Knology Inc., which has absorbed Americast operations in Pinellas County, plans to boost the competition for viewers.
By LOUIS HAU
Published January 7, 2004
ST. PETERSBURG - Pinellas County TV viewers are about to witness something they haven't seen in a long time: a cable war.
Knology Inc., the West Point, Ga., cable company that took over Verizon Communications' Americast cable operations on Dec. 31, said Tuesday that it plans to start offering video-on-demand, high-definition TV and digital video recorders during the first half of this year. Mid-year, the company plans to start rolling out local and long-distance phone service.
Knology also intends during the next month to double the speed of the high-speed Internet service it inherited from Americast. And it has already added 12 new music-video and childrens' channels to its digital cable TV package.
For Pinellas cable customers accustomed to Verizon Americast's subdued competitive stance versus dominant cable carrier Bright House Networks, it's a whole new ball game, Knology president and chief executive Rodger Johnson told reporters Tuesday.
"They were basically babysitting," Johnson said of Verizon's stewardship of Americast during the last few years as it sought a buyer. "It's time for the consumer to have a competitive package."
Knology serves customers in much of St. Petersburg, Clearwater, Dunedin, Largo, Oldsmar, Safety Harbor, Seminole, Tarpon Springs and unincorporated Pinellas County.
Until now, Bright House had been the only local cable company to sell video on demand, high-definition TV and other similar premium services, which are also available from satellite providers such as DirecTV and Dish Network. Knology plans to begin offering video on demand, HBO on Demand and high-definition TV by the end of March and will start offering digital video recorders by the end of June. The company will roll out phone service in stages ending in March 2005. Bright House is also considering offering phone service but hasn't yet said when it will do so.
Knology's rates for cable TV and high speed Internet services will remain unchanged from Americast's latest rates. Knology plans to market its phone service using the same strategy it has in other markets: offering discounts on bundled packages to encourage customers to sign up for more than one service. About 71 percent of Knology's cable TV customers subscribe to its phone service, while 47 percent of them purchase its Internet service, Johnson said.
Knology will continue using Americast's former bill payment location at 3001 Gandy Blvd. N in Pinellas Park and will open a new payment location Friday at the Eastlake Woodlands Square shopping center on Tampa Road in Oldsmar. In the next month, the company also plans to launch a "Way2Pay" billing system that lets customers pay bills at selected convenience stores for a fee of $1.50 to $2.50.
Knology went public last month with a $54-million initial public offering.
Johnson said that Knology is keen on growing its customer base, currently at about 53,000. Without revealing specific growth targets, he noted that Knology typically serves about 30 percent of the homes that are wired to receive its services, compared to its Pinellas market penetration of about 20 percent. In addition to expanding its base in Pinellas, the company will also consider opportunities in adjacent markets, Johnson said.
- Louis Hau can be reached at hau@sptimes.com or 813 226-3404.
