Rate increase due to rising operation costs

Published 12:00 am Thursday, April 30, 2009

NATCHEZ — While raising cable rates is not favorable, it’s become a necessity, Cable One Manager Bobby McCool said.

Beginning June 1, the average Cable One customer will experience a rate increase of 4.8 percent.

McCool said the genesis of the rate is increased operating costs.

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“Our gasoline for our vehicles, utilities, all operating expenses (have gone up),” he said.

McCool said the impending switch from analog to digital television on June 12 has not caused a need for rate increases.

Earlier this year, Cable One ran a fiber optic cable from Natchez to Jackson to clear up historically fuzzy channels and to recover a few channels that would have been otherwise lost in the transition.

“There was some expense in doing that, but (the rate increase) is not a result of that,” he said.

The most basic cable package for channels 2 through 13 is $20 a month and will not be affected by the rate change. The next level up for all of the basic channels is $46 a month and will be bumped up to $50 a month after the increase.

All Cable One customers will be notified of the increase as part of their May cable bill.

McCool said the last cable rate increase was 18 months ago.

He said he anticipates that after the increase — like the last — some customers will drop Cable One and others will take the increase in stride.

“People can choose what they can afford, we offer different packages,” McCool said.

He said each year Cable One evaluates its costs and operating expenses and adjusts rates as necessary.

“We normally do not take an increase every year,” he said.

McCool said does not see another increase in the near future.