Digital Cable Expansion Means Higher Costs

ByABC News
January 11, 2001, 10:07 AM

C H A R L E S T O N,   W.Va., June 19 -- Digital cable television has arrived.And so have the higher prices.

Charter Communications recently began digital cable service inWest Virginia, offering a clearer signal and up to 98 channels.

So far, the Charleston and Milton areas are the only places theservice is available for Charter customers. In upcoming months, thecompany will connect customers in St. Albans and Hurricaneareas, said Jerry Strasser, group director of operations.

Digital is the cable industrys response to the growingpopularity of personal satellite dishes.

New Channels on the Block

The service still has some glitches, and without special promotions it can be expensive. The customers cost varies depending on the packagechosen. Channels are organized into blocks of up to nine channels,with each block having a different price.

Want education television? A block of seven digital channels,such as Discovery Health and Discovery Science, costs $3.95 permonth, in addition to the customers regular cable bill, which isusually about $40 for Charters expanded basic cable.

Those looking for movies would pay an additional $10.95.

Subscribers also can get 45 music channels, which have no videopicture but play various types of music. Digital pay-per-viewprogramming also is available.

This summer, Charter subscribers can pay a special rate of$49.95 per month for up to 12 months for eight of the packages.After that, the price jumps to $80 a month.

Although Charter only recently began advertising for digital cable,it has seen a high demand for the digital terminals, which aresimilar to a normal cable hookup. Cable companies nationwide arefighting to get enough terminals for their customers, Strassersaid.

Were putting them out as fast as we get them, he said.People have been interested in digital before Charter even gothere, and thats why were having such a hard time with thedemand.