Published: May 20, 2006 11:36 pm      

Atlantic Broadband raising rates

Many cable users in the Johnstown region will notice a change in their service next month – an increase in what it costs.

Local cable carrier Atlantic Broadband will increase the cost of six of its services beginning with the June billing period.

Dave Dane, company vice president, said some of the increases are due to discounts being rolled back while the others are the net result of several factors.

“We anticipate the average customer is going to pay us $3.50 more per month than they do today,” Dane said.

“On an average bill of $68, that’s about a 5 percent increase.”

Dane cited three issues as being most responsible for the increases: Higher operating expenses, capital investments and the cost of programming.

Dane said the company has been hit with higher prices on services and products it needs on a daily basis, including pole rental fees, gasoline and insurance costs.

He also said that one of the company’s major operating expenses actually filters money back into the local community.

“A large part of our operating costs are associated with our labor force, which is 350 strong in Pennsylvania, working mainly between Johnstown and Altoona,” Dane said.

“The costs of their wages and benefits have gone up significantly over the past year.”

A variety of service upgrades Atlantic Broadband has made during the past year also contributed to higher rates.

The introduction of new technologies and improved Internet services were imperative for the company to continue to offer its customers the best service possible, Dane said.

Finally, he said, the cost of programming rose significantly at the beginning of the year.

Networks and cable channels increased the prices they charge cable companies to offer their programming.

“We knew that was coming because it was in our contract,” Dane said.

“But we sort of held off doing anything about it during the first three or four months of the year, until it really became evident that we really needed to adjust our rates.”

Dane said one new service the company began offering in March – voice-over Internet protocol telephone service – is giving its customers a chance to lower their overall utility bills.

Atlantic Broadband’s phone service offers a variety of telephone extras, including unlimited long distance,for $29.95 plus taxes and fees per month.

“Even after this price adjustment, there’s a good chance that Johnstown residents can lower their overall utility bill by using our phone service,” Dane said.



Going up

Subscribers to Atlantic Broadband cable services will see a price increase in June.

The following are Atlantic Broadband’s rates, along with those of Adelphia for comparison purposes:



Service Old price New price Adelphia



Basic $15.95 $16.95 $16.48



Value 51.59 53.99 47.99



Digital only 16.95 17.95 11.95



Additional

digital receivers 4.95 6.95 7.50



Premium

channel 12.95 13.95 22.95



Starter Internet

with video 21.95 22.95 24.95



Shawn Piatek can be reached at 532-5060 or spiatek@tribdem.com.