SureWest's (Nasdaq: SURW) TV subscribers may be resting a bit easier as the telco negotiated a new contract with local TV broadcast stations that have increased the price of their monthly license fees.
As reported in the Sacramento Business Journal, SureWest's TV customers received a letter that local broadcast stations have been increasing the monthly license fee the telco has to pay to carry and deliver their content.
In the letter, the telco said that while broadcasters have continually increased their rates in recent years, but what was alarming was that some wanted to double their charges.
"We are willing to accept a reasonable increase. However, with these current demands, we believe that these stations simply want to use us to take advantage of you," the letter said.
The service provider, however, did not indicate that it would increase the prices of its video services. At this point it is still evaluating whether it needs to change the current $2.27 a month broadcast fee.
For more:
- Sacramento Business Journal has this article
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