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FCC allows cable firms to lift rates without local approval
2015-06-04 14:32:00| Telecompaper Headlines
(Telecompaper) US cable providers, including Comcast, can now raise customer rates without approval from local governments under a change adopted by the US Federal Communications Commission (FCC) over opposition from broadcasters, Bloomberg reported. Currently, cable companies seek FCC approval to escape local rate-setting. Requests are almost always granted: the agency says it approved all but four of 224 since 2013. With the change, the FCC will assume cable companies deserve to escape local rate regulation. It falls to jurisdictions to ask for permission to retain that power. The FCC said it was changing its 22-year-old rule because the market has changed, with nationwide competition from satellite television. Comcast said only about 17 percent of its subscriber base was subject to rate regulation by local government. Cable companies backed the move, saying it eliminates needless red tape. Consumers Union told the FCC that "there is little evidence to suggest that today's cable marketplace is a competitive one" given subscription rates rising faster than inflation. Broadcasters fear cable companies can now assign TV-station signals to pricier tiers, cutting the audience for local programming, said Dennis Wharton, spokesman for the National Association of Broadcasters trade group.
Tags: local
rates
cable
approval
Category:Telecommunications
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