The FCC began an investigation in the cable industry last October, to ensure that cable companies would not take advantage of the over-the-air television broadcasting switch from analog to digital in February.
As it turns out, their suspicions were correct. I called Comcast about an unrelated issue recently, and my television lineup became a topic of conversation. Most government-sponsored ads on TV about the digital switch say that if you have cable, you will not need to make any changes. But the representitative from Comcast said, “Oh no, everything is changing.” When asked about the details, he said, “All those TVs you have that aren’t connected to a digital box will lose channels 30 and up.” They’re moving over half of their analog channels to a digital tier, which requires a Comcast-owned cable box to decompress. Renting these extra cable boxes will require all customers to pay more money per month, unless they don’t watch any channels above 30.
Comcast freely admitted it was guilty to me. Probably because I’m just a customer who will be pissed if what he says turns out to be true on February 17.
The FCC investigation has proven difficult. The cable companies are complaining that the amount of information requested by the FCC simply could not be gathered and presented by the deadline. I read that as either their entire IT department is incompetent or they don’t want to get caught. I’m guessing the latter. Big cable is simply ignoring the FCC.
Most recently, the FCC has fined all of the cable companies under investigation a five figure sum for not complying. Laughable! Comcast, the largest cable provider in the US, is a 30 billion dollar annual revenue generator. Proportionately, a similar fine would require me to cut a penny into about 30 equal pieces and give one of those to the FCC.
From an Ars Technica article, which summarizes a letter by Kevin Martin, who was the chair of the FCC under the Bush adminstration:
The price for every other service that the FCC regulates has gone down, Martin charges. Wireless down 85 percent, long distance calling by 50 percent, and international calling by almost 90 percent. But not cable, whose prices the FCC’s now ex-chair says have doubled since 1992.
If cable prices continue to grow at a similar rate, I can imagine a very vivid future without cable televsion. Internet video is growing in quality and popularity every day.