July 20, 2008  

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Comcast gets mixed reviews

(by Daniel O'Keefe - March 06, 2008)

Rutherford took the next step in determining its new cable franchise when the "Municipal Ascertainment Report" dated Dec. 18 has been issued and made public record at borough hall. The report compiles the responses of about 200 Rutherford residents to a 24-question survey regarding Comcast, the borough's longtime cable provider. Comcast replied to the report in a letter dated Jan. 10.

While the report finds the number of actual complaints lodged by citizens with the cable provider to be very low given the size of the community, it notes that a "perception of generalized dissatisfaction with Comcast's service is evident in the Borough-wide cable survey results." There have only been 150 complaints over the course of a five-year period from 2002 to 2007. Of the 200 people who responded to the survey, 91 people said they were not happy with Comcast's service while only 68 said they were.

The report was prepared by Leslie London, special counsel for McManimon & Scotland, L.L.C., the same firm that employs former borough attorney Anne Marie Rizzuto.

"Comcast gave [Rutherford] very little," said London. "There are things that are fairly standard that other towns have that Rutherford doesn't." London said other towns have free connections for municipal offices, separate educational access channels and further equipment as additional perks in their contracts.

Among the things the borough plans to ask for in its new contract with Comcast is a separate channel specifically for the Board of Education, which currently only has access to Channel 12. It's the same public access channel shared by Rutherford and six other municipalities, between the hours of 5 and 10 p.m. on Tuesdays. Rutherford High School has an advanced TV studio and two full-year classes on television production.

London said the borough also hopes to make grants for further training and upgrades in video technology a condition of the contract renewal. Earlier this year at the two public hearings held in July and August to discuss Comcast's service, residents brought up the notion of discounted cable service for senior citizens living on a fixed income. Such a discount, along with grants from Comcast, a separate channel for the board of education, free service for municipal buildings and a plan for how Comcast will upgrade its facilities are all listed in the report as "future cable needs" of the town.

In its Jan. 10 letter, Comcast expressed willingness to provide equipment and training for public access programming to the borough, though it noted that both are of limited availability. The company also agreed to continue providing free cable service to municipal, library and school buildings. However, the letter states Comcast would not agree to provide a separate closed circuit system for Rutherford's schools.

As for senior citizens, Comcast said the company already provides a 10 percent discount to subscribers eligible for the state's Pharmaceutical Assistance to the Aged and Disabled (PAAD) program, but noted that such a discount cannot be a condition of the franchise renewal. The letter makes no mention of any further discounts.

The borough's contract with Comcast of the Meadowlands, L.L.C. expires on Dec. 23 this year. Comcast has 90 days to submit an application for renewal upon receiving a copy of the borough's report. The company has held a 15-year franchise in the borough since 1994. Comcast first became Rutherford's cable provider when the company applied and was approved in May 1978.

The borough has made just a little over half a million dollars in franchise fees during the 13 years between 1994 and 2006, according to Chief Financial Officer Ed Cortright. That means Comcast has made over $25 million in cable service in Rutherford during that same time. The borough expects to make another $58,679 this year, two percent of Comcast's $2.9 million.

Cortright also mentioned the two-percent franchise fee only includes basic cable service and isn't adjusted for the extra amount the company makes off premium cable channels such as HBO or Cinemax or additional services such as DVR boxes. Two percent is the maximum franchise fee stipulated by state statute and is common for most towns, according to London.


 

 

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