The increasing cost to provide broadcast channels
Why are my rates going up?
Local U.S. broadcast TV stations (network affiliates like CBS, NBC, ABC, and Fox) negotiate with cable and satellite providers like Home Telecom for permission to carry their broadcast signals. Over the last several years, these stations have drastically increased rates to distribute their signals to Home Telecom customers. The "Broadcast TV Surcharge" is related to the fees local broadcast stations charge Home Telecom to transmit their free, over-the-air content.
At Home Telecom, we’re committed to providing our members with quality TV programming at a competitive price and we make every effort to minimize costs. In our contract negotiations with cable networks, we work hard to ensure you don’t suffer unfair price increases as a result of unreasonable demands.
If I switch to streaming or a
different provider, can I avoid the increase?
All streaming providers and cable providers negotiate some form of retransmission consent fees with corporate broadcasters. Providers will distribute this charge differently to their consumers whether they charge a separate fee or charge this fee within their retail rate, this is different for each provider. Any of these negotiations could lead to TV stations going off the air or increasing the cost to provide these networks. Therefore, we recommend that you do your research before switching providers because you may still receive an increase in their video service.
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What is
retransmission
consent?
Retransmission Consent refers to a provision of the 1992 United States Cable Television Protection and Competition Act that requires cable operators to obtain permission from broadcast stations to carry their programming. In exchange, broadcast stations may propose that the cable operator pay cash to carry their station. If the cable operator refuses to pay the rates proposed by the station, they may withhold permission for the cable operator to carry their programming. Unlike other cable TV networks, broadcast TV stations distribute their signals over the air, using free spectrum granted to them by the federal government.
In effect, taxpayers subsidize the distribution of broadcast TV signals. The same broadcast TV stations are then allowed by the government to charge cable and satellite operators for their signals. If Home Telecom doesn’t agree to pay the high fees, broadcasters can force us to remove their channels. This is the process known as Retransmission Consent Negotiations. Over the past few years, the owners of broadcast stations have consolidated. This consolidation has provided these ownership groups with even more power to demand higher fees from cable and satellite operators.
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