(Arnolds Park)– A disparity in cable television rates was a topic of discussion at Wednesday’s Arnolds Park City Council meeting.
Council members wanted to know why rates are twice as high in the lakes area than they are in Spencer.
John Varvel, a governmental relations official for Mediacom, admitted the lower rates in Spencer are a direct result of competition. Spencer Municipal Utilities last year started up its own cable system. Varvel said neither company can afford to operate on the rates currently being charged in Spencer. He predicts it will be a matter of time before one of the providers goes out of business. At that point, Varvel says the remaining company will probably increase rates similar to those being charged here.
Varvel added the rates Mediacom charges in the lakes area are similar to those in other parts of its territory that don’t have competition.
Arnolds Park officials havne’t officially gone on record as saying they’re looking into establishing their own cable service. But when asked by City Administrator Ron Walker if the city could buy out Mediacom’s shares for the Arnolds Park market, Varvel responded it could be an option. It isn’t known though how much that might cost.
