As Cable Rates Skyrocket, Calls for Re-Regulation Increase
In early July, the Federal Communications Commission (FCC) reported that cable rates had jumped 8.2% over the past year. This dramatic increase brought a quick response from Senator John McCain. The Arizona Republican called the cable rate increase “astounding” given that the inflation rate for the same period was only 1.5%. “This means that cable rates increased an unbelievable 51/2 times faster than inflation. The cable industry has risen to new heights in their apparent willingness and ability to gouge the American Consumer.”
Senator McCain chairs the Senate Commerce Committee that has oversite responsibility for the industry. The Senator has long been concerned about price gouging in the cable industry. He has asked the Government Accounting Office (GAO) to do an in-depth study of the ever-rising rates in cable. The final report is expected this fall.
On August 12, the U.S. Public Interest Research Group held a press conference and released a report entitled The Failure of Cable Deregulation: A Blueprint For Creating A Competitive, Pro-Consumer Cable Television Marketplace. The report observes that since the passage of the 1996 Cable Act, cable rates have skyrocketed, service levels have declined, cable concentration has heavily increased and cable operators have effectively exploited statutory loopholes in order to deny vital programming content to emerging competitors. The complete study is available at http://uspirg.org/reports/failureofcabledereg.pdf.
It is clear that the cable industries abuse of consumers, workers and communities is reaching a point where the public is now willing to fight back. Comcast, the largest provider of cable services has been a particular abusive provider and very aggressive in their assaults on communities, consumers, and their own workers. Comcast is currently suing San Jose and Modesto because those cities have tried to force them to obey the law with regard to re-franchising and consumer safety. Comcast is also engaged in a nationwide effort to deny workers their rights under the National Labor Relations Act.
