KYLE MURPHYStaff Writer

For the first time in three years, LightTube customers will see both an increase in their cable television packages and a decrease in their internet packages.

At the Nov. 28 meeting, the Tullahoma Utilities Authority Board of Directors unanimously approved the rate increase for the TV packages and decrease for the internet packages for LightTube customers. Board member and rate committee chairman Dr. Jimmy Blanks said the rate committee, he and board member Mike Stanton, met with TUA President Brian Skelton in November to discuss the costs and made the recommendation that the board approve a $15 increase on the Expanded Basic TV package, which includes channels 2 through 90, from $99.95 to $114.95, a $10 increase on the Limited Basic TV package, which is driven by the local Nashville channels, from $34.95 to $44.95, a $5 decrease on the 1 GB residential internet tier, from $79.95 per month to $74.95 per month, and a $5 decrease on the 300 MB internet tier, from $69.95 to $64.95, as well as including a two-year price guarantee until January 2026. Skelton said the rate changes would take effect in January 2024 if approved by the board.

“The internet we came down to help with the increase on the cable side,” Blanks said.

Stanton added that the reason why TUA has to increase the charges for LightTube was because the channels on the service has also increased the rates, including the local channels from Nashville.

According to the memo from Skelton to the board, wholesale video programming costs have been going up rapidly, so rate increases on cable TV could not be avoided.

“During the last three years since our last Expanded Basic increase, our wholesale channel costs have gone up 26.7%,” Skelton said in the memo. “During that same time, our Limited Basic wholesale channel costs have gone up 53.8%. LightTube continues to work keep these rate increases as low as possible but channel providers continue to charge unreasonable rates.”

Both Blanks and Stanton echoed these sentiments on the channel rate costs.

“(Those local channels) really put the screws to us on increases,” Blanks said. “We’re trying to provide a service and not take advantage of anyone.”

Mayor Ray Knowis, serving as the representative for the Board of Mayor and Alderman, said TUA anticipate see a loss in customers after the rate changes take effect in their budget. Chairman JT Northcutt said LightTube cannot al la carte channels. Both Blanks and Stanton added with the TV services LightTube broadcasts the local football and basketball games, their own local news station, the Tullahoma High School Graduation and the annual Tullahoma Christmas Parade.

 “I’ve been beta-site customer since it was offered (in 2008) and the service I’ve gotten from LightTube is second to none that I ever had from any other service,” Knowis said. “Certainly to see an increase like this is significant but I’ll challenge anyone to beat the service they get from TUA.”

Following up on Knowis’ comment, Skelton said they have always maintained that they will continue to offer TV services if customers want it, and noted that TUA’s TV packages are not the cheapest choice in the market. 

“There are cheaper options out there and if our customers want to do that we’re fine with that.” Skelton said. “We have a great internet service that will allow them to do that.”

He added that TUA was signing up 18% of its new customers with TV, and 35% of their total residential customers base has LightTube TV.

“We do have a lot of people who have it and are keeping it,” he said. “We lose 5% a year and we’ll lose out of this rate increase we’ll probably lose 20 to 30 customers and we hate to do that but we understand it’s a lot of money. It’s very expensive product driven by the programming costs.”

With no further discussion, the board passed the motion to approve the rate changes for LightTube TV and internet.