In January, most customers of Bend-Broadband, formerly BendCable, will see a nearly 4 percent increase in their rate for analog basic cable, while buyers of bigger cable packages will see increases up to 7 percent.

The monthly cost of analog basic cable, which most subscribers have, will rise to $34.50 from $33.25. Digital basic cable will increase 5 percent to $6.75 from $6.45. Among several add-on programming packages, the ”silver” package will see the biggest price boost of 7 percent, to $14.15 from $13.20.

The company said it increased the price because it added more programming, and the existing program costs increased an average of 12 percent for 2004.

”These and other costs continue to escalate, making it necessary for us to adjust our pricing to partially cover these increased costs,” Ray Spreier, co-president and general manager for the company, said in a recent letter to customers.

Mark Cooper, director of research for Consumer Federation of America, a non-profit association of 300 consumer groups, said, ”Bend may have the highest basic tier price in the country.”

The national average for basic service is about $15 a month for 16 channels – broadcast networks, CSPAN and a couple of other channels, Cooper said.

Typically, the next tier has another 45 channels and costs about $20, the package most people purchase, he added.

”What they’ve done in Bend is they have not given you that choice,” he said.

Kate McPhillips, marketing manager for BendBroadband, said the company offers 58 channels in basic analog cable because some networks require, as part of their contract, to be included in basic service. If the company did not put it in the basic package, the programs would cost ”significantly more … nearly double” in the next tier of programming, she said.

”We’ve had more requests for Comedy Central and Animal Planet than for (a smaller, less expensive basic cable),” she said. ”There’s not a demand there. How do you justify inflating the price if there is not the demand for it?”

Programming contracts are annual, so pricing is likely to remain stable for 2004, McPhillips said.

Cooper said he has received complaints about the cost of basic cable in Bend.

”The only thing you can do is write your senators and representatives,” he said. ”They deregulated cable without competition (in 1996), and the consumer is paying the price.”

The BendBroadband letter to customers also noted that this year it completed a $12 million project upgrading its equipment. McPhillips said that did not affect prices.

The company funded the program mostly from reinvesting profits, she said.

The US General Accounting Office, in an October report on the cable television industry, cited such upgrades as an apparent factor in higher rates.

”Although these upgrades benefit cable subscribers by expanding the number of cable networks available and improving picture quality, much of the benefit of infrastructure improvements accrue to subscribers who purchase new, advanced services such as broadband Internet access,” the report stated.

Cathy Carroll can be reached at 541-383-0304 or ccarroll@bendbulletin.com.