Tuesday, July 8, 2008
Cox Communications announced three days ago that as of yesterday cable rates for the average Gainesville subscriber will increase once again, as they have almost each year since Cox received the franchise. For people who get only channels 2 through 22, the monthly increase will be a whopping 27 percent. For those who receive channels 2 through 70, the increase will be 8.7 percent. Those who get additional digital tiers will be charged 25 percent a month more for each tier.
Obviously, these increases bear no relationship to the 3 percent inflation our country has experienced since the last time Cox raised rates, 18 months ago. Nor does Cox suggest that it is giving any extra service for this increase. In fact, a few years ago, Cox took away one of our PBS channels and still charged us extra money.
Of course, Cox is a quasi-monopoly. It has no other cable (as opposed to satellite) competition in this city. It can charge whatever it wants to, and usually does.
To understand why we are in this plight in Gainesville, you have to go to an Arthur Conan Doyle story, “The Adventure of the Silver Blaze.” Some of you will remember that Sherlock Holmes was able to solve that mystery because a dog did not bark. The dog in this case is our elected officials. Have you ever heard one of them bark at Cox cable, this time, or any time? In point of fact, a few years ago when AT&T tried to get a law passed by the Legislature opening all cities in Florida to new cable competition without the cable companies having to go before city commissions for a franchise, our city commission sent a representative up to Tallahassee to oppose passage of the bill.
Since 2002, Cox has raised the rates in Gainesville 35 percent. I repeat, 35 percent. In the same six-year period of time, inflation in the United States increased 16 percent. If you are a quasi-monopoly, you can get by with treating customers that way. Granted, the FCC and Congress have taken away almost all the powers of local officials to regulate the prices cable companies charge. But wouldn’t you think elected officials would at least bark and use some moral suasion? Instead our local City Commission let the citizens’ cable committee die a quiet death a few years ago. There is no one to speak for the citizens of Gainesville on this issue, not even one local official.
Possibly, the dog does not bark because the City of Gainesville gets a piece of the action every time our cable costs go up. If you look at the bottom of your next Cox bill, you will see that not only is Cox getting 8.7 to 27 percent more, but the local communications service tax cost is going up 8.7 to 27 percent more, also. Whee, more money for the cable company and more money for the City from the good old cash cow, the poor slob who watches cable in the City of Gainesville.
What should the City Commission be doing? At the very least, it should re-institute a local cable committee and give it room on the city web site to explain the competitive costs of getting television from all vendors in Gainesville. Maybe the cable committee would also bark.
This is Radio Ralph, with a comment at midweek for AM850.