Comcast DTV pricing response may bring fine: FCC

Tue Nov 18, 2008 1:26pm EST

By Kim Dixon
Reuters

http://www.reuters.com/article/industryNews/idUSTRE4AH71B20081118


WASHINGTON (Reuters) - Comcast Corp could be fined for its inadequate 
response to a Federal Communications Commission request for information on 
cable company policies as they switch to digital signals, FCC Chairman 
Kevin Martin said on Tuesday.

The U.S. FCC sent letters earlier this month to about a dozen businesses -- 
mostly cable companies -- after receiving complaints that some are 
ratcheting up prices for programing packages or requiring customers to buy 
digital set-top boxes for fewer channels ahead of the digital switch on 
February 17.

Some of the companies have failed to respond completely and may face fines 
or other enforcement action, Martin told a panel discussing 
telecommunications policy in Washington.

He specifically noted Comcast's response.

"They didn't even answer the questions directly. They had a narrative," 
Martin said.

A Comcast spokesperson said the company would meet the FCC and noted it 
would have taken 1,500 man-hours to compile one year's worth of what the 
commission had requested.

The industry contends the FCC lacks authority to demand such information 
because it does not have the power to limit cable television rates. The FCC 
does regulate basic cable tiers and consumer notice of programing changes.

Martin and consumer groups have long complained about cable television 
prices rising when rates for other technologies, such as cellphones, have 
fallen. Cable television prices nearly doubled in the decade ended in 2005, 
according to the FCC.

The cable industry has said the transition of broadcast programing to 
digital means cable companies must also make changes requiring a new 
set-top box and different channels and packages.

Last month, the Consumers Union complained to lawmakers that Comcast Corp 
and other cable companies may be fueling growth by "reaching into the 
pockets of their subscribers."

The FCC letters went to Comcast, Time Warner Cable Inc, Bend Cable 
Communications, Brighthouse Networks, Cablevision Systems Corp, Charter 
Communications Inc, Cox Communications Inc, GCI Co, Harron Entertainment 
Co, RCN Corp and Suddenlink Communications.

Verizon Communications Inc, a telephone company that provides services that 
compete with cable TV, also received a letter.

U.S. television broadcast signals will switch to digital from analog on 
February 17 under a congressionally-mandated order to free the analog 
airwaves for emergency and other uses.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

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