Wednesday, January 5, 2011

Frontier plans big FiOS TV rate hike

Frontier Communications Corp. plans a big rate hike for some of its FiOS cable TV customers in Oregon and Washington.

Rates will rise 46 percent or more for standard cable plans, the result, Frontier says, of rate hikes by the cable networks. If you ever wanted an illustration of the impact content rights have on smaller firms, this is it. Verizon obviously is able to negotiate lower content rights rates, as it has more volume, and programming rates are tiered based on volume.

The higher rates won't immediately affect customers who have Frontier FiOS TV contracts. But for customers without a contract, and customers whose contracts are expiring, the rate hikes will be steep.

For example, the monthly cost of Frontier's standard, 220-channel package will rise from $65 to $95 a month -- a 46 percent increase. The higher rates kicked in Monday for new customers, and start February 18 for existing customers without a service contract.

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