FCC: Are You Paying Too Much For Cable?

Agency Launches Investigation Into Pricing Practices Of Major Cable Providers

(AP)  The Federal Communications Commission has opened an investigation into the pricing policies of major cable operators and Verizon Communications Inc.

The agency wants to ensure the companies' customers are getting treated fairly, FCC Chairman Kevin Martin in an interview with The Associated Press.

"I'm certainly concerned with the increasing cable prices that consumers are facing," Martin said. "They are getting less and being charged the same or more."

The FCC wrote on Oct. 30 to cable operators including Comcast Corp., Time Warner Cable Inc., Cox Communications Inc., Charter Communications Inc., Cablevision Systems Corp., Bright House Networks, Suddenlink Communications, Bend Cable Communications, GCI Company, Harron Entertainment and RCN Corp.

Verizon, which offers pay-TV services with FiOS, also was included in the probe.

The agency's letter questioned the companies' practice of moving analog channels into digital tiers to free up bandwidth for other uses, such as high-definition channels. Analog customers will have to get a digital set-top box from the operator or buy the digital TV tier to watch those channels.

Cable is competing with satellite TV and phone companies.

Most cable customers are analog customers, and those who do not wish to upgrade to digital cannot watch the channels that are moved to the digital tier.

The agency also will look into whether cable operators and Verizon are confusing customers by linking the shift of the analog channel to the digital tier to the nation's transition to digital broadcasts, Martin said.

The two moves are unrelated.

Linking the two in customers' minds could prompt more people to opt for digital video and cable services because the February digital TV transition is mandated by the federal government. The FCC has asked companies being probed to submit information about their pricing practices within two weeks.

Martin said it appears consumers weren't given "appropriate notice" about the channel changes.

He said the FCC has received a "significant" number of consumer complaints about the practice of moving analog channels to digital, which has accelerated this year.

The FCC's letter was sent out a day after Consumers Union sent a letter to the Senate Committee on Commerce, Science and Transportation asking for an investigation into the practice of moving analog channels to the digital tier.

"Consumers are left paying the same monthly rate for significantly less service, or must rent more expensive set-top boxes for each television set they own," said Consumers Union, a nonprofit advocacy group.

[eggy1620]

What really needs to happen is further deregulation, to the point that networks can be their own programming distributors. The technology exists for this to happen. We do not really need all the Time Warners, Comcasts, Cablevisions, etc. for broadcasting. The FCC has granted these pirates geographic monopolies. The time has arrived for us to be able to pay NBC, ESPN, Disney, etc. directly if we want to receive their programming and let those networks have access to the broadcasting infrastructure. That would promote communications as a more perfect (free) market.

[sosoftail]

When I call they will tell me my phone, internet or cable package had expired so it went up. When I get a bundle I thought it stayed the same each month but it never has. I saved my bills and it is so confusing.

Today I called again and they tell me I had a credit last month so it was less but after this month will adjust and go down again by a few dollars.

If you get basic expanded you are charged for that but also charged a separate charge for basic. It is a ripoff. I even turned in my boxes and now it is higher than my bundle was originally. They try to tell you you already have the best price.

Well, I asked about why I was losing some channels I originally had. They tell me I am on analog cable and not digital. I thought it was all digital since my TV digitalizes into those squares during any storm. I asked if I would lose TV when they turn off analog but they tell me no. ???? I don''t understand that and they tell me I can upgrade to digital which is higher of course. The reason for losing those channels is some companies have already switched to digital so I am losing those and not Charter''s fault. If you followed this then that makes no sense at all. I want to scream at them but like a dumb cow I just thank them and hang up because really what can I do? I hope they make them send us all checks for overcharging and also press criminal charges for those that come up with this double talk they give customers.

[grvmstrj]

THE FCC DID NOT JUST REALIZE THIS. THEY ATTEMPT TO MAKE THE CONSUMER FEEL THAT THEY ARE CONCERNED-NOT!

Just as the skyrocketing gasoline prices faced earlier this year. Politicians (Dems & Reps) got concerned too late and did too little. Prices coming down now have NOTHING to do with their "concerns" over price gauging etc.

[grvmstrj]

These companies have been getting away with overcharging and under servicing the public far too long! Just recently Warner canle cut-oof my service by accident on a Friday and would not come out to rectify THEIR mistake until Monday-some 72 hrs. later!! I pay more now for basic cable as I did in the not so distant past, when I had 3 (three) premium channels-and they are threatening to raise it again ---soon!

