible, I would say -- that's not an option. That's a totally different product.

Competition is Metrocast vs. Comcast, for example -- two companies offering the same services over the same medium -- high speed cable, with package deals like TV, internet, and phone.

So, you shouldn't be telling me I am whining. I'm pointing out that there is no competition -- thus, there is no competitive constraint on prices. Who's at fault here? I don't care (but you seem to want to point the finger at others -- that's fine, but it doesn't change the fact that there's no competition). I am very much based in reality, and I will complain. BTW, complaining about a price increase is not stomping my feet. Where do you come up with these outrageous comparisons?

[Little Bear]

If we're exposing ripoffs here, then let's expose NH Electric Coop. Talk about a monopoly taking advantage of the situation! These clowns claim they are "Non-Profit" (or Not for Profit - not sure which), and on top of it all, they are not regulated by the NH Public Utilities Commission. They have a license to steal. I'm sure a lot of forum members are also "members" of NH Electric Coop as well and I'm sure you notice the $20.00 "member fee" every month on your bill. Well, I have three meters with NHEC and pay $20.00 "member fee" for each meter. When I call NHEC and protest that I should only pay one member fee of $20.00 per month, the "member fee" magically changes to a "meter fee". Therefore, I pay these robbers $60.00/month right off the top. There is no bigger ripoff in NH as far as I'm concerned.

[This'nThat]

You're exactly right about NHEC. That $20 goes right into their pockets, and we have no choice at all. Again, it's all about competition. If PSNH were a choice, that $20 fee would go away. PSNH isn't a choice, so the fee stays. Monopolies, in general, aren't good.

[brk-lnt]

Originally Posted by This'nThat

So, you shouldn't be telling me I am whining. I'm pointing out that there is no competition -- thus, there is no competitive constraint on prices. Who's at fault here? I don't care (but you seem to want to point the finger at others -- that's fine, but it doesn't change the fact that there's no competition). I am very much based in reality, and I will complain. BTW, complaining about a price increase is not stomping my feet. Where do you come up with these outrageous comparisons?

Most towns welcome a competitive cable company, but the financial logistics make it unprofitable for more than one operator to exist in areas where there is not a lot of subscriber density.

If Comcast came in, they would both have to charge about 40% above the current rates to cover the cost of the cable plant spread over a smaller overall subscriber base.

And again, you have no clue how the prices are actually set and how little control the cable companies truly have over their prices.

[This'nThat]

Originally Posted by brk-lnt

... but the financial logistics make it unprofitable for more than one operator to exist ... If Comcast came in, they would both have to charge about 40% above the current rates ...And again, you have no clue how the prices are actually set and how little control the cable companies truly have over their prices.

So, in an era of deflation, massive job loses, declining property values, plunging commodity prices, and a recession -- Metrocast is justified in raising its prices by 6% and I should just shut up and be happy about it -- because I don't have a clue? Ain't gonna happen, because in spite of all of Metrocast's not-yet-explained excuses, and in defiance of your superior (but not very specifically-stated) knowledge of cable-company finances, their rate increase isn't justifiable. And, instead of "supposing" a 40% increase in rates if Comcast came in too (where did you get that unsuported number?), let's just try it and see. I want options. I don't want to keep my mouth shut and let "Big Cable" dictate my options.

[brk-lnt]

Originally Posted by This'nThat

And, instead of "supposing" a 40% increase in rates if Comcast came in too (where did you get that unsuported number?), let's just try it and see. I want options. I don't want to keep my mouth shut and let "Big Cable" dictate my options.

As I recall, that was roughly the price increase that was discussed when I sat on the Telecommunications Committee Board in Huron Township, MI. That was close to 10 years ago, but not too much has changed.

You can't just bring in a competitor, another company has to WANT to offer service in a region. There are not enough subscribers in all of Metrocasts subscriber base in the Lakes Region for any other traditional MSO to consider offering competitive service around here. Of course, if you really wanted to pursue this you could put your money where your mouth is and work with your towns communications committee to explore how you might lure another MSO to overbuild in your region.

Unfortunately the current state of the economy or unemployment rates really have nothing to do with the price structure of optional consumer services like cable tv.

I'm not going to do your homework for you, but it really looks like the current rate increase would be most closely attributed to Viacoms rate increase that they push down to the MSOs.

[This'nThat]

Originally Posted by brk-lnt

Unfortunately the current state of the economy or unemployment rates really have nothing to do with the price structure of optional consumer services like cable tv.

