Ronald J. Dubois Sr.
May 19, 2008
Edna Besson
May 21, 2008Charter Communications, which has the cable franchise for parts of Lafourche, Terrebonne and St. Mary parishes, has petitioned the Federal Communications Com-mission to eliminate Terrebonne Parish’s power to regulate basic cable service rates, said Tom Bourg, parish utilities director.
Federal law gives local governments the authority to regulate the rates for basic cable – channels one through 12 for Charter Communications and includes the major over-the-air networks and local government channels.
Since 1999, the prices charged by cable companies for expanded cable programming (channels 13-72 on Charter, making up most of the company’s cable television offerings) have not been regulated by government.
However, cable companies can eliminate local government regulation of the basic tier if they face competition to provide services.
Charter is claiming the company is experiencing competition from satellite television.
“If they can show competition exists, they can relieve you of your authority,” Bourg told the Terrebonne Parish Council’s Public Services Committee at its meeting on May 12.
Bourg said Charter and Comcast, which have the cable franchise for parts of Terrebonne Parish, are not charging excessive rates for basic cable television.
“Comcast and Charter have not revisited their (rates) for a long time,” he told the committee. “We are satisfied that this basic tier rate is below the FCC threshold.”
Terrebonne Parish signed a 15-year contract with Comcast to provide cable television service.
Bourg also said AT&T has asked the Federal Communications Commission to eliminate local government regulation of cable television rates altogether in Louisiana and place the regulatory authority with state government.
Under federal law, cable companies have to be franchised by government.
Local governments can charge cable companies a franchise fee of up to 5 percent of companies’ gross revenue.
The law allows cable companies to pass along the charge for the franchise fee to customers, but the charge must be listed separately on cable bills.
Also under federal law, cable companies must set aside channels in their basic tier line-up for government and educational channels at the request of local governments.