Subscribers to Comcast’s digital cable service in Colorado will receive a bill reduction of $2.40 this year because of an audit that discovered overcharges in equipment and services in more than 100 cities.
The Greater Metro Telecom Consortium, a group of 32 Denver-area cities and towns, was included in the 2004 and 2005 dispute filed with the Federal Communications Commission.
The nation’s largest cable provider will charge digital customers in those cities 10 to 20 cents less on their monthly bills throughout 2006.
“The maximum rate they could charge for a digital converter (per month) was $4.60, and we brought it down to $4.40,” said Dick Treich, chief executive of Castle Rock-based Front Range Consulting, one of two companies that did the audit.
“As a result of this, there will be ongoing savings,” he said. “This will tend to reduce cable rates.”
Comcast has 21 million customers in the United States, including 700,000 in Colorado. About 40 percent of the company’s customers nationwide subscribe to digital cable, according to New Hampshire-based Leichtman Research Group Inc.
Comcast officials did not offer comment on the reduced charge. The company said it would raise rates in Colorado by an average of 4.4 percent beginning March 1. Digital subscribers could see an average rate increase of 6.5 percent.
In addition to the estimated savings for digital customers from the audit, all Comcast subscribers in the 102 cities will receive a one-time credit of $1.25 to $2.50 on their February bills, said Ken Fellman, general counsel for the Greater Metro Telecom Consortium.
“We just want consumers to get some benefit from the work that we did,” Fellman said.
Comcast said the average rebate would be $2.04, and would be credited on customers’ February or March bill.
“Comcast reached the settlement to resolve the costly and time-consuming dispute, which involves less than 2 percent of the communities we serve nationwide,” said Comcast Colorado spokeswoman Cindy Parsons.
“It (the settlement) also resolves issues regarding the method ology used to calculate rates for equipment and related installation activities. This agreement will reduce the likelihood of similar disputes in the future.”
Customers in cities such as Denver, Glendale and Englewood will receive $2.50 in their February bills, while customers in Aurora and Lone Tree will receive $1.25, Fellman said.
Treich said his consulting group is looking at rates Comcast is charging this year, but did not say whether there would be an audit of 2006 rates.
Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.
