FCC Adjusts Regulated Cable Rates

Rate-regulated cable services can boost their non-external cost base for basic rates by 1.42%. That is the latest inflation adjustment announced by the Federal Communications Commission for those filing their rate forms, based on changes from July 1, 2016 to Sept. 30, 2016. The increase for April-June was 2.3%.

Local franchise authorities can, but are not required to, regulate basic rates where there is a lack of effective competition. The price (of the non-external cost portion of rates) is adjusted quarterly based on changes in the GNP price index published by the State Department's Bureau of Economic analysis. Pay-TV providers are allowed to pass though external costs, like program price increases, but those can be reviewed by the local franchise authority (LFA), which is the one doing the rate regulating rather than the FCC. It will be the 85th such quarterly adjustment since the FCC started releasing them.