Town entertains second cable TV provider
Published on December 17th, 1997
STONEHAM, MA - Stoneham's Board of Selectmen have followed in the footsteps of some other area communities by approving the start of a licensing process that may yield a competitive cable TV environment in town.
At Tuesday night's Board meeting, representatives from Residential Communications Network (RCN) sought approval from the Board to begin the process of filing for license approval in Stoneham to be the town's alternative cable TV provider.
RCN Municipal Relations Vice President Thomas Steele explained to the Board his company's mission of "offering cities and towns the opportunity for a cable alternative."
Steele also advised that the city of Somerville has just signed up with the company for cable TV service and other communities, such as Wakefield, Arlington and Newton, are in the process of granting a license to allow cable competition in their towns.
George Duffy, vice president of RCN's Regulatory Department, stated that by granting a license for a second cable TV provider, consumers will be given more choice in programming, rates, and services.
The process for RCN to obtain a license in Stoneham will involve extensive hearings, negotiation and notices before one would be granted.
In addition, Town Counsel William Solomon stated that extensive review by the town will be needed to "make sure it's a quality system." Solomon also said that the town's Public Works Department will need to assure that the wiring would be placed on public ways in a "safe and appropriate manner."
In response to Selectman Cosmo Ciccarello's inquiry of how the company could help the town, Duffy explained that the major consideration would be to provide choice to the consumer. RCN also anticipates enhancing public access, government and educational programming.
Steele added that RCN would provide indemnification of any subsequent lawsuits brought by the town's current cable TV supplier, Media One, stating that RCN does not anticipate the existing provider to "just sit back" and not oppose the competition.
RCN asserts, however, is that it looks to complement and not duplicate the existing cable service in a given community.
RCN currently offers a monthly rate of $24.95 for an unbundled basic cable package which features 78 channels, including the Disney Channel.
In addition to cable TV, RCN offers various other services including local and long distance phone service and internet service. By "bundling" these services, Steele called RCA's ability to serve as "one-stop shopping" for a consumer a major advantage over current cable providers.
Bigger savings could be realized, according to RCN, with these bundled packages, such as a cable TV and long distance phone service package for approximately $19.95 per month.
The only license currently being sought for the town of Stoneham, however, is a cable TV license.
Solomon stated that although the town has been aware of the existence of cable TV alternatives, "we didn't want to be the first community to do it," preferring to take the more cautious approach of observing the experiences of other communities first.
The Board's unanimous approval to begin the licensing process is likely to be heralded by residents who, like the town's Selectmen, will welcome the opportunity for competition.
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