SOME THOUGHTS ON ATLANTIC BROADBAND CONTRACT

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Based on the questions asked during today's (Friday, Aug. 3) first AB InfoSession, here are some takeaways from the Atlantic Broadband – UCO “Installation and Distribution Agreement”, a twenty-two page booklet available, front desk, UCO office.

The Initial term shall be ten (10) years from the Start Date .
The Start date: The first invoice sent by AB to UCO after the “launch of services to the premises”.
(I guess that date would be fall in June, 2019)

AB will reimburse UCO up to one hundred thousand ($100,000) to hire a mutually satisfactory “project manger to monitor Company's construction and installation process.”

Force Majeure. Neither AB nor UCO is liable for “acts of God, fire, weather, government, terrorism, war, riot”  etc. Basically, events beyond Ab 's or UCO's control, Think Hurricane Irma.

Now for individual rates. For Cable TV (mandatory part of our COA fees)
Installation Charge (one time): $0.00   Equipment Charge (one time): $0.00
Bulk Rate Price: $29.00/per unit/per month*. Includes
(a) Bulk Services: Limited, Value, and Value Plus TV channels (includes HD programming {but your TV has to be HD capable}); EPIX  Premium Channels; Starz and Starz Encore Premium Channels; HBO Premium Channels.
(b) Equipment per unit: up to one (1) HD DVR; up to two (2) HD DTA boxes
(c) Wire maintenance Program (No charge for service calls)

*: $29.00 good for one year. Each year thereafter, rate “will be increased one dollar and twenty-five cents ($1.25). So, by year 5, $34/month; by year 10 (last year of agreement): $40.25/month.

AB will make “reasonable” attempt to respond to service requests within 24 hours, 7 days a week.

Credit for service outages. Basically, more than 24 hours; the owner has to specifically apply within 90 days (just a service call is not enough).

Optional Services. Prices are for first year; thereafter, increase by 3%; rounded up to nearest half or whole dollar.
Unlimited Phone Service: $24.99 (US; Canada; Puerto Rico)
“Starter Plus Internet”  (up to 25Mbps): $17.99. By year ten, $26/month
“Express Plus Internet”  (up to 100 Mbps) TIVO/DVR Upgrade; “voice” remote if offered: $21.99
(Increase will be $1/yr. So by year 10, $31/month.
“Unleashed Plus Internet” (up to 250Mbps) TIVO/DVR Upgrade; “voice” remote if offered: $44.99:     
(Increase will be $1.50, years 2 – 5, $2/yr., years 5 – 10. So by year 10, $61/month.

Now for a fascinating comparison of our CV rates vs. standard individual rates.

According to the Agreement, CV has 7854 units. So, given that $34/month is the average, without options, over the decade, CV cable TV fees will be $267,036/month; $3,204,432 annually; and $32,044,320 for the decade.

Sounds like a lot, doesn't it? Wrong:  You'd be paying three to four times as much if UCO had not negotiated with AB for the Standard Bulk Rate. See below

Typical costs: From https://electronics.costhelper.com/cable-tv.html

For Comcast, Standard/Starter packages are $50-$60 a month. The mid-level Preferred package is around $70-$80 a month. While the top tier Premier package is $100-$127. These prices do not include any premium channels (HBO, Cinemax, etc), HDTV, or DVR add-ons.
A DVR is a digital video recorder that records video onto a hard drive storage medium. It often includes features such as being able to pause live TV, dual tuners for recording two channels at once, and time shifting functions to allow instant replay, rewinding, and fast-forwarding of video programming.

Time Warner Cable . For the most part, they offer a first tier digital package costing around $50-$60 a month. And their top tier digital cable package is around $100-$120, depending on the region.

Cox Cable TV offers limited cable service for around $12-$17 a month. Their packages also break down similarly around three tiers. Their first tier costing around $50-$55, the next tier ranging from $58-$64, and their top tier costing $68-$75.

Additional costs:
In general, HDTV service costs about $6-$8 per month for the HD cable box.
An HD DVR receiver costs around $10-$16 per month, which includes access to HDTV channel viewing.
Additional rooms and outlets range from $7-$10 per room and outlet for digital service.
Premium cable channels cost around $10-$15 for each one per month. Each additional premium channels costs more, with small discounts when ordering multiple premium channels.
Service installation and home visits range from $20-$40 depending on the services being installed.

Richard Handelsman