Article Courtesy of The Sun Sentinel

By Daniel Vasquez

Published January 12, 2009

With so much competition for TV services out there – cable, satellite, and broadband – does it make sense for condominium and homeowner associations to sign up for long term bulk rate service?

It depends on the association. Those making the decision need to consider association rules, details of the bulk contract and ways to save on price. And they must realize not everyone will agree with their decision.

Associations are allowed by law to sign up for bulk contracts, and the reason most do is because buying for large numbers is a way to bargain for lower overall prices per unit owner.

"We are absolutely happy with the bulk TV contract we have," said Adele Caso. Her Hillsboro Beach condo association signed up with Comcast for its 160-plus units more than two years ago. Caso says it cut her previous TV bill from $110 a month to $63.

And $50 of that bill is her individual charges for premium channels. About $13 is what neighbors pay monthly for basic service.

But I also hear from readers like Lou Green of Sunrise who says his association's cable contract is 11 years and has built in cost increases.

A long contract like that "may be completely off base with all the competitive changes," he says.

AT&T recently began offering its new U-Verse Internet Protocol service (via a cable from the street) in bulk contracts to associations in South Florida.

And there are ways to help make sure your association gets the best contract and deal, says Corey Hayes, director of sales for DirectPlus LLC of Coral Gables, which provides bulk cable and Internet services for condo and homeowner associations.

"We help condo associations in Broward and Palm Beach counties get TV service for their unit owners that are 30 to 40 percent off retail prices, and help them choose what is best for their community, whether it's a package of 50 or 150 channels."

The No. 1 complaint he hears from associations is they didn't know their contract can be written so it automatically renews.

Hayes said it is important to check the contract for the expiration date, as well as whether the contract calls for an official 90-day "notification" from the association that it wants to end the contract.

"If you don't give notice, a contract can renew for five years or whatever term" stated on the contract, Hayes said.

Here are areas of a bulk contract that associations should look out for when signing up:

Get several estimates. Don't go with the first company you come across. And make sure you ask the same questions about service, equipment and programming of each company.

Choose the right term. Contracts typically last from 5 to 10 years. The longer you sign up for, the lower the price. But keep in mind TV technologies and services (along with prices) change rapidly and being locked in for a long time can be restrictive.

Who owns the wiring? It's to the advantage of the association to negotiate to own all of the wiring once the contract expires. And to know whether the wiring system can be used by other providers.

Renegotiate at the best time: Hayes says associations have "incredible power" to negotiate with a current provider 18 months or less prior to when the contract expires. Keep in mind, bulk rate contracts are not exclusive, meaning they do not stop a unit owner from signing up for another available service as long as they pay the fees owed to the association for common service.

Report nonpayers: Many service providers, when contacted by a board or management company, will cancel service to individual units when owners have stopped paying for service.

What do you say? Has your association recently signed up for service or considering doing so? Are you a member of an association with a bulk contract who is happy or unhappy? Contact me or leave a message online on the column message board or send a message at Twitter.com/ConsumerDan.

Daniel Vasquez can be reached at:

[email protected] or at 954-356-4558 (Broward) or 561-243-6686 (Palm Beach County). His condo column runs every Wednesday in the Local section and at www.sunsentinel.com/condos. You also can read his consumer column every Monday in Your Money and at www.sunsentinel.com/vasquez