This Associated Press article declares that cable companies will charge customers more for set-top receivers because of the FCC’s new rules requiring video providers to deploy receivers containing separable security (i.e., detachable CableCARDS), as opposed to the current embedded security. The article declares the increases due to the new FCC rules are a sure thing (“Higher rates are definitely coming,” it proclaimed). At Cox, we will fully comply with the FCC separable security mandate and we have no plans at this time to raise prices on receivers due to the mandate. However, increasing costs may be passed on to customers in the future due to the cost of compliance.

Also in the article, several cable players criticized the FCC’s decision late last week, just before the July 1 effective date, to deny Cable’s petition for an exemption, but granting a temporary exemption to Verizon and other video providers. The National Cable & Telecommunications Association (NCTA) said in a statement: “The Commission’s 11th-hour action on the many long-standing waiver requests doesn’t bode well for consumers. There’s nothing in these decisions to stave off a $600 million set-top box tax likely to affect the great majority of cable customers while providing no benefit to consumers. In addition, customers are being treated differently based on the provider to which they subscribe, the unfortunate outcome of a flawed process.”