CEO DATELINE - Broadcasters sue FCC to overturn decision on cable rates
CEO DATELINE - Broadcasters sue FCC to overturn decision on cable rates
- September 1, 2015 |
- Walt Williams
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Two broadcast associations are suing the Federal Communications Commission about a recent policy change that will make it much harder for local governments to regulate cable TV rates.
In suit filed Aug. 28, the National Association of Broadcasters and the National Association of Telecommunications Officers and Advisors argue the rule change was "bad for consumers and wrong on the law." They are joined in the suit by the Minnesota cable regulator.
At issue is the interpretation of a law that allows local governments or their agencies to regulate cable TV rates if they can show there is a lack of competition, according to the consumer news site The Consumerist.
FCC has granted that authority to many local governments in past years. However, a new rule issued by FCC in July presumes that satellite TV is a direct competitor to cable TV in every market. The rule essentially makes it more difficult for local governments to prove there is no effective competition in their local markets. http://bit.ly/1fTjHFu
Broadcasters fear that if more markets are deemed competitive, then cable carriers in those areas will drop local broadcast networks often offered in their basic tier of service.
The groups also are appealing directly to consumers, saying they will likely see their cable rates rise.
"By deeming the nation effectively competitive, the FCC stripped from local franchise authorities across the country their longstanding roles as cops on the beat," lead counsels for both associations wrote in a blog post on NAB's website.
The suit was filed in the U.S. Court of Appeals for D.C. http://bit.ly/1Upcwm9
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