Competition may or may not be good for the soul, but it is almost always a good deal for consumers. Since the initial opening up of the playing field in cable service provision in March for selected areas of the central peninsula - giving consumers the option of RCN Telecommunications or ATT Cable Services - area city officials have great expectations that forcing the two companies to compete for the consumer dollar will in the end result in better service and more affordable prices.
"Clearly the community has felt that one provider has led to lesser service," said San Mateo City Manager Jim Nantell. "[Residents] are happy there will be another provider."
RCN, however, has a piece-meal service strategy that is coupled with a one-stop-shopping type of product and the concrete benefits they are offering to area customers appears to be getting somewhat mixed reviews.
"The way we do it, is neighborhood by neighborhood," said Nancy Pavac, the spokesperson for RCN. Pavac added that with RCN's Resi-Link program, they are installing an entire network into designated areas within the central peninsula, with a long-term vision of fully penetrating the entire residential market. Resi-Link provides long distance and local telephone services, high-speed Internet access and cable television.
The real benefit for consumers it seems is bargaining power.
RCN, the Princeton, NJ-based firm has in fact held monopolies themselves in a few locations on the east coast, according to Pavac. Cablevision, a rival company, recently moved into an RCN market as the second provider. "Competition," she said is "is always good for the consumer. It forces us to be a better company. It's making us a better company. We're basically upgrading ours service now because we know we have to, or customers will go someplace else."
"We are basically coming into the situation, saying 'hey we are a choice,' " Pavac said in reference to the recent move into the peninsula area.
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