BendBroadband ups services, rates
Published 4:00 am Wednesday, January 4, 2012
BendBroadband will be rolling out additional video services, faster Internet speeds and increased bandwidth limits.
But the Bend cable TV, Internet and telephone company also will be increasing its rates, beginning Feb. 1, two executives said Tuesday.
“Nobody likes talking about price increases,” said John Farwell, BendBroadband vice president of business operations. “People in Central Oregon are used to having the latest technology, and we want to be able to bring that to our area.”
BendBroadband has launched TV Everywhere, allowing customers to watch HBO and Turner Broadcasting Service shows — such as “Seinfeld” or “Boardwalk Empire” — on their computers, tablets and smartphones.
“We’re the first small cable operator in the United States to be launching this,” Farwell said.
Other networks will be added in the future. BendBroadband will not charge an additional access fee for TV Everywhere. However, HBO programming will only be available to those who subscribe to the premium channel.
The service reflects the ongoing convergence of television and the Internet, and the different ways viewers watch TV today.
In the past, families once gathered around a television in the living room and watched the same show. Today, however, parents may be watching in one room while their children view videos on laptops or tablets from their bedrooms.
“(BendBroadband) is giving everybody the flexibility to enjoy it in multiple venues,” said Mark Hobbs, director of marketing.
Along with the online programming, BendBroadband will be increasing customers’ monthly high-speed Internet usage limits.
The limits, or caps, on its four main packages will go up by 25 gigabytes, increasing to 125 GB a month for the bronze, silver and gold packages and to 175 gigabytes for the platinum.
BendBroadband subscribers with an additional service, such as cable TV or telephone, will get an additional 25 GB. Those who want even more bandwidth may buy 25 GB for $10 a month, up to an additional 50 GB total.
Beginning Feb. 1, BendBroadband also will be increasing Internet download and upload speeds. It will also be adding technology to provide a speed boost, a quick initial burst expected to shorten the time it takes videos to load.
In addition, the company will be doubling the number of additional email addresses available per account, and increasing email storage from 100 megabytes to 1 GB.
Other new features will enhance the information available in programming guides and allow those with a digital video recorder to program or access it from a remote location.
How much will it cost?
That depends on the service.
The essentials and preferred cable TV packages will increase by $1.50 and $2 a month, respectively. Those who get either of those two plans, plus additional tiers, will see increases between $1.75 and $4 per month, depending on the tiers.
Set top box fees will go up 25 cents, and DVR service fees will increase about $1.
For high-speed Internet, the bronze, silver and gold high-speed Internet packages will go up $1.50 per month.
Like most businesses and individuals, BendBroadband faces increasing costs. The programming it buys from networks — its largest single expense — went up 7 percent in a year, totaling $15 million, Farwell said.
Satellite companies that deliver the content also increased rates, and in recent years, more local broadcast stations have started charging cable companies to carry their programming.
Recently concluded negotiations resulted in KTVZ, the Bend NBC affiliate, charging BendBroadband, and during talks in late 2008 and early 2009, local Fox affiliate KFXO shut off access to its signal. When negotiations finished, BendBroadband said it had to pay the station.
The company will start breaking out the costs it pays broadcast stations as a line item, called local broadcast station surcharge, on its monthly bills, according to an announcement to subscribers that started to hit the mail Tuesday.
Broadcast TV stations send their signals over airwaves granted to them free by the federal government, BendBroadband states in the announcement. Then the government lets them charge cable companies to carry their signal.
“… And if we don’t agree to pay, broadcasters can force us to drop their channels,” the announcement states.
BendBroadband also invests about $1 million to $2 million annually to build the infrastructure required to bring high-speed Internet and digital television to Central Oregon, Farwell said.
It must ensure it has the capacity each evening to meet peak demand, 60 percent of which represents streaming video from sites like Netflix or YouTube. But those companies do not pay for the fiber-optic cable required to deliver that content.
Highlights of BendBroadband’s new services, rates
• Ways to watch: BendBroadband will be offering customers access to TV shows from HBO, Turner Broadcasting Service and other networks on their computers, tablets and smartphones.
• Internet caps: High-speed Internet limits will increase. Internet speeds will get faster, and email storage capacity will expand.
• Internet prices: The bronze, silver and gold high-speed Internet packages will increase by $1.50 per month.
• TV prices: Essentials and preferred cable TV packages will increase by $1.50 and $2 a month, respectively, along with the rates for variety, sports and movie channel tiers.
Source: BendBroadband