Tci Hikes Cable TV Rates, But No Increase Planned Here

Tele-Communications Inc., the nation’s largest cable company, is raising rates 7 percent for about two-thirds of its subscribers to offset the higher cost of popular networks like MTV and ESPN.

The increase, disclosed Thursday, will affect 9 million of TCI’s 14 million subscribers and raise basic service to about $27 a month.

But TCI officials said the rate hike likely will not affect Spokane’s 91,000 subscribers who already pay that much for basic service. TCI in January took over the Spokane franchise from Cox Communications Inc.

“I don’t expect an increase there,” said Hank Sexton at TCI’s office in Olympia.

TCI’s move comes as the company works to roll out its new ALL-TV digital cable service and reduce its $15 billion debt. It also comes three months after the company announced it would eliminate 2,500 jobs and freeze or cut senior executive salaries.

The price increase, to take place June 1, is 35 percent below the maximum allowed by the Federal Communications Commission, TCI said. TCI raised prices an average of 9 percent last year, but TCI spokeswoman Joann Dobbs said that increase accounted for three years.

TCI said 60 percent of the increase would be used to offset higher programming costs, the amount it must pay to air networks produced by conglomerates like Time Warner, the parent of CNN, and Viacom, which owns MTV and VH-1.

, DataTimes