That's kinda like saying "We need the Car Company bailout because we pay our Union workers when we shut down factories; we pay laid-off union workers for sitting around; and we don't have to be competitive because we're the Big 3". And when you get right down to it, aren't cars optional (ride a bike); telephones (didn't have thm in 1859, you know); or even houses with toilets (I can remember the times growing up when we only had outhouses)? I've already said cable is necessary when you have to access the internet for a home business (see here for a similar take on this); and if car companies (and everyone else) have to change their business model to meet the current economic conditions, then so do cable companies. I really don't care what cable companies or car companies did 10 years ago; or even last year. I care about what's happening now, in the current economic climate. I believe they need to change their business model, and stop assuming we can all "just afford" whatever they want to charge. And I really don't buy your competitive argument. Cable TV companies still have some restrictions competing in the same area (see here); those restrictions need to be remove.

[secondcurve]

Originally Posted by This'nThat

That's kinda like saying "We need the Car Company bailout because we pay our Union workers when we shut down factories; we pay laid-off union workers for sitting around; and we don't have to be competitive because we're the Big 3". And when you get right down to it, aren't cars optional (ride a bike); telephones (didn't have thm in 1859, you know); or even houses with toilets (I can remember the times growing up when we only had outhouses)? I've already said cable is necessary when you have to access the internet for a home business (see here for a similar take on this); and if car companies (and everyone else) have to change their business model to meet the current economic conditions, then so do cable companies. I really don't care what cable companies or car companies did 10 years ago; or even last year. I care about what's happening now, in the current economic climate. I believe they need to change their business model, and stop assuming we can all "just afford" whatever they want to charge. And I really don't buy your competitive argument. Cable TV companies still have some restrictions competing in the same area (see here); those restrictions need to be remove.

Sit down, shut the cable off, catch your breath and relax. I hope you have a Happy New Year.

[This'nThat]

Originally Posted by secondcurve

Sit down, shut the cable off, catch your breath and relax. I hope you have a Happy New Year.

That's a welcome suggestion. Well thought out. Artfully expressed. To the point. Boils it all down in a nutshell, and is good advice for the ages.

I think I'll just ignore it.

[Argie's Wife]

Originally Posted by Little Bear

If we're exposing ripoffs here, then let's expose NH Electric Coop. Talk about a monopoly taking advantage of the situation! These clowns claim they are "Non-Profit" (or Not for Profit - not sure which), and on top of it all, they are not regulated by the NH Public Utilities Commission. They have a license to steal. I'm sure a lot of forum members are also "members" of NH Electric Coop as well and I'm sure you notice the $20.00 "member fee" every month on your bill. Well, I have three meters with NHEC and pay $20.00 "member fee" for each meter. When I call NHEC and protest that I should only pay one member fee of $20.00 per month, the "member fee" magically changes to a "meter fee". Therefore, I pay these robbers $60.00/month right off the top. There is no bigger ripoff in NH as far as I'm concerned.

AMEN!

And did you know that NHEC is planning THREE price hikes in the next 12 months? No kidding. They should total to another 40% increase.

But wait - didn't they just have a huge increase in 2008?

Yup. They did. And it was about 40% then.

When I contacted my state reps to complain I heard NOTHING back from all but one of them who had the nerve to complain that she couldn't get cable where she lived. (Boo-hoo.) Cable isn't a "need" - electricity is a need - at least in the modern world we live in. (Please don't think I'm dismissing your point This'n'That - not at all.)

----------

ThisNThat - Do you have Verizon in your area? If so, maybe check if they are offering their new FiOS service - it's like cable but with more channels for less money. There's also web TV but there may be issues with local channels.

[RLW]

Originally Posted by This'nThat

It's my thread, and I'll whine if I want to.

Cable vs. Satellite or DSL is not competition. That's like saying there's competion between a convertible and a truck. Those are two very different packages, designed for two very different customers' needs. If I want a truck, and someone says my option is a convertible, I would say -- that's not an option. That's a totally different product.

Competition is Metrocast vs. Comcast, for example -- two companies offering the same services over the same medium -- high speed cable, with package deals like TV, internet, and phone.
So, you shouldn't be telling me I am whining. I'm pointing out that there is no competition -- thus, there is no competitive constraint on prices. Who's at fault here? I don't care (but you seem to want to point the finger at others -- that's fine, but it doesn't change the fact that there's no competition). I am very much based in reality, and I will complain. BTW, complaining about a price increase is not stomping my feet. Where do you come up with these outrageous comparisons?

The highlighted section are the exact same type and both have you over a barrel and charge absorbent prices and seem to raise the prices at a whim. I hear the part that is holding them from getting Metrocast phones in Alton is the existing phone numbers. Union doesn't want to let them go with the Metrocast phone system.

[Lakegeezer]

With all the new digital technology in the cable system, why can't they move to a "pick your channels" pricing model? There are probably 20 or so channels I'd choose to have out of the well over 100. If the cable companies knew who subscribed to each channel, they'd have more leverage back to the content providers when price increases loomed. I'm on the Time Warner system and am pretty unsatisfied with the channels offered and the quality of their internet service. There has to be a better way.

