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FCC to probe pricing policies of cable TV providers

PHILADELPHIA — The Federal Communications Commission has opened an investigation into the pricing policies of major cable operators, including Charter Communications Inc.

The agency wants to ensure the companies’ customers are getting treated fairly, FCC Chairman Kevin Martin said in an interview.

"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 Thursday to cable operators including Town and Country-based Charter, Comcast Corp., Time Warner Cable Inc., Cox Communications Inc., Cablevision Systems Corp., Bright House Networks, Suddenlink Communications, Bend Cable Communications, GCI Company, Harron Entertainment and RCN Corp.

Phone-service provider Verizon Communications Inc., which offers pay-TV services with FiOS, also was included in the inquiry.

The agency’s letter questioned the companies’ practice of moving analog channels into digital tiers to free 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.

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 no fax pay day loans.

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 digital TV transition in February is mandated by the federal government. The FCC has asked companies being investigated 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.

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Dieser Beitrag wurde am Thursday, 06. November 2008 um 10:16 Uhr veröffentlicht und wurde unter der Kategorie economics abgelegt. Du kannst die Kommentare zu diesen Eintrag durch den RSS-Feed verfolgen.

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