MSOs Earn So-So Grades from NAACP - Industry Trend or Event

The NAACP blasted the cable industry last week for poor hiring and promotion practices and for not using minority-owned vendors.

The cable industry's "report card" from the National Association for the Advancement of Colored People criticized the cable industry for putting few African-Americans on their boards, not advertising in African-American media, not deploying advanced services in minority communities and generally not investing more in their franchise areas.

The lobbying organization looked at 10 MSOs, evaluating each using five criteria -- employment, service deployment, advertising/marketing, vendor, development and charitable giving -- and gave the industry an overall "C" grade.

Of the MSOs graded, the NAACP's research found that blacks are represented on only three boards. Employment is also most represented below the officer level, with few reaching executive-level status.

Operators have failed to advertise in black-oriented media and have done little or nothing to direct contracting dollar and business development opportunities toward the African-American business community, NAACP alleged.

The industry has shown a willingness to deploy new services in black communities, and three companies received an "A" when it comes to philanthropic programs. Overall, "the industry needs improvement with regard to charitable giving," NAACP said.

Each MSO examined received its own specific grade, with Prime Cable and Charter Communications Inc. each coming in on top with a "B" grade and Insight Communications Inc. coming in last with a "D" score.

Insight's management, according to NAACP, has been cooperative and has indicated it'll work with the organization to improve its ratings, but the company quickly reiterated that most of the issues the NAACP had with the company were inherited through new acquisitions.

"Insight's management inherited these circumstances with virtually no time to impact the survey's results," the company said. "Our low score reflects circumstances that simply were not under our control."

The NCTA said minority employment in the cable industry has risen steadily and noted the FCC found numbers had reached 30.9% in 1999 vs. 26% in the national labor force. It admitted more work is required in hiring managers and officers.

MSO Grades

Company                    Grade

Prime Cable                  B
Charter                      B
AT&T                         B-
MediaOne                     B-
Comcast                      B-
Time Warner                  C+
C'Vision                     C+
Cox                          C-
Adelphia                     C-
Insight                      D

SOURCE: NAACP

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