Cable TV and FiOS price probe under way

Is the pricing of TV services fair to consumers? The FCC is launching a probe to find out whether the wallets of home subscribers are getting corralled in the stampede by Verizon and cable providers to HDTV.

Are US consumers being forced to pay for higher-end TV services they don't really want? The Federal Communications Commission is about to examine an emerging practice among cable providers of moving old-fashioned analog TV programming into digital tiers and pricing structures so as to make room for HDTV.

"Ever-increasing cable prices is one of the most significant issues consumers face today. They are getting less and being charged the same or more," Commission Chairman Kevin Martin said at an FCC meeting on Tuesday.

Some 50 percent of all cable TV subscribers have only been signing in for services in the less expensive "analog tiers." But cable providers are now moving old-fashioned analog programming into digital tiers, forcing people to either subscribe to pricier services, rent a digital set-top box. or use an adapter, according to FCC officials.

The agency is particularly interested in exploring whether cable providers are fooling people into thinking that these changes in their own service offerings are related to the government-mandated transition to all digital broadcasts in February of 2009. There's no connection between the two, officials say.

After receiving complaints from TV subscribers and the Consumers Union advocacy group about TV pricing and "channel switching," the FCC sent out a letter on Oct. 30 to eleven major cable providers, along with Verizon, giving the companies two weeks to respond.

Although Verizon offers TV broadcasts only over its digital FiOS network, the company simulcast both analog and digital transmissions for a while, so customers could watch programs on both analog and digitally enabled TVs. But in October, Verizon reportedly ended its analog transmissions.

Some cable providers report that they're now providing digital adapters to customers free of charge.

"Digital delivers better service, clearer pictures and additional choices, which is why more than 89% of our cable customers receive [digital] TV," cable provider Cablevision said in a statement.

Meanwhile, though, cable providers, FiOS, and satellite services are vying hard with each other to offer lots of HDTV channels.

Also during the month of October, various FCC commissioners visited a number of US cities to explain the upcoming transition to all digital broadcasts on a series of "DTV Outreach" tours.

Aside from Verizon and Cablevision, the recipients of the FCC's letter included Comcast, Charter Communications, Cox, Bright House Networks, GCI, RCN Corp., Suddenlink, Bend Cable Coomunications, Time Warner, and Harron Entertainment.