Charter, citing competitive growth, seeks deregulation.Charter Communications Charter Communications NASDAQ: CHTR is an American company providing cable television, high-speed Internet, and telephone services to more than 5.7 million customers in 29 states. It is the third-largest publicly traded cable operator in the U.S. Inc., the lone cable television franchisee in Long Beach, has petitioned federal officials to be relieved of city regulatory oversight, in a move that could eventually lead to higher rates. Charter is making the petition under a provision of the 1992 Cable Act that says cable providers can be relieved of city regulations if they demonstrate that at least 15 percent of area households are served by other "multi-channel" television providers, like satellite services. St. Louis-based Charter said in its filing late last month that 16.9 percent of Long Beach households subscribed to satellite television services, a claim the city called suspect. Charter has based its estimate of satellite penetration on a report by the Satellite Broadcast Communications Association, based on a five-digit ZIP code zip code System of postal-zone codes (zip stands for “zone improvement plan”) introduced in the U.S. in 1963 to improve mail delivery and exploit electronic reading and sorting capabilities. survey. That survey is considered less accurate than a nine-digit ZIP code report the association compiles. If the petition to the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. is approved, Charter could raise basic cable charges on its 75,000 subscribers in Long Beach above the current monthly rate of $16.60 without city approval. Bob Sepe, president of Cary, N.C.-based Action Audits LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which is representing the city in opposing Charter's petition, said the 16.9 percent estimate was faulty because the five-digit ZIP code survey includes households beyond the city lines and Charter's population estimate is drawn from outdated 2000 Census data. "The law is you have to count the satellite subscribers in the franchise area," he said. "Charter doesn't do that. They use an allocation process where they count by ZIP codes." Craig Watson Craig Robert ("Wattie") Watson (born 2 June, 1971 in Invercargill) is an athlete from the New Zealand, who competed in triathlon. Watson competed at the first Olympic triathlon at the 2000 Summer Olympics. He took sixteenth place with a total time of 1:50:01.85. , vice president of communications for Charter's Western region, said the company has no intention of raising rates. "The fact is, the most effective price control the city has on our rates is the competition from satellite. It's not as if our basic customers don't have options, it's called the antenna on your roof. Our satellite competition has none of the bureaucracy we have to go through; no local taxes, no franchise commitment." Steve Horvitz, a partner at Cole Raywid & Braveman LLP LLP - Lower Layer Protocol representing the company, said the application may not be ruled on for months. "What's sparking this is just a matter of housekeeping," he said. "It's less administration work to keep up with regulatory issues." Appeal follows investment Charter has made a substantial investment in its Long Beach franchise, which last year became the first all-digital cable system in the nation. Charter got the Long Beach franchise in 1997. About 70 percent of its subscribers have switched to the 91-channel basic package from traditional analog service, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. trade magazine Cable Digital News. Charter has also filed petitions to be deregulated in Asuza, Duarte, Malibu, Montebello, Norwalk, Temple City, Walnut, West Covina West Covina, city (1990 pop. 96,086), Los Angeles co., S Calif., in the San Gabriel valley; settled 1905, inc. 1923. Before World War II, West Covina was a small rural community where walnuts, wheat, and livestock were raised. and Whittier, and has already been deregulated in two franchise areas of Calabasas. Adelphia Communications Corp. also has petitioned the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. to be deregulated in a number of Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, municipalities, including Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Calabasas, Palmdale and Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. . In all, the FCC said it received 158 petitions nationwide in 2004. The National Cable & Telecommunications Association has been lobbying the FCC to have entire states deregulated wholesale based on statewide average satellite subscriptions. While cable operators have generally called the effort administrative and not a play to raise rates, some city officials are concerned. "In a situation with no rate regulations, it's all governed by market forces," said Brian Grogan, a shareholder at Minneapolis-based Moss & Barnett LLP, who represents several cities in negotiating cable franchise arrangements. "A cable company is free to give a lower rate to a guy in one part of town where there's competition (from satellite) than the guy on the other side of town. That's a problem for elected officials who want to represent all their constituents in different parts of town." While basic cable accounts for only 5 percent of total cable subscriptions, according to Grogan, it is a necessary first service for expanded cable. If basic rates go up, it would raise the total amount that subscribers pay for expanded cable packages. Federal law requires cities to regulate basic rates charged by their cable franchisees, the frequency of rate hikes for basic service, installation fees charged by cable providers and ensure rate uniformity. Out From Under Charter Communications is the sole cable provider in Long Beach. Long Beach households: 171,632 Charter subscribers: 75,000 Charter franchise secured: 1997 Satellite penetration: 16.9 percent * Enabling legislation Noun 1. enabling legislation - legislation that gives appropriate officials the authority to implement or enforce the law legislation, statute law - law enacted by a legislative body : Cable Television Act of 1992, an amendment to the Telecommunication Act, allows municipalities to set rules regarding fees for cable, installation and equipment, frequency of rate hikes and uniform rates * Estimate Sources: U.S. Census Bureau, Charter Communications Inc. |
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