Big Cities Turn To FCC To Tap Cable Broadband Fees

Some major US cities are targeting a federal rule that likely stands between them and a gusher of broadband gold. Under current Federal Communications Commission rules, cable’s broadband revenue is off limits to local taxing authorities. Several big cities are making an effort to abolish that tax barrier enshrined in the FCC’s “mixed use” rule, an effort which could end up allowing cities to tap into cable’s billions in broadband revenue. The mixed-use rule, reaffirmed by the FCC in 2019, prevents cities from adding telecommunications or information service fees on cable operators. When the FCC established the mixed-use rule, Democratic FCC Chair Jessica Rosenworcel (then Commissioner) dissented. Since gaining a one-vote majority last September, Rosenworcel has unveiled several regulations directly aimed at the cable industry, including: Net Neutrality, digital discrimination, a ban on early termination and billing cycle fees, all-in pricing mandates, retransmission consent blackout reporting requirements, and pay-TV subscriber rebates related to TV blackouts.