[cbscrash072]

I will be canceling my satellite service soon. I am mostly upset with the amount of commercials. I keep asking myself why am I paying for commercials? Why am I paying for channels I don''t watch? Why am I paying for channels that play infomercials all night? I can get most of the shows I watch off of iTunes for far less money than the satellite. I can also watch alot of shows for free on Hulu.com. A lot of channels have their own website and you can watch their content from there. You don''t need an Ipod to use Itunes. Download the software and take a look around. You may like what you see and if you don''t uninstall it. You can share your media among multiple computers. I think the internet is the future of television because it allows station operators or media producers to deal directly with the public bypassing the cable or satellite companies distribution systems.

[backhomeco]

It''s about friggen time the FCC got off their duff to investigate the cable/satellite industry. The industry has always taken advantage of their customers from the get-go. Customers are relatively new to the service and have not been aware of the technical details. Quite frankly, considering every household will need cable/satellite (now that free TV has met its demise), they should charge no more than $10 per month, and average about $5 per month -- they would still make a profit and a comfortable living for their employees. Also, tell your cable/satellite company to offer "a la cart" programming. Demand the opportunity to select individual channels you want to watch versus having to select ''packages'' that include programming that you don''t want.

[inventagod2]

$50 a month to watch basic TV here in California.

For what we used to get off the air for free!

[achangenow]

These cable companies need to be regulated and offer consumers packages they want and can afford. We make up 2/3 of the economy so our voices must be heard! I''m glad this issue is being investigated.

[mtngurl8]

now is the time to complain long and loud. Bush deregulated even the cable companies in his pursuit of the perfect capitalist society. See how great it works out for the average American. Now that we have new govt. we need to demand change left and right.

[indianaman13]

What kills me about DSL, cable, and land phone lines is the fact the wiring for each was put into the ground years and years ago. The labor and material used to install the land lines have been paid for many times over. The companies that keep raising the prices are simply price gouging the consumer for more and more with little overhead. They are making billions off us, and only have to spend a few million to upkeep the services.

[indianaman13]

What kills me about DSL, cable, and land phone lines is the fact the wiring for each was put into the ground years and years ago. The labor and material used to install the land lines have been paid for many times over. The companies that keep raising the prices are simply price gouging the consumer for more and more with little overhead. They are making billions of us, and only have to spend a few millions to upkeep the services.

[chakotay3]

Cable TV companies are giving customers less and charging the same or more? So what else is new? When was the last time you saw a 5 pound bag of sugar or a 3 pound can of coffee? Almost everything is being downsized in relation to the product and upsized in relation to price. It''s all a way to skin the customer without his/her realizing it.

Cable companies should not be allowed to move channels from analog to digital unless they continue to allow the customers to access them without extra charge. Just another corporate rip-off.

[ray999999]

cable has been overcharging for a long time and the service gets worse the fcc is nothing but puppets who will do nothing to change the cable rip-off,

[longtree-2009]

cable broadband access is priced high, as well as video, but so are telecom services with their bundling. telecom dsl is priced too high as well. corporate lobbying will ensure all cable and telecoms get what they want, when they want it, how they want it. the FCC is impotent.

[oneworldusa]

"The two moves are unrelated."

I called Comcast late last year to inquire why they kept taking channels away from my basic cable while my bill was going up. No discounts for cutting services.

I was told it was because of the changeover and there was nothing they could do. Liars. So, it happened to me. Thank goodness someone decided to investigate their raunchy business practices. Hope it pays off for the consumers.

[swingset4u]

I was wondering what all the signs around town were about...

[u-r-right]

Why not look into satellitte pricing too. It''s just about as much as cable. I don''t need all the fluff. They need to bring back a true basic service or one that allows you to choose which channels you want to pay for.

[hennighg]

Well, here in my hometown of Champaign, Il, you can''t get hooked up for under 100 dollars a month. I can''t afford that. I''m 55. Give me a few decent cable channels and let it go at that. I don''t listen to music or watch movies on the TV set. I don''t have to have 1,133 streaming channels and all that rigermarole. So I don''t get cable. Have the Major League post season I missed. How about $40 a month for what I want instead of $115 for what I don''t.