FCC Deletes, Modernizes, Streamlines Cable Rate Regulation

At today's Commission open meeting, Chairman Brendan Carr's IN RE: DELETE, DELETE, DELETE initiative bore fruit when the agency adopted a Report and Order providing the cable industry with long-overdue relief on the rate regulation front. As long as Section 623 of the Communications Act remains on the books (see below for more on that), the rate a cable operator not facing "effective competition" – essentially a null set, legally speaking, since 2017 –charges for the Basic Service Tier (BST) remains subject to regulation. This item, (circulated version available here), however, "will remove from … regulations approximately 27 pages, 11,475 words, 77 rules or requirements, and 8 forms."

The Report and Order deregulates most cable equipment, exempts smaller systems, and declines to extend its rules to commercial establishments. It also modernizes and streamlines those rules that remain in place, primarily to reflect the sunset, over 25 years ago, of tier regulation beyond that of the BST – that is, the tier (1) upon which local broadcast television stations and public, educational, and government access (PEG) channels must be carried, and (2) to which rate regulation in theory still applies.

In practice, of course, given the ubiquitous presence nationwide of "effective competition" from direct broadcast satellite (DBS) operators, telco TV providers, and virtual multichannel video programming distributors (vMVPDs), rate regulation of the BST no longer occurs. As the item notes, the Commission itself is "unaware of any local communities that are actively regulating cable rates at this time."

In a June 5, 2025, post to the FSF Blog, Free State Foundation President Randolph May described this undertaking broadly as "a meaningful regulatory reform accomplishment" and referenced the following language from our comments: "what primarily stands in the way of unbridled, consumer-benefitting competition are ill-fitting rules that hamstring the subset of participants to which they uniquely apply." The Report and Order, the goal of which is to "unleash prosperity through deregulation," is significant step in the right direction.

Speaking of deregulation, according to Law360 (subscription required), earlier this week House Energy and Commerce Committee Chairman Brett Guthrie (R-KY) stated that "'it's time to have a real conversation and update the 1992 Cable Act.'" Consistent with the position for which I (as well as others associated with the Free State Foundation) long have advocated, most recently in "Deregulation Is the Cure for the Video Regulatory Disparity," a June 9 post to the FSF Blog, Chairman Guthrie indicated that he opposes calls to extend legacy MVPD regulation to virtual alternatives: "'I fear that imposing additional regulation on this industry rather than relieving burdens on others would slow down innovation rather than encourage it.'"

President Trump Holds White House Meeting to Discuss EchoStar and FCC Review

News outlets have reported that President Donald Trump held a meeting at the White House with EchoStar Chairman Charlie Ergen and FCC Chairman Brendan Carr on June 12. Although we do not know for certain what was discussed at the White House meeting, it is a supremely safe bet that the conversation included the FCC's current review of EchoStar's compliance with deadlines for reaching wireless facilities construction milestones. Reports indicate the President rightly hopes to prevent a scenario in which a major U.S. company goes bankrupt. 

EchoStar previously acquired wireless spectrum licenses in conjunction with the T-Mobile/Sprint merger and settlement with the U.S. Department of Justice. It has invested billions in private capital to build out a nationwide 5G wireless network, which is available to 80% of Americans. EchoStar's network offers a fourth competitive nationwide facilities-based mobile wireless service, and its network is unique for its deployment of Open Radio Access Network (Open RAN) technology. 

 

Free State Foundation President Randolph May and I expressed our views regarding the FCC's review of EchoStar's compliance with buildout commitments in reply comments filed on June 6.

FCC Approves Verizon/Frontier Merger

Today, May 16, the FCC approved the Verizon/Frontier merger. The Commission's order approving the transaction stated: "Overall, we find that there are no potential transaction-related public interest harms and that there are some likely publicinterest benefits from this Transaction." As the agency's order explained: "[W]e conclude that Verizon is more likely to invest in and improve service quality in the Transaction market areas than Frontier would absent the Transaction. While the record indicates that Frontier has deployed fiber, no commenter disputes that it does not have funding in place for enhanced investment and additional fiber buildouts." The FCC's approval of Verizon's acquisition of Frontier means that fiber will reach more Americans – sooner.

 In an April 2 blog post, I noted that objections raised by public commenters in the Verizon/Frontier proceeding regarding IP interconnection, transitioning from legacy networks technologies to newer technologies failed to identify actual or potential harms arising from the transaction. Thus, I wrote that the Commission should not consider those matters as grounds for withholding approval of the transaction. The FCC essentially agreed with this view. The Commission's order characterized those same matters as not transaction-specific.

Credit is due to Chairman Brendan Carr and to staff in the Commission's bureaus who were involved in the review proceeding and prepared the Verizon/Frontier Order. Congratulations also are due to Verizon and Frontier. Hopefully, the consummation of the merger will accelerate fiber broadband deployment to Americans across the country. 

Also, the order stated the Commission accepts Verizon's commitment to reform its internal practices, and that the agency "expect[s] that these changes will prevent DEI discrimination in the post-transaction company, as consistent with the law and the public interest."

On the merits, approval of Verizon/Frontier is an easy call. Even so, the FCC's decision was right – and it was reached without excessive complications or undue delays. The Commission completed its review of Verizon/Frontier on day 189, just 9 days above the agency's informal shot clock.