HomeMy WebLinkAbout12 AT&T SERVICE RATES 10-16-00 NO. 12
AGENDA RE 'ORT .....
DATE October 16, 2000
TO:
FROM:
suBJECT:
WILLIAM A. HUSTON, CITY MANAGER
PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
AT&T BROADBAND SERVICE RATES
SUMMARY
A presentation by AT & T Broadband explaining the new cable services rate structure.
RECOMMENDATION
Receive and File
FISCAL IMPACT
None.
BACKGROUND
AT & T. Broadband is currently in the process of switching on its newly rebuilt broadband cable
service in Tustin. In conjunction with this switchover, AT&T is revising programming package
options and is requiring the use of set top converter boxes for all subscribers to basic 2 package
and above. Basic package 1 is generally "off the air" channels that are locally available. Basic
packages 2 and above include many of the cable channels popular with viewers, inclUding CNN,
ESPN, History, A & E and Discovery.
In the past, customers have been able to receive all channels, except premium movie Channels,
with a "cable ready" television. Many subscribers are objecting to the new charges for the rental
of tl~e converter boxes ($3.60 monthly fee and $4.09 with a remote) and the requirement for each
television in a household to be equipped with a converter box in order to receive all subscribed
services.
Staff estimates that the typical customer who'currently has two televisions and receives basic 2
level of service will incur a minimum rate increase in the amount of $9 per month or $108
annually. Attached is a summary of the current rates for AT&T Broadband cable services in
Tustin.
AT&T believes that the rate increase is justified in light of the additional channel offerings and the
customer service benefits of utilizing addressable set top converters. Attached is an informational
item from AT & T explaining some of the benefits of uSing this technology, a revised rate schedule
and a programming schedule.
Federal law prohibits the City from regulating cable programming, cable rates or the technology
utilized to deliver cable services.
Tim D. Serlet
Director of Public Works/City Engineer
Public Works Department
Attachments:
AT&T Broadband Informational Flyer
Summary of Rates
Programming Selections
0CT--09--00 02;59 PM 5494885 P.02
Why and Advanced Set-top
From AT&T
Makes Customer Sense
200 Paularino Avenue
Costa Mesa, CA 92626
Basic 1 Service "is" available to our customers "without" the need gar a Cable Set-
top box. This service is generally 20 to 30 channels of local off-air TV stations a
variety of Public. Educational and Government access channels and miscellaneous
cable channels like C-'SPAN etc. Generally, the monthly subscription ranges
approximately from SK00 to $9.00.
New Channel additions are customer convenient with the set-top box...there will be
no need to wait at home for channels to be added to your servtce...it's a keyboard
stroke away..Hterally a few minutes of your time.
A set-top box is the only way, from a technology perspective, to use the New
Interactive Programming Guide.
A set-top box is the only way to order Pay Per View movies, Wrestling, Boxing or
Concerts. A simple toll-free call and minutes later you can watch the event. No need
to travel to the lobby and pick-up a box to watch the ebampionship fight, plus no
return trip.
For those customers whose busy lives make them miss payments the new set-top box
allows for their service to be interrupted/temporarily disconnected and immediately
reconnected without having to pay a substantiafly higher reconnect fee and wait a
few days at home for our next available truck rob connection.
Parental Control of all and any channels is available through the set-top box...the
ultimate control for bnsy families. Premium and PPV channels are only available
from the adult that controls the PIN #.
Adding or deleting Premium or Basic tier channels is a phone call away and can be
changed within minutes versus having to stay home and waiting a few days for the
next available truck-rolL
AH Cable, Satellite or Broadband providers "require" the use of s°me type of
"converter, set-top box, receiver" to view all the channels they offer customers.
Most charge many times more for their set-top box than AT&T. In-fact, most make
you pnrchase the set-top.
Recycled Paper
Summary of AT&T Broadband Rates
Ocober 2000
Basic Sevice Tiers Monthly Rate*
Basic 1 8.79
Basic 2 27.27
Basic 3 3.03~
Converter Box 3.60
Converter Box w/Remote 4.09
* Rates are additive, each level or service incurs a
new charge.
Typical Basic 2 Customer wi 2 televisions and No '
premium Channels
IBasic I 8.79
Basic 2 27.27'
2 Converters w/Remotes 8.18
Sub Total 44.24
5% Franchise Fee 2.21
TOTAL 46.45
Z
Q_
LU