Comcast continues its quest for relief from regulations.Comcast Corp. has joined the stampede of cable providers in 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, seeking to escape municipal price controls--an effort that the city of Los Angeles
Comcast, which has 250,000 subscribers in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , has petitioned 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. for relief from local price controls in 42 California communities, including L.A. The company asserts that competition from satellite broadcasters renders the municipal regulations obsolete. Industry analysts say the number of cable companies seeking regulatory relief is increasing sharply as satellite companies win larger chunks of the television market, although 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. officials are unable to say how many petitions they have received. "These (petitions for deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. ) are flying off the attorneys' desks as fast as the attorneys can draft them," said Jonathan Kramer, president of Kramer.Firm Inc., a cable television consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a that represents municipalities, including Burbank and Redondo Beach Redondo Beach (rĭdŏn`dō), city (1990 pop. 60,167), Los Angeles co., S Calif., on the Pacific Ocean; inc. 1892. Once a commercial port for Los Angeles, it is a residential and resort city with a protected harbor and an excellent marina. . In order to be lifted from price controls in a service area, a cable company must demonstrate that satellite or other multi-channel services handle more than 15 percent of households, or that the cable company services fewer than 30 percent of households. Comcast is the largest of the four cable companies in Los Angeles, with customers in the Sunland, Tujunga, Sylmar, Hollywood, Wilshire, Westchester and Wilmington areas. The other major operators are Time Warner Cable This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. Inc. and Adelphia Communications Corp., which have not submitted similar petitions. 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. Corp., which services a sliver of Pacific Palisades Palisades, cliffs along the west bank of the Hudson River, NE N.J. and SE N.Y., extending from N of Jersey City, N.J., to the vicinity of Piermont, N.Y., with a general altitude of from 350 ft to 550 ft (107–168 m). and Long Beach, is seeking deregulation. Nationwide, the FCC reports a backlog of 200 such requests, but does not maintain a record of those that have already been granted or denied. The city of Los Angeles has signaled its opposition to Comcast's petition, saying the cable company relies on public right-of-way and that satellite still has not diminished the near-monopoly that cable enjoys in many areas. "We need to maintain our rights as a franchisor," said Los Angeles Deputy Mayor Doane Liu. "We made these agreements with franchisees many years ago and we expect them to live up to their franchise agreements." Comcast, like other cable companies, argues that the surging popularity of satellite pro-viders, such as DirecTV Group Inc. and EchoStar Communications Corp., makes price controls unnecessary, with more than 50 percent of its Los Angeles customers now having access to a competing service. "What we're doing is making it more competitive. We're asking (the FCC) to review the competitive situation--do we meet their standard?" said Comcast spokeswoman Patricia Rockenwagner. Comcast contends that the end of city price controls wouldn't necessarily spell higher rates because the company recognizes its customers have other options. Comcast's basic cable costs $10.87 in Los Angeles, which is less than many other Southern California municipalities. In Corona, the charge is $14.99 for Comcast's basic service. However, cities have argued that the petition for regulatory relief is nothing more than a disingenuous move to raise prices once the controls are lifted. "The cable industry has a rich history of raising rates far beyond the rate of inflation," Kramer said. Michael Friedman, vice president of Telecommunications Management Corp., a Los Angeles-based consulting firm also representing municipalities, said the reasons for deregulation go beyond rate controls. Regulated cable companies are subject to paperwork and administrative burdens that don't apply to unregulated service. "Satellite has been very effective and because of that, more cable companies think they should be exempt," he said. This is not the first time Los Angeles has faced requests for deregulation. Buenavision Cable, Adelphia's predecessor, sought to opt out of its agreement in 1997 in the Boyle Heights area, while Media One, Comcast's predecessor, sought deregulation in 1994 in South Los Angeles South Los Angeles is the official name for a large geographic and cultural area lying to the southwest and southeast of downtown Los Angeles, California. The area was formerly called South Central Los Angeles, and is still sometimes called South Central. . The city did not oppose those requests at the time. The FCC granted the petitions. Officials now with the city's Information Technology Agency say they are unsure why those past requests were not opposed. Earlier this year, Charter petitioned the FCC for relief from Long Beach's price controls. Officials in Long Beach, which has 75,000 Charter customers, said they would oppose the company's bid. Charter subscribers in Long Beach pay $16.60 a month for basic service. Charter has called the petition "housekeeping, and denied that it intends to raise rates. The FCC has not ruled on the Long Beach petition or many others that were filed this year. "We treat these all as individual cases with specific circumstances," said FCC spokeswoman Rebecca Fisher, who was unsure when the commission will take up Comcast's petition. |
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