Cable costs rising in 2012 for Lehigh Valley area customers

Core channels will cost about 5 percent more, plus other fees are rising.

Cable rates for Lehigh Valley customers are set to rise again after the new year.

The increases are more than 5 percent, or about $4, for core channels. But once additional fees are factored, plus upticks in the cost of Internet service, the total monthly package could rise $10 or more for some customers.

Cable companies say the hike is driven by increases in programming fees charged by media companies that operate popular networks. Most of that reflects demand for sports coverage, they say.

“It is directly 100 percent related to increases in our programming costs, the ESPNs and the rest of them,” Service Electric General Manager Jack Capparell said. “ … Our hands are tied.”

Increases vary because cable and telecommunications bills are heavily layered and customized to individual preference. Lehigh Valley customers can generally choose between Service Electric and RCN plus satellite providers.

Service Electric's standard package, which includes the basic lineup plus common additions like ESPN and CNN, is rising from $64.99 to $68.49, or 5.3 percent, effective in January billing cycles. Add another $2 or so in new fees and that total rises to just beyond $70.

RCN’s basic lineup plus “signature” package is going up $4, or 5.8 percent, from $69.50 to $73.50.

Additional increases may apply such as a $2 hike for some Internet subscribers as well as the expiration of a promotion that provided certain customers with free digital converter boxes, which will now cost $3.95 a month.

So an RCN customer who bundles cable, phone and Internet service could see a double-digit increase in their total monthly bill.

Many hikes will be smaller because RCN applies discretion based on when a customer signed up and what packages they receive, RCN spokeswoman Joanne Guerriero said.

Guerriero said RCN is aware that certain customers might pare back service to limit their total telecommunications costs.

“There’s always that concern, especially in these economic conditions,” Guerriero said. “We are willing to work with and help our customers pay at a level they’re comfortable with by rightsizing their packages.

“At the same time we have to look out for ourselves as a business so that we can continue to stay in business,” she added.

National figures estimate about one quarter of U.S. households have a cell phone but don’t carry a landline. Rates are higher among young adults and the poor.

Another trend shows that customers who don’t rely on sports or live programming are getting their entertainment fix by ditching cable altogether, opting instead to watch movies and shows online or through mail-order DVDs.

Guerriero said such instances are not common, but may occur among the young or single-member households.

Comcast Corp., which serves customers in Warren and Hunterdon counties, did not break down billing details but said average customers will see a 1.1 percent increase, a trend it also attributed to rising programming costs and operating expenses.

Many customers will avoid increases because they are currently receiving services as part of a promotional offer, Comcast spokeswoman Alisha Martin said via e-mail.

Aside from higher programming license fees, cable companies say the four major networks now want compensation for carrying local affiliates that were previously provided free.

“We’re not in a position to negotiate, they (the networks) more or less dictate,” Capparell said. “We do negotiate but they set the bottom line.”

Capparell said the increase being passed to customers is less than the increased cost of programming. If cable companies absorbed the entire increase, he said “it would destroy our bottom line.”

Current regulations don’t provide much flexibility, he said.

“We really would rather have the option like a cafeteria, where the customers picks the channels they want,” Capparell said. “A la carte would be in everyone’s interest except the programmers.”

While the companies say most of the cost increase is driven by programming fees, system upgrades play a small factor.

All the cable suppliers have rolled out faster Internet speeds and more high-definition channels in recent years. RCN said it has improved local operations by moving all its customer service representatives to Pennsylvania.