Comcast rate hike prompts Boston mayor to renew calls for rate regulation

In response to a rate hike earlier this week from Comcast (Nasdaq: CMCSA), Boston Mayor Thomas Menino is pushing the FCC to give the city the power to regulate pricing for the subscription packages the cable MSO sells in Beantown.

Menino

Menino, who had filed an FCC petition last year, complains that Comcast's cable rates have increased by more than 80 percent since a price-control agreement the city had negotiated with Comcast predecessor AT&T Broadband expired in 2008. Comcast plans to raise the prices in Boston for its basic-cable programming packages this year by 4.9 percent to $16.58 monthly.

Comcast competes with overbuilder RCN in Boston. That company charges $17.50 monthly for basic cable. While Verizon (NYSE: VZ) sells FiOS TV in the Boston suburbs, it has halted construction nationwide on its FiOS buildout, and doesn't plan to enter the city.

Cable rates in Boston have been deregulated since 2001, when the FCC found that that there was effective competition in the market. In response to Menino's petition last year, Comcast argued in an FCC filing that competition from RCN, DirecTV (Nasdaq: DTV) and Dish Network (Nasdaq: DISH) make Boston a highly competitive market.

Comcast's battle with Menino is noteworthy, considering Boston will host The Cable Show convention in May. Last year, the National Cable & Telecommunications Association invited Chicago Mayor Rahm Emanuel to speak at the opening general session at the cable industry's largest convention. It's doubtful that NCTA will roll out the red carpet for Menino. Comcast Cable Communications CEO Neil Smit is the co-chair of this year's convention.

For more:
- Boston.com has this article

Related articles:
Comcast, Turner execs to run The Cable Show convention in Boston
Comcast offering one-hour appointment windows in Boston area
Comcast raises rates nearly 5% in Oregon, Washington
Sen. Kerry steps into Comcast - Boston Brouhaha
Boston mayor petitions FCC to regulate cable rates