[Argie's Wife]

I thought you might like to know that Metrocast has applied to be a CLEC and offer service in the Union Telephone service areas. No docket open as of yet, and who knows how long it will take, but the first step has been taken.

If you're interested in moving this along, perhaps call or email Metrocast's VP of Advanced Services, Josh Barstow, at jbarstow@metrocast.com. This is something that I've been working on for a while now with another Alton citizen - we'd love the help!

[Argie's Wife]

Originally Posted by Lakegeezer

With all the new digital technology in the cable system, why can't they move to a "pick your channels" pricing model? There are probably 20 or so channels I'd choose to have out of the well over 100. If the cable companies knew who subscribed to each channel, they'd have more leverage back to the content providers when price increases loomed. I'm on the Time Warner system and am pretty unsatisfied with the channels offered and the quality of their internet service. There has to be a better way.

I've spoke with Metrocast about this in the past - it's called "a la carte" service. They said they're looking into offering it but weren't sure when/if it would be a reality.

With the tough economic times that folks are facing now I'm curious as to the backlash that we'll see from these things. For example, I'd expect more entertainment from grass-roots efforts, such as a local or public TV channel. I'd certainly love to see less of the corporate owned radio stations, etc.

[brk-lnt]

Originally Posted by Lakegeezer

With all the new digital technology in the cable system, why can't they move to a "pick your channels" pricing model? There are probably 20 or so channels I'd choose to have out of the well over 100. If the cable companies knew who subscribed to each channel, they'd have more leverage back to the content providers when price increases loomed. I'm on the Time Warner system and am pretty unsatisfied with the channels offered and the quality of their internet service. There has to be a better way.

This has been an FCC topic as recently as January of last year. There was (no surprise) a lot of debate and push-back on it, along with some controversial studies on the actual costs and per-channel costs of a la carte models.

There is a high probability it will happen in the next couple of years, but not before a lot of backlash by the minority channels.

[Waterbaby]

I'd go see my local selectmen, for starters.............. to the best of my recollection, having worked for my town in the past, the selectmen have to every so often sign a contract with the companies who provide cable, etc. to the townspeople and I believe that includes rate increases. My bill from Comcast even states to go see the Board of Selectmen members for questions as they are the "overseers" of the contract with the town. I may be totally off-base with this advice, but it's at least worth a phone call to express your displeasure!

[fatlazyless]

Did anybody mention that PSNH, the Public Service of New Hampshire has received permission from the NH Public Utilities Commision to raise their electric rates by 3.8% in 2009. PSNH had asked for a ten percent raise due to high oil prices and settled for 3.8% when oil prices fell.

The members of the SEA, State Employees Assn, which is a union representing 15000 NH state employees will be getting a 5.5% raise starting this month.

So, what state revenue source will pay for that; business profits, real estate transfer, or the 8% lodging & meals?

[brk-lnt]

Originally Posted by Waterbaby

I'd go see my local selectmen, for starters.............. to the best of my recollection, having worked for my town in the past, the selectmen have to every so often sign a contract with the companies who provide cable, etc. to the townspeople and I believe that includes rate increases. My bill from Comcast even states to go see the Board of Selectmen members for questions as they are the "overseers" of the contract with the town. I may be totally off-base with this advice, but it's at least worth a phone call to express your displeasure!

You are correct. The franchise agreements are renewed usually every 5 or 10 years (IIRC), and part of that describes rates and pricing.

[kjbathe]

Originally Posted by This'nThat

I've already said cable is necessary when you have to access the internet for a home business.

Cable isn't necessary, it's just the way you get high speed access at home for $40-$50 a month vs. the $300+ it would cost to get it through a traditional ISP. So, there IS competition. It just happens that cable is most competitive.

I looked at a la carte plans from Comcast in the past. As I recall, it ran about $4 per channel. By the time we selected the 10 channels we'd want (even those we only watch on occasion), it quickly made sense to spend $2 more and just have them all available, even if we only watch 10 minutes of NECN a month. I think that's why they may no longer offer that option -- it was so unattractive that even biggest tight wads out there weren't interested. Me, included. Remember, we're all paying some portion of our bill each month to keep the Golf Channel running for its four viewers.

Cable is expensive, no doubt, but it's not necessary. It's the choice you make to have access and work from home, or not. To have the convenience of a pre-wired connection in your house, or shuffle additional set-top boxes and roof-top dishes around your house. To deal with one relic communications company, rather than having to deal with the phone company, too.

Thank God for Vonage. At least we've eliminated the phone company from our lives.