WASHINGTON — The Federal Communications Commission has opened an investigation into the pricing policies of major cable operators and Verizon Communications.
The agency wants to ensure that the companies’ customers are being treated fairly, FCC Chairman Kevin Martin told The Associated Press.
“I’m certainly concerned with the increasing cable prices that consumers are facing,” Martin said. “They are getting less and being charged the same or more.”
The FCC wrote Oct. 30 to cable operators including Comcast, Time Warner, Cox Communications, Charter Communications, Cablevision Systems, Bright House Networks, Suddenlink Communications, Bend Cable Communications, GCI Co., Harron Entertainment and RCN.
Verizon, which offers pay-television services with FiOS, also was included in the probe.
The agency’s letter questioned the companies’ practice of moving analog channels into digital tiers to free up bandwidth for other uses, such as high-definition channels. Analog customers will have to get a digital set-top box from the operator or buy the digital TV tier to watch those channels.
Cable is competing with satellite-TV and phone companies.
Most cable customers are analog customers, and those who do not wish to upgrade to digital cannot watch the channels that are moved to the digital tier.
The agency also will look into whether cable operators and Verizon are confusing customers by linking the shift of the analog channel to the digital tier to the nation’s transition to digital broadcasts, Martin said.
The two moves are unrelated.
Linking the two in customers’ minds could prompt more people to opt for digital video and cable services because the February digital-TV transition is mandated by the federal government. The FCC has asked companies in the probe to submit information about their pricing practices within two weeks.
Martin said it appears consumers weren’t given “appropriate notice” about the channel changes.
