Wouldn t it be more cost effective and easier for the City to renegotiate its franchise with AT&T-Comcast, require them to provide better service and establish controls on their fees?
No. The authority for cities to control fees is limited by regulations. There are some customer service standards for cable companies; however, these represent minimum standards. Non-compliance with customer service standards can only be addressed through a lengthy bureaucratic process. The following discussion provides more specific information about cable regulation. The Telecommunications Act of 1996 promised competition in local telephone markets and cable TV services. More competition would typically mean tempering the rise in cable rates and stimulating private investment in deploying broadband. According to an FCC report, though, cable television rates in 2001 rose at more than twice the rate of inflation. This was due largely to a rash of industry consolidations and mergers. When a few companies dominate a specialized market, providers adopt similar strategies. Either they offer an inferior product at suppressed prices (to discourage rivals from entering the market), or they pr
