Cox announces spate of price increases effective Nov. 1

Posted to: Business

Cox Communications is raising the price for its standard cable television package in Hampton Roads by 6.4 percent. It's the first price increase for the package since January 1, 2007.

Starting Nov. 1, rates will climb $2.95 to $48.95 per month for Standard Service, which includes about 70 analog channels in Cox's Limited and Expanded tiers. Rates for the standard package - which most of Cox's more than 415,000 local subscribers receive - have jumped about 23 percent since 2003.

The change will result from a price increase for the Expanded portion of the standard package. The price for Limited Service alone, which varies based on the city where the subscriber lives, will remain the same. Digital Cable is an additional charge.

The cost of Cox's Digital Gateway service will remain the same at $6.95, while the price of Digital Cable with more digital channels will fall by 45 cents to $7.50 per month. Digital Cable with one extra tier - a choice of movie, sports or family programming - will cost $10 per month, or 55 cents more, while Digital Deluxe service with three tiers of channels will go up $1.55 to $15 per month. Cox also is adding a two-tier option to digital service for $12.50 a month.

The cost for most movies "on demand" will leap $1.04 to $4.99 per movie.

In its mailing to customers this month, Cox blamed higher operating costs - "from the gas that fuels our vehicles to sharp increases in the price for electricity." In addition, programming costs have gone up almost 20 percent over the past two years, the letter said.

"We're not immune to some of the economic pressures that most Hampton Roads businesses are facing," said Leigh Woisard, Cox's spokeswoman, who is based at its local headquarters in Chesapeake. The company's local cable customers include those in Chesapeake, Norfolk, Portsmouth and Virginia Beach.

In January, Cox boosted prices for its premium channels, such as HBO and Showtime and for the monthly rental of a digital video recorder. Cox last increased standard rates on Jan. 1, 2007, when they rose 6 percent to $46.

Cox recently applied to the Federal Communications Commission to seek relief from some regulations on the grounds that "efficient competition" in TV service had developed in Hampton Roads - including the new Fios TV from Verizon Communications. FCC approval would give Cox freedom from the pricing controls now on its Limited Service tier. The company has the right to change other rates at will.

"Cox believes in competition and the ability of the competitive market to bring the best services to the market at the best prices possible," Woisard said last week in reference to Cox's FCC filing.

Prices for Cox telephone and high-speed Internet services also will increase Nov. 1. Basic phone service will cost $1 more - $15 for customers who bundle services, or $16.39 for those who receive no products other than phone. Consumers who bundle all of Cox's services will receive an $8 discount, up from $7.

Internet service will climb $2 for the Preferred tier; $1 for the Premier tier; $3 for the Value tier; and $5 for the Economy tier. The cost to buy a cable modem will drop $30 to $39.95.

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com

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25% increase in "economy" internet rate, and barely a footnote?

Couldn't care less about the cable TV rate hike, since pretty much everything I care to watch is still free over the air. But raising the price of "entry-level" 768-Kbps internet from $20 to $25 is a ridiculous and unjustified hike. When last they raised the internet rates just a year ago, DSL still hadn't made it to my corner of Norfolk. Hope it has by now. Otherwise, I'd use a tethered 3G cell phone for internet before I pay Cox that much.

FIOS mixup

Some people here seem confused about what FIOS really is because of Cox's commercials. Sure Cox has had FIOS wires running down the streets already, but Verizon's service has the wires running to your house. Big difference there.

cox has to make money

Yes they do if they want to stay in business, but they won't get $45 a month from me. I'll say it again, my 7 channels with rabbit ears works just fine for me, even with the converter box I will have to buy, my TV watching will only costs for the electricity when the TV is on.

A television is no longer a television, it has become a way of life, and an expensive one at that. It's a baby sitter, it's keeping kids from going outside and getting the exercise they so badly need, and it's a contributor to the increase in obesity in our children.

I wish families would spend quality time around the dinner table instead of infront of a TV. I guess I'm old-fashion!

They've got to make money

Cox, just like all business's have to make money, but what bothers me most is Cox just asked to be deregulated in this area. Then they pop the prices while that decision is pending.

The competition isn't stiff enough here.

Cox

...and this is why I have Direct TV!!! Cox is way too high. I get over 300 channels for $44.99/month!! I have never lost a signal in the year that I've had the service.

pisces757

You said you have had cox for 10 years. Do you know how much that equals in dollars and cents? Do you know how much you and others pay cox a year? I have all the TV I need with my rabbit ears, and don't go in debt because of it. Yep, we know you have to get a converter box, which I have already requested my coupon valued at $40, and I understand the converter box cost about $60. That's a heck of a savings from whast others pay in cable. Movies I get at the library, and watch when I want to and not because a tv station says I can. We all need to cut back on TV watching especially children. Bring the family together around the dinner table instead of infront of a TV.

Well, that's it for our family -

Due to our budget restraints for the winter and the increase of heating cost we have been debating about cable and it's cost. well thanks to this news we certainly won't be cox customers any longer. it's not just their fees and all, the added taxes etc. it's not worth it - it's just not affordable with kids in school and food rising, and gas is still exp[ensive even if it's price is dropping in time for us to pay more for heat. the luxury of cable is not justified. We'll just resort to the public library viseo selections for movies and good ole radio for news. we have to cut back.

FIOS is just technology that

FIOS is just technology that Cox has been using for 10 years! Oh, sure, Verizon is working really hard to break into the HR market, but you mark my words, they won't provide you with the service that Cox does.

I used to just have cable, but I ended up switching everything to Cox after being tired of dealing with Verizon's poor customer service and frequent outages....and let's not even get into the lack of communication between their departments that resulted in them taking 3 MONTHS to get my internet connectivity up and running!

Rabbit Ears?

I suppose you all haven't heard that in Feb. 2009, rabbit ears will no longer work. This means you will get nothing at all on your TV set unless you subscribe to some sort of cable/satelite service or buy a converter box. This is because of new FCC regulations (see http://www.dtv.gov/ for more info). I have been a Cox customer for over 10 years, and I wouldn't switch to any of those other companies unless they were giving it to me for free! Cox just increased their internet speeds and they are now FASTER than Verizon's, and about same in pricing. Trust me, I've done my research. My husband wanted us to switch because he thought we'd save money, but I convinced him to stay! The representative I spoke with from Cox also advised me that "FIOS" is nothing new and that Cox has had Fiber Optics for 15 or so years. Every company increases their prices! This is nothing new folks.

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