[RTC List] FCC Fines Cable Operators

[Sean McLaughlin]

For educational purposes only, here's more general information on the 
FCC's action yesterday - from Multichannel News.  The primary concern 
appears to be "channel slamming" by some cable operators - and public 
accountability. 


Multichannel News

http://www.multichannel.com/article/162398-Martin_On_Way_Out_Fines_Cable_Operators.php

 

 


  *Martin, On Way Out, Fines Cable Operators*


    *FCC Chairman's Last Lick: Levies $225,000 In Fines Against Nine Ops*


      *Ted Hearn -- Multichannel News, 1/19/2009 4:00:00 AM MT*

Washington -- Federal Communications Commission chairman Kevin Martin 
has proposed to fine nine cable companies $25,000 each for failing to 
respond fully to an investigation into the movement of analog channels 
to a digital tier.

The $225,000 in combined fines, issued Monday night by Martin's chief of 
the Enforcement Bureau, may be appealed to FCC's commissioners and later 
in federal court. Martin is resigning Tuesday.

The FCC proposed to fine the following cable operators: Bright House 
Networks, Cablevision Systems Corp, Charter Communications, Comcast 
Corp., Cox Communications, Harron Communications, Midcontinent 
Communications, Suddenlink Communications and Time Warner Cable.

Four distributors that received letters in October but were not issued 
proposed fines Monday were: Bend Cable Communications, GCI, RCN, and 
Verizon Communications.

Martin sent a letter Monday to Senate Commerce Committee chairman Jay 
Rockefeller (D-W.Va.) to announce the fines. A copy also went to ranking 
member Sen. Kay Bailey Hutchison, the Texas Republican whose surname was 
misspelled twice.

Martin blasted the cable operators for failing to cooperate.

"Misconduct of this type exhibits contempt for the FCC's authority and 
threatens to compromise the FCC's ability to adequately investigate 
violations of its rules," Martin said.

Martin's Enforcement Bureau chief Kris Anne Monteith issued additional 
fines and proposed fines totaling another $277,500, bringing the total 
amount to $510,000.

Cablevision, for example, received a $22,500 fine for failing to give 
subscribers in Randolph, N.J., the required 30 days notice before moving 
A&E, Animal Planet, and E! to digital. Cablevision also received four 
$7,500 fines for not providing 30 days notice as required by FCC rules.

Time Warner was the mostly heavily fined at $137,500, with $97,500 
related to channel changes made in Hawaii to launch switch digital video 
technology. The FCC faulted the SDV move because consumers with 
CableCard-enabled TVs needed to lease a set-top to see all channels that 
were available before the SDV rollout.

Martin ordered his staff to look at cable operators that moved analog 
channels to digital and required consumers to lease set-top boxes to 
maintain access to migrated channels.

In the letter to the senators, Martin complained that cable operators 
didn't reduce rates for analog-only consumers that lost channels and 
didn't lease a digital set-top box.

"In short, cable customers have been receiving less from the cable 
companies but paying the same price or, in some cases, more," Martin 
said. "For consumers, this situation is unacceptable."
Martin said the FCC received "nearly 600" complaints about cable's 
channel changes. Cable has 64.7 million video subscribers nationally.

In December, National Cable & Telecommunications Association President 
Kyle McSlarrow announced an industry plan to stop moving nearly all 
channels from analog to digital tiers during the first two months of 
2009 to minimize potential consumer confusion about the federally 
mandated shut off of over-the-air analog TV signals on Feb. 17, 2009.

The FCC sent letters to the cable operators in late October requesting a 
voluminous amount of data, including highly sensitive pricing terms in 
programming contracts. The FCC gave 14 calendars to respond, which some 
cable operators felt was insufficient, given that the FCC wanted data as 
far back as 2006.

 


-- 
Sean McLaughlin
Executive Director
Access Humboldt
P.O. Box 157, Eureka, CA 95502
tel: 707-476-1798
dir: 707-476-2873
fax: 707-476-1702
cel: 707-616-2381
e: sean at accesshumboldt.net
web:  http://accesshumboldt.net

"Local Voices Through Community Media"



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