Cablevision: Dereg in Massapequa Park

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CABLEVISION: DEREG IN MASSAPEQUA PARK
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Cablevision Systems Corp. is asking the Federal Communications Commission to remove price controls on a system in a Long Island community where Verizon Communications Inc. has launched a competitive pay TV service. If the FCC grants Cablevision’s request, the Village of Massapequa Park, N.Y., would be barred from capping Cablevision’s basic-tier rate and from requiring the company to market a uniform rate structure to all 7,400 village households. Another rule that would go away is the FCC’s tier-buy-through requirement, which bars cable companies not facing effective competition from requiring consumers to buy one or more tiers above basic in order to purchase pay-per-view or premium channels. In theory, rate regulation is considered a proxy for competition. Where competition is demonstrated, the FCC is authorized to remove various restrictions on incumbent cable operators.
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