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November 22, 2004

FCC Pooh-Poohs a la Carte Cable
Federal regulators rejected on Friday the idea that allowing cable TV subscribers to pay only for channels they want would lower high cable bills. Consumer groups said the analysis was flawed.

In a report to Congress, the Federal Communications Commission said cable bills would increase under a system that would let people pay for individual channels instead of the bundled packages they currently are offered.

The analysis by FCC staff found the average cable household watches about 17 channels, including over-the-air broadcast stations. If a subscriber purchased that many channels under a pick-and-choose system, he probably would face a rate increase of at least 14 percent and as much as 30 percent, the analysis said.

According to the report, an "a la carte" pricing system would drive up cable companies\' costs for equipment, customer service and marketing, and the charges almost certainly would be passed to subscribers.
Posted by yatta at 03:43 PM