DirecTV said it will offer local channels to Bend consumers in the next five years, eliminating a key advantage of the local cable company, BendCable Communications, a spokesman for the satellite television company said.

”We’re not as competitive as we could be because we don’t offer local channels in the Bend area,” said Robert Mercer, director of public relations at El Segundo, Calif.-based DirecTV. ”When we get the capacity, we’ll certainly look at expanding into Bend. We hope to get there in the next five years.”

BendCable did not return calls seeking comment.

A unit of Hughes Electronics Corporation (NYSE: GMH), DirecTV already provides local channels through its digital satellite television service to 51 markets in the U.S. The company plans to launch another satellite in the fourth quarter of this year to increase its capability to offer more local channels to more markets, according to Mercer.

DirecTV began offering local channels to Seattle television watchers in February 2000 and Portland in August 2000. The offerings sparked an immediate spike in new activation in the two cities, an average of 13 percent to 15 percent, Mercer said.

”Cable companies start to lose customers,” Mercer said. ”They get a little more aggressive in their advertising campaigns. They try to win customers back by offering special deals.”

When BendCable increases its rates or changes programming, the demand for satellite services jumps, said Mark Cooley, owner of Cascade Satellite, which services Deschutes County, Madras and Warm Springs. Its revenue grew 10 percent in 2002 over 2001, Cooley said.

The number of subscribers to satellite TV companies rose to 21.1 million from 19.3 million, a 9 percent jump in the first half of 2002, according to a Federal Communications Commission annual report. Cable subscribers, the report said, showed almost no increase.

BendCable recently raised its monthly charge for analog and digital service by 3 percent to 5 percent starting this year due to a rise in operating and programming costs, according to a letter sent to subscribers in December. BendCable’s basic cable service fee is now $35.04 per month, one of the most expensive in the state.

Since 1996, when the U.S. Congress passed the Telecommunications Act to initiate deregulation of cable companies, cable rates nationwide have risen 45 percent, according to Consumers Union in Washington, D.C.

Dish Network, another satellite TV company serving the area, has slowly raised its rate $2 per package over the last seven years, said Nancy Baker, owner of Para-Tech Satellite Systems, which installs dishes in Deschutes County.

In 2002, Para-Tech increased its revenue 15 percent from the prior year, Baker said. Satellite TV packages start at $22.99 a month for 50 channels.

”It’s been a snowball effect,” Baker said. ”There’s a broader understanding of what satellite TV offers.”

Cascade Satellite and Para-Tech also install roof antennas for local channels. Indoor amplified rabbit ears and roof antennae offer access to local channels for some households in Central Oregon.

Rabbit ears can cost less than $10 at Wal-Mart.

”A roof antenna works even better, but there are installation costs,” Cooley said.

Monica Lee can be reached at mlee@bendbulletin.com