FCC Is Investigating Cable Firms for Rates Violations

The Federal Communications Commission said Wednesday that it has sent letters of inquiry “with investigatory overtones” to 16 cable TV operators regarding possible rate violations.

The letters identify practices of some cable operators that may violate FCC rate regulations. They seek information to allow the commission to assess whether violations have occurred, the agency said.

The letters were sent in response to informal complaint letters the commission has received regarding rate and service restructuring by cable companies.

The letters identify practices that may violate rules, including rate changes that violate the current freeze on cable rates, repackaging of regulated services as a la carte services not subject to regulation, as well as offerings that may violate the agency’s ban on “negative option billing.”

The results of the probe “could be used to support enforcement actions” if appropriate, the agency said.

“I am concerned that the practices that are the subject of our investigation reflect a propensity by cable operators to push the limits of our rules,” FCC interim Chairman James Quello said.

Among the companies sent letters are Tele-Communications Inc., California’s largest cable operator; Crown Cable of Alhambra; Comcast Cablevision Inc. of Tallahassee, Fla.; Comcast Cable of Howard County, Md.; Metrovision in Landover, Md.; Triax Cablevision in Waseca, Minn.; Cable Satellite of South Miami, Multivision Cable TV of Lanham, Md., and C-TEC Cable Systems of Dallas, Pa.

Also receiving letters were North Central Cable Communications Corp. of Roseville, Minn.; Coldwater Cablevision in Michigan; Allegan County Cablevision of Allegan, Mich.; Cablevision of Raleigh, N.C.; Cablevision of Boston; US Cable of Waukegan, Ill., and Warner Cable Communications of Milwaukee.