raj2001
02-19-03, 10:51 AM
http://www.boston.com/dailyglobe2/050/business/RCN_to_hike_rates_April_1+.shtml
RCN Corp. yesterday increased the price of basic cable TV, telephone, and Internet service by 13 percent and raised the average price of bundled packages of telephone, cable TV, and high-speed Internet access by approximately 8 percent, effective April 1.
The increases will affect consumers in 15 Massachusetts cities and towns, including Arlington, Boston, Brookline, Newton, and Watertown.
In Boston and Arlington, customers will see their monthly bills increase by $5 to $37.95. Consumers in 12 communities will pay $40.95 for the service, $5 more than last year. Somerville residents will pay $34.45, or $4 more per month.
The price of basic phone service will increase about 5 percent to $9.88 per month, up 47 cents. Meanwhile, digital customers who carry RCN's ResiLink Gold package will pay $145 per month, a $12 increase.
ResiLink Gold, the company's most popular product, includes digital cable services, one phone line with unlimited local and regional calling, several phone features, and unlimited high-speed MegaModem Net service. Analog customers will pay $141 per month, or $16 more.
In raising prices, RCN followed the lead of Comcast, a top competitor. Comcast announced last fall that standard cable TV customers would see a price increase of approximately $2.93 per month, beginning Jan. 1. In Chelmsford, standard cable rates rose to $42.25 per month, up from $39.21. Expanded service increased to $33.32, from $30.27. However, basic rates remained at $8.05 for senior citizens and $8.94 for all others.
Like Comcast, New Jersey-based RCN blamed the price hikes on higher operating costs. RCN said programming costs were especially high.
''Programming costs nationwide continue to rise far beyond the rate of inflation due to fees demanded for content by professional sports leagues and Hollywood studios,'' said Robert Sheehan, vice president and general manager for the company's Massachusetts operations.
''We have to pass some of those costs along to our customers.''
Over the past year, pay cable TV networks have increased the prices of the programming and channels marketed to companies like RCN. For example, NESN, a regional sports channel increased its rates 40 percent. ESPN's fees went up 20 percent; HGTV, 11 percent; and The Learning Channel, 10.5 percent.
Even so, a spokesman for the Massachusetts Public Interest Research Group, a nonprofit advocacy group, blamed the hikes on the fact that only a handful of companies offer such services.
''Any time there is a monopoly or close to it, you will have higher prices,'' said Brad Dakake, Masspirg consumer advocate. ''A big reason rates are rising is because companies know they can do it without fear of losing their customer base.''
RCN offers seven bundled packages, and all will increase in price. ResiLink Silver, a basic digital cable service with HBO, one phone line, unlimited local and regional calls, and phone service features will cost $90 per month, or $7 more.
ResiLink Bronze, which includes one phone line with unlimited local and regional calls, phone services, and unlimited high-speed Internet service will increase by $7 to $88 per month.
RCN Corp. yesterday increased the price of basic cable TV, telephone, and Internet service by 13 percent and raised the average price of bundled packages of telephone, cable TV, and high-speed Internet access by approximately 8 percent, effective April 1.
The increases will affect consumers in 15 Massachusetts cities and towns, including Arlington, Boston, Brookline, Newton, and Watertown.
In Boston and Arlington, customers will see their monthly bills increase by $5 to $37.95. Consumers in 12 communities will pay $40.95 for the service, $5 more than last year. Somerville residents will pay $34.45, or $4 more per month.
The price of basic phone service will increase about 5 percent to $9.88 per month, up 47 cents. Meanwhile, digital customers who carry RCN's ResiLink Gold package will pay $145 per month, a $12 increase.
ResiLink Gold, the company's most popular product, includes digital cable services, one phone line with unlimited local and regional calling, several phone features, and unlimited high-speed MegaModem Net service. Analog customers will pay $141 per month, or $16 more.
In raising prices, RCN followed the lead of Comcast, a top competitor. Comcast announced last fall that standard cable TV customers would see a price increase of approximately $2.93 per month, beginning Jan. 1. In Chelmsford, standard cable rates rose to $42.25 per month, up from $39.21. Expanded service increased to $33.32, from $30.27. However, basic rates remained at $8.05 for senior citizens and $8.94 for all others.
Like Comcast, New Jersey-based RCN blamed the price hikes on higher operating costs. RCN said programming costs were especially high.
''Programming costs nationwide continue to rise far beyond the rate of inflation due to fees demanded for content by professional sports leagues and Hollywood studios,'' said Robert Sheehan, vice president and general manager for the company's Massachusetts operations.
''We have to pass some of those costs along to our customers.''
Over the past year, pay cable TV networks have increased the prices of the programming and channels marketed to companies like RCN. For example, NESN, a regional sports channel increased its rates 40 percent. ESPN's fees went up 20 percent; HGTV, 11 percent; and The Learning Channel, 10.5 percent.
Even so, a spokesman for the Massachusetts Public Interest Research Group, a nonprofit advocacy group, blamed the hikes on the fact that only a handful of companies offer such services.
''Any time there is a monopoly or close to it, you will have higher prices,'' said Brad Dakake, Masspirg consumer advocate. ''A big reason rates are rising is because companies know they can do it without fear of losing their customer base.''
RCN offers seven bundled packages, and all will increase in price. ResiLink Silver, a basic digital cable service with HBO, one phone line, unlimited local and regional calls, and phone service features will cost $90 per month, or $7 more.
ResiLink Bronze, which includes one phone line with unlimited local and regional calls, phone services, and unlimited high-speed Internet service will increase by $7 to $88 per month.