If you’ve been puzzled by calls from Comcast Xfinity asking you to sign up for a triple play that includes “cable,” internet, and phone service, you’re not alone. According to the Wisconsin Department of Financial Institutions (DFI), which is the agency responsible for licensing video service providers, Comcast has not expanded its cable television service territory in the state. Instead, what customers are being sold is a streaming service that rides on broadband.
“It’s important for potential customers to know what they are signing up for,” said Wisconsin Community Media Executive Director Mary Cardona, “because municipalities cannot collect any fees from the revenue generated from this cable-like service because it is offered on broadband. If you switch from Charter Spectrum or TDS for example, it will reduce the income municipalities receive from video service provider (VSP) fees.” This income is relied upon by many municipalities to fund local media centers that cover local government, schools, and community activities.
VSP fees are going down steadily as a source of income for municipalities as cable subscribership numbers wane. About 40% of households in areas of Wisconsin served by cable television companies currently subscribe, according to numbers obtained from DFI.
