U.S. President Barack Obama is expected to weigh in on a proposal that would give consumers more options regarding cable set-top boxes that control the TV channels that they are able to watch.
The Obama administration on April 15 threw its support behind a Federal Communications Commission (FCC) proposal that is meant to prevent cable companies from forcing subscribers to rent TV cable boxes from service providers directly. It is aimed at providing consumers with a choice to buy these devices elsewhere.
Aside from supporting the loosening of cable set-top box leasing practices, the president also signed an executive order instructing other government agencies to adopt similar policies in order to promote more competition.
In a recent interview, Obama said that the industry has a potential to provide consumers with cheaper and more effective services.
If more companies are allowed to participate in the industry, the president said that it could lead to business getting more customers and consumers getting better products at more affordable prices.
Presidential economic advisor Jason Furman explained that the Obama administration doesn't always weigh in on FCC matters, but when it does, it is often about an issue that the president personally views as very important both to consumers and to the American economy.
Tom Wheeler, chairman of the FCC, said that TV subscribers in the United States often pay about $231 every year to rent cable set-top boxes. An analysis of current cable subscription practices revealed that the cost of the cable boxes has nearly tripled since 1994 even though the costs of other electronic media, such as TVs, computers and smartphones, have significantly dropped during the same time.
Furman and his fellow economic adviser Jeff Zients said the situation regarding cable set-top boxes are much like that of telephones in the 1980s where the market was seemingly cordoned off from any form of competition. They said this is something that has to change.
However, a group of cable companies warned that the proposed rule to the FCC could cause prices to shoot up as it removes security protections and doesn't provide people with any reassurance on their privacy rights. It also pointed out that many consumers already watch cable programming using various mobile apps and devices.
