Gov't Now Says Consumers Buying Cable TV By Channels Could Be More Beneficial


Federal Communications Chairman Kevin Martin, whose term expires in June, raised eyebrows across the nation today when a Wall Street Journal report said he would take on the cable indstry's pricing practices. According to the paper, Martin would tell a Senate panel today that selling cable television by channel rather than in bundles "could be economically feasible and in consumers' best interests".

Known as a la carte pricing, the methodology is rejected by the National Cable and Telecommunications Association. That trade group's web site states, "In November of 2004, the FCC issued a report that found that “government intervention through a la carte regulation likely will hurt MPVDs (multichannel video programming distributors), program networks, and especially MVPD subscribers.” This report followed on the Government Accountability Office findings in 2003 that a la carte could result in higher prices for fewer channels."

Martin's comments do apparently contradict those studies, including the one led by then-chairman Powell in 2004. The FCC does not have authority to mandate pricing and can only advise in such matters.

posted by Consumer Help Web Editorial Team at 1:31 PM |