Cablecos Fined for Moving Channels to Switched Digital

The FCC has found that Cox Communications Inc. and Time Warner Cable Inc. (TWC) “apparently willfully violated” its rules by moving certain channels on specific cable systems to switched digital video (SDV) platforms, making them inaccessible to some customers.

As a result, the agency has fined the operators thousands of dollars. Time Warner Cable Oceanic was tagged for the action in its two Hawaii systems and Cox for the action in its Fairfax County, Va. system.

The FCC move stems from investigations into written complaints from customers about moving channels to SDV platforms. These platforms hold allure for some cablecos because they enable them to more efficiently provide offerings such as high-definition (HD) programming, easing demands on often capacity-challenged systems.

Part of the issue is that the channel change prevented certain customers with CableCARD-equipped devices from continuing to access the channels, according to the FCC.

“We conclude, pursuant to Section 503(b) of the Communications Act of 1934, as amended, that Cox is apparently liable for a forfeiture in the amount $20,000,” said the FCC in its notice. The agency also says it requires the cableco to “make appropriate refund of fees charged to customers affected by Cox’s movement of linear channels to the SDV platform on October 16, 2007.”

The FCC initially acted on the TWC case in late August.

Cox said in a statement it disagrees with the FCC's ruling and "will defend our use of switched-digital technology in responding to the Notice of Apparent Liability. Our deployment of switched-digital to maximize the power of our broadband network has greatly benefited our Northern Virginia customers, where we've introduced more than 50 new channels – including 24 high-definition offerings – enabled by this technology."

TWC was not immediately available for comment.

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