Plan to save San Bruno cable unveiled

Should officials embrace the proposal to overhaul the system’s infrastructure, service and financing plan, City Manager Jovan Grogan said customers could soon enjoy an improved product at a reduced price.

“We are recommending to the City Council that we continue with providing services to the San Bruno community and we do it in a way that will position the enterprise for future success with the fiber-to-the-home product,” he said.

For his part, Cable Director Sandeep Krishnamurthy also said he believes the system is worth preserving.

“We already have a viable enterprise and we should grow it,” he said.

Up for consideration at the meeting will be a new business plan drafted under the direction last year from councilmembers who requested more detailed information regarding opportunities to reinvigorate the antiquated system.

Central to the update will be a $12 million infrastructure investment needed to upgrade to a fiber cable network which can increase internet connectivity speeds far beyond the capacity of the cable.

Grogan noted the financing strategy will not be addressed during the upcoming meeting, and instead feedback will only be sought for the system’s business plan.

With the enhanced ability will come a shifted focus from the current bundle of television, internet and phone service to an emphasis on web-based platforms better accommodating the rise in online streaming interests.

‘The [Internet Service Provider] strategy places internet access at the top of the enterprise’s service offerings, with video and phone services available as add-on services,” said a staff report.

With the realignment comes a new business model, which could cut costs to customers as a top tier of internet access with a television subscription would be offered for $80 per month. A limited internet packaged with a similar television service would be offered for $65 per month. And the lowest tier internet service with no contract would be offered for $40 per month.

New customers or those who sign up for the new service will also be offered a reduced landline phone service bill, down to about $7.50 per month from $30 per month. Basic digital television rates will drop from about $95 per month to $75 per month, according to the staff report.

The rate cuts are possible through restructured agreements with new vendors, which will be able to offer competitive services to the city for less money. With a variety of reductions to service contracts, the entire system will experience increased efficiency and those savings will be passed on to customers, said the report.

Krishnamurthy said the new rates are currently available to all system subscribers, but customers may also preserve their existing billing structure if the new offerings are not attractive.

The current system operates at a deficit and is a drain on city resources, which invited the discussion from officials regarding ways to improve the municipal cable network which is one of the few still maintained in the nation.

Officials had previously examined abandoning the system, but a discussion late last year indicated councilmembers favored identifying ways to preserve the service and improve its financial structure.

Krishnamurthy said he believes the improved system would not only offer better service to current subscribers, but also lay the groundwork for future innovation as well.

With the new perks, the system will likely become much more attractive to prospective subscribers and could increase the amount of residents served each month, leading to more regular income.

“These products are likely to be adopted and used over the long term by the majority of San Bruno residents and businesses. This will raise the value of the enterprise and create a sustainable revenue stream for the city,” according to the report.

With the revamped design, Krishnamurthy thinks a new day could be looming on the horizon for the future of San Bruno’s cable service.

“I think it is tremendously exciting,” he said.

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