Wednesday, March 26, 2003
Copyright © Las Vegas Review-Journal

Rates increase for expanded cable television

County opposes public access on content concerns

As the Legislature starts to consider cable television issues, Cox Communications customers are getting new, often higher bills.

Cox raised rates earlier this month by 7.3 percent for customers who get the expanded basic service, county and Las Vegas officials said.

Rates declined for customers getting only basic service, but Las Vegas officials figure fewer than 5 percent of local cable television company's customers rely on basic service without any enhancements.

At the same time, the Legislature is debating whether cable channels for public access would be used for pornography. Lawmakers also are expected to take up a bill that would impose a tax on satellite television services that compete with cable television services.

Sen. Joe Neal, D-North Las Vegas, introduced Senate Bill 278, which would allow local governments to provide cable television services. Also, the bill would provide for local access channels.

Clark County's lobbyist, Dan Musgrove, last week spoke against provisions in the bill regarding public access, which permits average citizens to air programs on a variety of issues through a specified cable channel.

Musgrove said Cox has set aside a channel for public access, but he said the county was concerned about the kinds of programs that might be aired.

He referred to a Supreme Court ruling that defines pornography as material that violates community standards.

"Obviously, because of the liberalness of Las Vegas, there probably wouldn't be much that we could prevent from going on the air," Musgrove said he told the Senate Commerce Committee last week.

Andrew Barbano, a long-time backer of Neal, disagreed. While Reno and other Northern Nevada communities allow citizens to use channels for programs that they create, Barbano complained that only elected officials have access to channels set aside by Cox in Las Vegas.

"In Las Vegas, the government access channels are incumbent re-election machines," Barbano said Tuesday. "It has nothing to do with filthy pictures. It has to do with filthy money."

In Northern Nevada, citizens have used public access channels for programs ranging from political issues to mental illness, he said.

Musgrove acknowledged that Cox Communications provided local governments with a channel for public access, but he said the county and four area governments were unable to find a viable manager for the program.

Barbano also criticized Southern Nevada for failing to have a citizens committee to advise government boards on cable television issues. Barbano is chairman of the committee that advises the Reno City Council, which is involved in negotiations on renewal of a franchise agreement with Charter Communications, a cable television provider serving Reno.

Roma Haynes, a county franchise official, said the county had an advisory board for cable television but abolished it in 1998, because federal law gives local governments little control over cable television rates.

In a separate matter, Steve Schorr, vice president of Cox Communications, said he expects a legislative measure to be introduced, possibly as a bill amendment, to impose a tax on satellite television services. It would produce $3 million to $5 million in annual government revenues, he said.

Cox Communications pays a 5 percent franchise fee, he said, and satellite services should pay a similar tax, he said.

Opponents of the tax argue that franchise fees are for use of local government right of way, rather than taxes.

"The old idea that it's a right of way fee has gone by the wayside," Schorr said.

Cox pays $11.4 million in 5 percent franchise taxes, he said.

Local city and government officials say Cox has adjusted rates every year since 1998. Schorr said the average annual increase for people receiving expanded basic service averages less than 6 percent. During that time, costs of programming have increased more than 18 percent yearly, he said.

"High (salary) figures that are being paid to sports figures are really boiling down to being being paid by the subscriber" of cable television service, he said.