FCC recommends action against several cable operators for malpractices

Outgoing Republican Communications Commission chairman Kevin Martin has announced an investigation into Comcast Corp's operations. The company was allegedly deliberately degrading its rivals' internet phone services.

Martin also suggested that fines in excess of $500, 000 be levied against several cable companies for unwillingness to coopetate with the commission into malpractices investigations.

However, with the Democratic administration taking over, chances of Martin's proposals being acted upon may be slim.

Consumer groups have been raising concerns about Comcast giving preferential treatment to its digital voice internet phone service over competing internet telephone services. Consumers reported degraded quality when using rival internet services.

This fall, several consumer groups including Consumer Union asked Congress to investigate the companies for price gouging.

Digital cable service requires consumers to have a digital cable box which is charged a monthly fee. Digital cable service therfore costs more than analog service.

Comcast, along with Time Warner Cable Inc and Cablevision Systems Corp was among those hit with the proposed fines for failing to provide enough information.

The agency was conducting investigations into whether cable companies were improperly moving channels from analog to digital tiers thereby leaving the analog customers without access to those channels and without lowering the analog subscribers' monthly bills.

While it is not clear what action the new administration will take it is understood fines levied range from $7,500 to $25,000 each. These have to paid in full by the cable companies in 30 days or file a written statement seeking reduction or cancellation of the fine.

Charter and Suddenlink have been charged $25,000 each.

According to Suddenlink, the FCC has not fined it because as it could still challenge the notice of apparent liability (NAL) it received. A company spokesman said they had responded fully with the FCC's request.