Cable Broadband Rate Regulation Unlikely -- for Now, S&P Says

Broadband rate regulation isn't a pressing cable threat, although odds are the FCC will reclassify cable operators as common carriers, S&P told investors Tuesday. It noted the lengthy process of drafting an order, the likely appeal and the ability of a future FCC administration to again reverse things. The debt ratings firm said (login required) the FCC likely also will focus more on increasing broadband accessibility and affordability through consumer subsidies, while price regulation could discourage network investments. Longer term, as cable penetration rates increase, operators could come under heavier regulatory scrutiny and face more possibility of rate regulation, it said.