Cable Rate Regulation

Cable operators have been sending the FCC a steady stream of requests to be exempted from local rate regulation. And the FCC is granting those exemptions. Since Feb. 1, the FCC relieved such cable operators as Charter, Cox and Time Warner of local franchise authority (LFA) control over monthly rates for basic cable service and gear such as remote controls and set-top boxes in areas with more than 2.3 million homes. By the end of May, the FCC was granting exemptions for cable systems in areas with 900,000-plus homes. Cable providers can escape local rate regulation in places with at least two pay TV rivals with at least 15% of the market. The rising penetration of DBS is spurring the rapidly growing petitions from cable operators.
[SOURCE: Communications Daily, AUTHOR: Jonathan Make]
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