Ajit Pai’s new gift to cable companies would kill local fees and rules

Ajit Pai’s new gift to cable companies would kill local fees and rules

Enlarge / FCC Chairman Ajit Pai speaking at a press conference on October 1, 2018, in Washington DC. (credit: Getty Images | Mark Wilson )

Ajit Pai is continuing his multi-year battle against local broadband regulation with a plan that would stop cities and towns from using their authority over cable TV networks to regulate Internet access.

Chairman Pai’s proposal, scheduled for a vote at the Federal Communications Commission’s August 1 meeting, would also limit the fees that municipalities can charge cable companies. Cable industry lobbyists have urged the FCC to stop cities and towns from assessing fees on the revenue cable companies make from broadband.

If approved, Pai’s proposal would “Prohibit LFAs [local franchising authorities] from using their video franchising authority to regulate most non-cable services, including broadband Internet service, offered over cable systems by incumbent cable operators.” Pai’s proposal complains that “some states and localities are

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Comcast usage soars 34% to 200GB a month, pushing users closer to data cap

Cable companies can save money now that DOCSIS 3.1 upgrade is mostly done

Enlarge / A Comcast van in Sunnyvale, California, in November 2018. (credit: Getty Images | Andrei Stanescu)

Cable-company spending on network equipment is dropping as major providers like Comcast and Charter finish up their nationwide DOCSIS 3.1 rollouts.

Equipment vendors that sell to cable companies such as Arris/CommScope and Casa Systems are reporting drops in cable-related revenue. Light Reading detailed the situation this week:

Total cable access network-related revenues plummeted 38 percent in Q1 2019, to $275 million, versus the year-ago period, driven by a “strong slowdown” on capacity purchases by MSOs and an ongoing delay in deployments of new distributed access architectures, according to new data from Dell’Oro.

Cable access network spending is known to be lumpy, “but not to this extreme,” said Jeff Heynen, Dell’Oro’s research director, broadband access and home networking. He said he doesn’t recall seeing revenues in this segment of the market reach drop

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