Boston wins FCC approval to re-regulate Comcast

Following three successive Comcast rate increases and what he said was a lack of competition, Boston Mayor Tom Menino appealed to the FCC to allow the city once again to regulate the cable giant's rates for basic service.

The FCC freed Comcast from regulation back in 2011 based on a determination that there was "effective" cable competition in Boston.

But Boston appealed that ruling. Now the FCC has certified that overbuilder RCN failed to provide significant competition to Comcast, giving Boston the authority to regulate basic cable rates.

Under the 1996 Telecom Act, local franchise authorities can only regulate basic cable rates, but cannot regulate the charges for other cable packages or rental of cable equipment. And, if the FCC rules that there is effective competition, the local authority loses the right to regulate even basic cable service.

Comcast plans to appeal the ruling, although the FCC will not consider new evidence. Instead it granted Comcast 30 days pending a new request from Comcast to once again be freed from regulation as it was 11 years ago.

Regardless, cable rates across the country continue to climb at three times the rate of inflation - or an average of 6.1 percent every year over the past 15 years.

FCC Recertifies Boston to Regulate Comcast Rates (Broadcasting & Cable, Apr. 9, 2012)