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July 6, 2007

Comcast offers only bid to buy local cable system

By Nancy Lowry

New Wilmington Borough Council last night opened a $2 million bid from Comcast for its cable and Internet system.

It was the only one received.

Council President Larry Wagner said the purchase proposal included several “conditions” that he did not specify. He said the bid would be reviewed and the financial considerations discussed. He said council will announce what it plans to do at the Aug. 6 meeting.

“When we agreed to solicit bids, we reserved the right to reject any or all of them,” Wagner said after the meeting.

At that time, Wagner also said borough officials have considered selling the cable system for several years, discussing a potential sale “years ago, before we upgraded our system,” with both Armstrong Cable and Adelphia, which was taken over by Comcast. Negotiations began with Comcast six or seven months ago, he said.

“The Internet is so complicated and we are so small,” Wagner said of the municipality, “The time will come when we won’t be able to afford to do the things we need to do. We’re considering now if it would be to our advantage to sell while there is interest.”

The borough provides about 70 television channels to 900 to 1,000 residents, and Internet service to about 200 residents. Residents pay $29.99 per month for basic cable service. Internet users pay an additional fee.

Borough resident Elizabeth Verterano last night questioned council on the future of cable television in New Wilmington.

Noting that Comcast was the only bidder, Verterano asked who else was contacted and where the municipality had advertised.

Councilman Michael Boyd, who has been involved in negotiations to sell the cable system, said Comcast had approached the council members. He said one advertisement was placed — in the Sharon Herald.

“We followed state law for advertising the sale of public properties,” he said.

Boyd added that before council votes on selling or keeping the cable service, public comment will be invited at a special meeting, so all views can be aired.

Even if council agrees next month to accept Comcast’s offer, Boyd said, he expects the process of turning over the operation would take about a year.

Saying she is satisfied with existing cable service, Verterano questioned the reliability of Comcast.

“The borough’s service has been reliable,” she said.

Boyd said the borough anticipates any new service provider “Will provide quality service.”

He added the borough does not have the resources to “provide the infrastructure to broaden services.”

“Is that why you are selling, because of changes in the industry and you can’t keep up?” Verterano asked.

Boyd explained that municipal services such as water, sewage and electricity are necessities.

“Fifty years ago, a television set was a luxury item,” he said. “Now we’re asking a fairly large fee for this service which I don’t even turn it on some days,” he said. “We are not experts. We offer a good service but five years from now will we be able to keep up? We’re a small municipality.”

If the sale proceeds, Verterano asked, what will borough officials do with proceeds?

Boyd said he envisions the funds sitting as a nest egg for emergency services, which could include replacing waterlines.

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