The latest controversy at the Federal Communications Commission involves cable TV competition and rate regulation, and it could end with cable companies facing fewer price restrictions in cities and towns.
Local franchise authorities may regulate the rates cable TV providers charge for "basic" cable service and equipment, but only if the local cable company does not face what's known as "effective competition." Today, the burden of proof is on cable companies to show that they face effective competition, but the FCC is considering a change that would shift the burden of proof to local authorities by adopting a "rebuttable presumption" that cable operators face effective competition.
While cable companies have cheered the proposal, the FCC's own Intergovernmental Advisory Committee (IAC) last week said that such a move "is contrary to the public interest." Besides limiting rate regulation—which is already rare—the proposal would eliminate other consumer protections, the IAC said.
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