The FCC is using streaming services as an excuse to raise cable rates
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The rise of streaming services could give cable companies an excuse to raise rates under a Federal Communications Commission order handed down on October 25th. The order, which comes in response to a petition by Charter, finds that AT&T’s TV Now streaming service qualifies as reasonable competition for conventional cable, opening the door to a massive deregulation in monopoly cable markets.
Under the Cable Act of 1992, local regulators are permitted to regulate cable prices in markets with only one provider. The provision is meant to prevent cable companies from leveraging that monopoly power to set unfairly high rates. When a new cable company comes to town, providers can file a petition to have those regulations removed.
Charter’s case...