Media Contact: 
Janice Wise, (202) 418-8165
janice.wise@fcc.gov

For Immediate Release

FCC SEEKS TO REFORM ITS CABLE RATE REGULATIONS 

WASHINGTON, October 23, 2018—The Federal Communications Commission today adopted a Further Notice of Proposed Rulemaking and Report and Order addressing cable rate regulations.  

The Communications Act requires the Commission to adopt regulations to ensure reasonable rates for the most basic tier of cable service.  In the overwhelming majority of the United States, basic service tier and equipment rates, together known as cable rates, are no longer regulated because the markets are deemed to be competitive by law due to the availability of satellite television and other services.  However, in some communities in two states, Hawaii and Massachusetts, rates remain regulated.  Under our current rules, cable operators in those markets must use a series of FCC forms to calculate reasonable rates that local franchising authorities must review and approve.

Today’s FNPRM seeks comment on whether to adopt fundamental changes to the Commission’s existing complex cable rate regulation framework.  For example, it asks whether we should eliminate all existing rate regulation forms and create a simplified structure for ensuring reasonable basic service rates in those few localities that remain rate regulated.  

Alternatively, it seeks comment on updating the existing cable rate regulation rules, including limiting equipment rate regulation, exempting small cable systems owned by small cable companies from rate regulation, and clarifying that cable services provided to commercial establishments such as office buildings and shopping malls are not subject to rate regulation.  It also seeks comment on streamlining the initial rate setting methodology, which requires using data from as far back as 1992.  These proposed changes would eliminate multiple FCC forms and rules.

The Report and Order eliminates or revises rules that have become obsolete due to the sunset of rate regulation for cable programming service tiers, are unnecessary given changes in industry practices, or have become obsolete due to changes in Commission policy.

Today’s proceeding is the thirteenth in the Commission’s ongoing effort to modernize its rules by eliminating or modifying regulations that are outdated, unnecessary, or unduly burdensome.

Action by the Commission October 23, 2018 by Further Notice of Proposed Rulemaking and Report and Order (FCC 18-148).  Chairman Pai, Commissioners O’Rielly, Carr, and Rosenworcel approving.  Chairman Pai and Commissioner O’Rielly issuing separate statements.

MB Docket Nos. 17-105, 02-144; MM Docket Nos. 92-266, 93-215; CS Docket Nos. 94-28, 96-157

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This is an unofficial announcement of Commission action.  Release of the full text of a Commission order constitutes official action.  See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).