Kerry asks FCC to review Boston cable TV rates

Globe Staff

US Senator John Kerry, a Massachusetts Democrat, is asking the Federal Communications Commission to deliver a report on cable-TV rate changes in Boston and other Bay State communities.

Kerry's request to the FCC comes after Boston Mayor Thomas M. Menino filed a petition asking the FCC to give the city control over the price of basic cable service in Boston. According to Menino's petition, the majority of the city's cable TV subscribers are "unprotected from Comcast’s market power.’’

Comcast Corp. has 170,000 customers in Boston. Other companies providing TV services in Boston, such as RCN Telecom Services LLC, have far fewer.

The FCC allows communities to regulate basic TV rates if there is little competition to help keep prices low. In 2002, Boston was stripped of the power to regulate basic cable rates after a determination that Boston was a competitive market.

Menino argues that Boston is no longer a competitive market and that the city should again have the authority to regulate basic cable rates.

Comcast counters that its rates are fair and that the Boston market is highly competitive due to the presence of RCN and satellite TV services.

“Comcast’s basic service in Boston continues to be nearly half the cost of any other provider’s entry level service,’’ the company said in a statement that was part of a story on the issue in this morning's Globe.

Kerry chairs a Senate subcommittee on Communications, Technology, and the Internet.

In his letter to the FCC, which his office released today, Kerry wrote, “I hope to ascertain whether rate hikes are specific to Boston or systemic, if the hikes are justified, and what the factors are that can effectively check those rate hikes.”

In its statement, Comcast said: "Comcast faces a highly competitive environment across all its product lines, with significant video competition from numerous providers including satellite, RCN, free broadcast and other types of video options. Comcast's Basic service in Boston continues to be nearly half the cost of any other provider's entry level service - and no other competitor offers a comparable level of service comprised of more than
35 channels of news, information, diversity and public access programming. We believe we continue to offer the most affordable options and best values for consumers. Comcast continues to invest in the City of Boston with next-generation technology for residential customers and businesses alike, and last year alone, invested more than $4.9 million in the City of Boston through foundation grants and in-kind services."