U Weekly. Serving The Ohio State University in Columbus Ohio

Time Warner on the hot seat as students look for housing

By Colin Day

Coming soon to your local TV station: the Cable Conflict.

As students move off campus or move into new places with familiar roommates, one of the major decisions made is which cable plan to purchase. Whether you are looking for the best sports coverage or the latest news in fashion or politics, every plan can be different and every channel contested.

For Time Warner Cable costumers, the company's new contract might be another factor to take into consideration.

Although all seems well for those with current contracts, the Wall Street Journal reported on Jan. 2 that Time Warner just settled a contract with News Corp., Rupert Murdoc's media empire, which gives them an undisclosed amount of money from each participant in a cable plan for every Fox Broadcasting Company channel offered.

The ramifications for this new contract might include raising fees for the customer, something Judy Barbao, vice president of communications for Time Warner Cable MidOhio, hopes does not occur anytime soon.

"There is a risk every time there is a retransmission battle like this one with Fox ... that the customers are going to bear some of this cost," Barbao said.

Sometimes, the decision regarding which cable provider to choose is made when the lease is signed. When student Ben Meisel moved off campus in 2007, he was limited to one service: Time Warner.

"[Our landlord] was telling us about utilities, and he said 'as for cable and internet, the building is only wired for Time Warner,'" Meisel said. "So we're like, 'I guess we're getting Time Warner.'"

In October 2007, the Federal Communications Commission passed a law to end apartment exclusivity deals with cable companies and landlords to help spur competitive prices.

"Years ago, Time Warner was about the only game in town and the building was utilized just by Time Warner, but everyone also got a deal on [service]. But then WOW! came into effect and AT&T ... so they took off the monopoly on the building. People could have a choice," said Peggy Wilamosky, a landlord with DLR Properties.

As of September 2009, Time Warner Cable, Inc. had the second largest number of cable subscribers, totaling 12,964,000 and coming in behind Comcast Corporation.

While they now compete with other companies, some current customers are becoming disenchanted with the public battle Time Warner had with Fox.

"The more general issue is the interplay between the people who are putting on these shows and then the companies that are actually involved in getting them to your house," graduate student Tim Weale said. "It's just a part of a larger struggle, and in the end, the consumers get screwed, no matter who wins."

Currently there are no current plans to increase rates, Barbao explained, stating that a recent increase in rates last November has given them no reason to immediately reflect their new deal with Fox on the consumer. Still, the idea of raising prices scares current customers.

"If it was 10 to 15 bucks more a month I would probably look into WOW!," Meisel said.

Others believe the Time Warner experience is worth the extra money in comparison to their competitors.

"A lot of people have issues with their prices," Jerome Socolof said. "But the flip side of that is they also have really good service, which is one of the reasons why I enjoy having Time Warner and will continue having Time Warner."

Originally Published: January 27, 2010

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