Recent Mediacom Hearing Highlights Busted TV Franchise System
On October 7, the Belle Plaine City, Minnesota Council held a public hearing regarding the city’s franchise renewal agreement with Mediacom, the community’s cable television provider. The council called for the public hearing to discuss the proposed renewal of Mediacom’s 10-year contract with the city, which expires in a little over 11 months.
Although not mandatory, a sub-committee of the city council recommended that a public hearing be held to allow input from residents regarding the job the franchise has done the past decade. Mediacom customers decided to vent their anger with Mediacom through letters that were read aloud at the hearing:
• "Frequently while watching digital channels, the picture and sound stop as if the channel is buffering. It doesn’t happen just once, but continues for many times.”
• "It seems as though Mediacom is taking advantage of its exclusive service in Belle Plaine to keep raising prices for their services.”
• "We have Mediacom and find it very annoying that there are no other service providers in the area that we can choose.”
• "Can we not put some competition in the area and keep these high prices down?”
• "I called (Mediacom) customer service to ask how much I would have to pay to break my contract with them. The agent I talked to said I could not cancel service until my contract is up on May 6, 2014. Two weeks later, I called again to ask what it would cost to break my contract with them. The agent said it would cost me $60 to break my contract.”
Mediacom took to heart these complaints and immediately made changes across the board. Just kidding. Nobody from Mediacom even bothered to show up
City Attorney Bob Vose said Mediacom had been notified of the hearing. "That’s pretty sad," said Trost, referring to Mediacom having sent no one to represent the company at the hearing.
Yes, it is sad but not surprising considering Mediacom has forgotten to attend other cities counsel meetings
(pdf) and in one instance sent a "wrong" franchise agreement to another city counsel giving Mediacom additional revenues not agreed upon
. The hearing exemplifies how not only the competition in many markets is broken, but the mechanisms in place to field consumer angst are just as dysfunctional.
No video competition? "Can we not put some competition in the area and keep these high prices down?"
"We have Mediacom and find it very annoying that there are no other service providers in the area that we can choose.
If only there was a way to put an antenna up in the sky so you could get video service from a competing company.
I do not, have not, and will not work for AT&T/Comcast/Verizon/Charter or similar sized company.
Re: My city has... Or they recognize overbuilders rarely prosper as their costs to build are the same and getting more than 50% market share is unlikely to pay the costs plus profit.
said by wkm001:How would that work? nobody Ignores possible profitable territories, even for their BFF.
They all have "good ol boy" agreements not to compete with one another.
one or the other builds and the smaller the market the LESS chance the 2 or more could survive
Re: My city has... Please show audited results of a usa cable company with an 80% profit margin... I doubt you can find one with a 20% on a 5 year or longer average...even 20% over one year seems unlikely.
The idea that you're going to get more people interested in serving an area at a lower rate is silly, that's why you only have a single half-assed provider in that town now.
If other ISP's believed they could make a reliable 20-80% anywhere there would be a stampede like the north Dakota oil boom to set up service overnight...It would be too good to be true, and it is.
Santa Monica, CA
·Time Warner Cable
Re: My city has... Dane can chime in anytime, but basically, my read on it is that the service is being widely, deliberately, and intentionally misreported as $40 gigabit service (even got by me the first time!). It isn't.
It is a reverse-bundle, and that is how it could very well be profitable, down the road. Forced bundling, of course, is only evil when Verizon does it.
They're selling Hosted PBX service at $40 per-seat, not per-firm, and the network access is "like" free. No word on ToS and servers, but I'd bet there are restrictions, given Google and Sonic's previous actions.
Furthermore, it is unclear whether or not the service is available at all ("expected in November"), and appears to be limited to one business park address - an MDU of sorts.
Re: My city has...
said by john :Could you tell us the name of this company and it's stock symbol if publicly held viewing the financials is pretty easy.
worked for a cable company that made a 67% profit after paying employees,.....
Of course if the 67% is just what they told you, or what you guessed or just made up don't bother replying, because we get posters claiming all sorts of things that just aren't so.
And 67% profit as an ongoing business would be truly amazing.
| |said by Skippy25: That certainly would be a good idea.
Unless they get to share the cables, there is absolutely no incentive to come in to compete with anyone.
but consider rather than 2 companies sharing the cost of building out to get half the customer each, they decide to merge, build out and get all of the customers who want/can afford service. and as they merge town after town they change their name to...say... ComCast...
You see where this is going?