ImOn boosting cable rates due to programming costs

ImOn Communications said it is raising cable TV rates this month due to higher programming costs, but  keeping phone costs the same in 2013.

In a letter to subscribers, the Cedar Rapids-based cable, phone and Internet service company said it is raising cable rates in response to a 16 percent increase in overall programming costs, effective Dec. 16.

The monthly cost of the popular Digital Cable package will increase $7, or 8.8 percent, to $85.98 before taxes and regulatory charges.

Local Cable, ImOn's basic package, will increase $4, or 16.6 percent, to $27.98 per month. Local Plus Cable will increase $9 per month, or 14 percent, to $72.98.

The changes will not affect customers who are on a promotional packages until those packages expire, according to Jeff Janssen, director of sales and marketing for ImOn. He said the increases are a direct pass-through of programming cost increases.

In a letter to customers, ImOn particularly cited higher costs it expects to incur to carry the local network affiliates of CBS (KGAN), Fox 28 (KFXA-TV) and NBC (KWWL-TV).

In ongoing negotiations with the operator of KGAN and KFXA, the letter said Sinclair Broadcast Group is asking three times the current rate to carry the CBS and Fox affiliates.

Sinclair Broadcast Group did not immediately return calls seeking comment.

ImOn's retransmission consent agreement with Sinclair Broadcast Group expires Dec. 31. Janssen described negotiations with Sinclair as "good faith on both sides."

ImOn is also changing its channel lineup in an effort to keep programming costs as low as possible, Janssen said. Beginning Jan. 1, it will replace Univision with Telemundo. Telemundo, which ImOn described as "more reasonably priced," will be available as an a la carte option.

The company said it also will offer the Encore channels only as an a la carte option or packaged with Starz as the result of a contract change. At least eight new high definition channels will be added in 2013 at no additional cost.

ImOn expects to maintain its current phone rates for 2013 due in part to a new phone switch system it has installed that will help it control costs.

Janssen said ImOn has doubled its available bandwidth to Internet service customers this year due to growing demand for bandwidth-intensive applications such as video and gaming. Rates for some Internet service plans will increase $4 per month, while rates for one high-bandwidth plan will decline $35.

The Gazette Co., which owns The Gazette, is a minority shareholder in ImOn.