FCC Opens Investigation Into Cable TV Pricing

The Federal Communications Commission is investigating why some cable-television subscribers are paying the same amount of money even as they are losing channels. The Commission recently sent letters of inquiry to 11 cable companies and Verizon asking about pricing and changes they have made to their tiers of service, including details about channels that have been moved to digital service. Some consumers are complaining that they are getting fewer channels now on their analog cable service, as cable companies move channels to more-expensive, digital tiers. Once a channel is moved to a digital tier, it is unavailable to analog customers, who still make up about 40% of cable subscribers. Agency officials said the investigation stems from concerns that cable companies could be trying to use the transition to digital-only television broadcasts in February to lure their subscribers to move to these more-expensive digital tiers. Cable subscribers don't have to do anything to prepare for the digital transition, because that will affect only consumers who rely on TV sets using antennas. Cable subscribers aren't required to upgrade to digital tiers of service, either.