Two vie for AFN cable TV

An Ashland Fiber Network employee and a retailer of AFN's Internet services have submitted proposals for taking over AFN's cable television operations.

The City of Ashland wants someone else to run its money-losing cable television service. AFN will continue to operate the profitable Internet services, which it sells through Internet Service Providers like Ashland Home Net.

Both AFN Head End Technician Dan Nelson and Ashland Home Net Owner/President Gary Nelson submitted proposals by a Thursday deadline.

To help ensure that each party is treated fairly and competes on a level playing field, the details of the proposals will remain confidential until after the Ashland City Council awards a contract, said Ashland Purchasing Representative Kari Olson.

The privacy of the process is dictated by Oregon law and the Ashland Municipal Code, she said.

Ashland Information Technology Director Joe Franell, who heads AFN, will present a contract for possible approval to the city council on Sept. 19.

Dan Nelson, who is not related to Gary Nelson, said he does not want to offer details of his proposal at this time, but will share his plans if he wins the contract.

Franell said Dan Nelson's responsibilities with AFN include running the technical side of cable television operations.

Gary Nelson also did not want to disclose details of his proposal, but he said taking over the cable television service offers benefits for his company and AFN customers.

Ashland Home Net already is one of the largest retailers of AFN's Internet services, he said.

Ashland Home Net customers could buy Internet and cable television services together and receive just one bill. The company also has been exploring other high-tech products it could offer to customers in a convenient package with television and Internet, Nelson said.

Some AFN Internet retailers have worried that if the city gets out of the cable television business, customers who switch to Charter Communications cable television might also buy Internet services from that company.

"It's an opportunity to help customers stay with us," Gary Nelson said. "We didn't want to lose Internet customers because they couldn't get television." The City of Ashland has lost money on cable television largely because it and Charter have offered below-market rates. A citizens' programming committee also made channel line-up decisions for the city without regard to profits. Paying for the channels is a major part of AFN's cable television budget.

Gary Nelson said if awarded the contract, he would work to understand what channels residents want, but he would also have to consider the profitability of channel offerings.

Franell said he is not disappointed that no large companies stepped forward with an offer for the city's cable television. Instead, the cable television service would remain a local enterprise with more direct customer service.

"Having a smaller player usually translates into better customer service," he said.

The person or company which takes over AFN's cable television would lease AFN's facilities. The city's contracts with providers of television channels would end once the city no longer had customers. The new party would negotiate its own contracts, Franell said.

A selection committee made up of Franell, AFN Operations Manager Michael Ainsworth, Ashland Computer Services Superintendent Richard Holbo, Ashland Finance Director Lee Tuneberg and City Councilor Russ Silbiger will examine the proposals from Dan Nelson and Gary Nelson and interview the two, Franell said.

In the meantime, he said AFN cable television customers do not have to make any changes.

"We are not shutting off their cable. We're diligently working to provide them with an alternative so that at the end of the day, they're not forced to go to the competition," Franell said. "Just be patient. You're going to have a choice."

Staff writer Vickie Aldous can be reached at 479-8199 or vlaldous@yahoo.com.