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November 29, 2005

In what's a surprising turnaround, the FCC is expected to support "a la carte" pricing of cable channels, reports Reuters. This would stand in stark contrast to an earlier FCC report praised by the cable industry, which suggested such a move would result in higher prices for consumers.

That original report (pdf), which we discussed last fall, was attacked by consumer groups. "The study was rigged against consumers in favor of large cable companies, giant broadcasters and other media behemoths," concluded Gene Kimmelman of the Consumer's Union, publishers of Consumer Reports (see statement).

As cable-rate-hike season rolls around each year, the idea gets brought up as a possible panacea, but is never implemented. One of the plans largest proponents, Senator John McCain, seemingly lost interest in pushing the idea after the FCC report surfaced.

According to the Wall Street Journal, this new report will conclude that a la carte pricing could lower prices for television viewers. FCC chief Martin will back the idea of a "family-friendly tier" of cable channels. But will such a regulation-loathing FCC head actually get the pricing scheme implemented?