Cable lobby and Republicans fight proposed ban on early termination fees

The Federal Communications Commission has taken a step toward prohibiting early termination fees charged by cable and satellite TV providers. If given final approval, the FCC action would also require cable and satellite providers to provide a prorated credit or rebate to customers who cancel before a billing period ends. The new rules are being floated in a Notice of Proposed Rulemaking (NPRM) that the FCC voted to approve in a 3–2 vote, with both Republicans dissenting. The NPRM seeks public comment on the proposed rules and could lead to a final vote in a few months or so. Cable lobby group NCTA-The Internet & Television Association opposes the plan and said it will submit comments to support "consumer choice and competitive parity." "We do not support banning consumers from choosing a service plan with discounted rates in exchange for long-term service agreements that may include early termination provisions," the NCTA said. "The FCC should understand that its proposals would amount to rate regulation and result in consumers having fewer options."