Telecompetitor Arches

Cable Rates Will Rise from FCC STB Mandate

It didn’t take long for cable rate hike discussions to begin, following the FCC July 1st deadline for , officially called Commercial Availability of Bidirectional Navigation Devices. Now cable MSOs are saying this mandate could cause cable bills to rise $2 to $3 per month. Comcast has committed to spread the cost across all subscribers, while other MSOs are debating whether to only spread the cost among new subscribers who’s STB’s will fall under this new mandate.

The presence of IPTV and DBS competitors is probably working to keep these rate hikes somewhat in check. Cable MSOs know they can’t get over zealous in trying to capitalize on this new policy. They have been accused of doing just that in the past, prior to the days of facing formidable competitors.

Read this USA Today story for more details.

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