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Wednesday, January 15, 2003

By Timothy McNulty, Post-Gazette Staff Writer

Cable TV subscribers to AT&T Broadband are about to pay at least 7 percent more for standard service and 10 percent more for digital service, among other cable offerings.

The changes will be effective with next month's bills.

The company serves some 350,000 customers in the Pittsburgh area, including those in the city and more than 100 municipalities.

According to information it released late last month, AT&T Broadband's monthly rates for standard cable are rising from $36.43 to $38.98 in the city and from $37.99 to $40.65 in most other municipalities in Allegheny County.

Monthly prices for HBO/Showtime are rising from $14.95 to $15.95; for Cinemax/The Movie Channel, $13.45 to $14.95; for the standard digital package, $55.99 to $61.99; and for the platinum digital package, $82.99 to $89.99.

Installation and equipment prices will also increase.

The company's director of government and community affairs, Brian Jeter, said prices are going up because of programming and operating costs.

Pittsburgh City Council members, led by Bob O'Connor, complained about the rate increases yesterday and approved a nonbinding resolution opposing them, though the city has no power to stop the price hikes.

The franchise agreement allowing AT&T Broadband to use city-owned rights of way to string cable lines gives the city a say only on basic cable rates, which the company has said are not increasing. While the city's $12.57 basic monthly rate is not going up, rates for "standard cable," which combines "basic" and "expanded basic," are increasing.

In most municipalities countywide the basic rate is sticking at $12.32 a month.

Yesterday, O'Connor said it was "outrageous" to raise rates in down economic times, and Councilman Jim Motznik said city cable users are being "held hostage" by the cable company, since they cannot subscribe to other cable services.

Councilman William Peduto said he empathized but the city can't alter business decisions.

Council approved the nonbinding resolution 6-1, with Peduto voting "no" and Sala Udin absent.

Tim McNulty can be reached at tmcnulty@post-gazette.com or 412-263-1542.