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TCI rates going up 5 percent

Staff reports

TCI Cablevision of Nevada will implement a rate hike in the Gardnerville area June 1 for increased costs of programming and inflation. Basic and expanded basic rates will increase by 5 percent to a new rate of $11.25 for Basic and $14.07 for expanded basic. An adjustment will also be made on optional equipment and installation charges, said Carol Eure, TCI Cablevision of Nevada system manager.

This adjustment reflects higher licensed fees TCI must pay to cable programmers, as well as rising operations and equipment expenses, revised inflation figures and certain added franchise costs, she said. The adjustment is in compliance with federal regulations designed to ensure reasonable cable television rates, she added.

“Rapidly escalating license fees for many popular channels often necessitate rate adjustments in order to continue to provide customers with these high-quality programming services,” she said.

“Reasons for increased programming costs vary, but sports programming provides a good example of why this is happening. When a major league baseball team signs a star player for a huge sum of money, some of those costs are passed along to TCI via the programmer that carries the baseball games,” she said.

“The cause and effect relationship means TCI must pass some of these costs through to our customers,” said Eure. “Sometimes difficult decisions must be made whether to recoup those higher programming costs through higher rates or to delete the network.”

The current rate is $10.88 for basic and $13.20 for expanded basic.