Who Regulates Cable Companies?

Cable companies are often criticized for high rates. There is a regulation on what cable companies can charge, but only to a limited degree. The Federal Communications Commission (FCC) has created local regulating bodies known as local franchise authorities (LFAs), and these boards are responsible for rates in any given geographical area.

LFA

The LFA is an agent under the Federal Communications Commission, a national agency that regulates communication such as telephone and cable companies. The LFA can be any governmental organization authorized by the FCC. This can include states, cities, counties, or other municipal authorities. The LFA has the authority to control what the cable companies can charge customers for their service to local, educational and government stations. This is referred to as a “basic tier” type of coverage and is the least expensive. The FCC oversees any rules and regulations set in place by the LFA. They check that basic cable rates are reasonable, and that any rate increases are justified.

Not regulated

Any channels above basic service are not regulated. This includes premium channels, customer service fees, franchise fees and installation costs.

Laws and guidelines

The 1992 Cable Act allows local and state authorities to select the cable provider for any area and regulate the franchisee. The law also allows local authorities to regulate the construction of the cable systems within city boundaries. The Cable Act provided minimum standards regarding customer service and billing practices. The rules pertain to installation, free phone calls for customer service, and specific information cable companies must provide to customers.