REGULATION OF RATES FOR CABLE TELEVISION SERVICES

 The Telecommunications Act of 1996 passed by Congress and signed by the President on February 8, 1996 contained a variety of changes for federal, state, and local regulators. An explanation of some issues which many subscribers have asked about follows.

A. Basic service tier, equipment, and installation charges

As the local franchising authority, Montgomery County Maryland retains the authority to review and approve changes to the Maximum Permitted Rates (MPR) requested by Comcast of Montgomery for these services as long as Comcast is not subject to "effective competition", as defined in federal law (FCC ¶ 76.905).  Comcast may choose to charge less than the MPR.

Services provided by Starpower are not subject to any County rate regulation.

Review of Comcast's requested Maximum Permitted Rates is limited to analyzing annual filings to see if the data provided as justification conforms to criteria established by the Federal Communications Commission. These criteria, in general, permit review of changes in costs to the provider of such items as the cost of Basic tier channels, the number of Basic channels, inflation, costs associated with subscriber equipment, and costs to perform certain technician tasks.

At the conclusion of the County's review, an Order setting the Maximum Permitted Rates is issued by the County Executive.

Copies of some Comcast rate filings and County issued Rate Orders are available for public review at the County's Regional Libraries. 

B. Cable programming service (CPS) tier

Prior to April 1999, rate increases in the CPS (or Preferred service tier) were reviewed by the FCC upon complaint. Pursuant to federal law, this review ended in March 1999.

C. Premium, Pay Per View, Digital, and Internet services

These services are not subject to any rate regulation.

February 2004