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Retransmission Info

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NCTC complies with all FCC rules for TV channel/programming retransmission guidelines. While this subject is defined mostly in terms of engineering and broadcast of TV signals and from the programmers of networks, the regulations effect what customers watch on TV and what fees can be charged to NCTC by programmers.

As we work to provide the most popular programs possible and for the best customer rates, there be new charges that NCTC will be required to pay to air broadband stations, such as those that air ABC, NBC, CBS and FOX programming. All network carriers in the country are faced with these rules in providing TV channels/programs.

We want our customers to be aware of this ongoing issue as it likely will impact NCTC TV rates in the future.

Answers To Your Questions, From the American Cable Association (ACA):

What is Retransmission Consent? The U.S. Congress has authorized broadcast stations, such as those that air ABC, NBC, CBS, and FOX programming, to grant or deny permission (provide “consent”) for a cable television operator to “retransmit” the signal to its customers. In order to acquire consent the owner of the television station will demand some form of compensation from the cable operator, which is typically re-negotiated every three years.

Frequently, a broadcaster demands the smaller cable operators pay an exceptionally higher per-customer fee than other larger operators in the same market. Broadcasters charge smaller cable operators retransmission consent fees as much as twenty times more than what the largest distributors pay. There is no justification for the price discrimination faced by small cable operator because the retransmission is costless for the broadcast station owner. The burden to a broadcaster of having its signal carried on a large system or a small one is identical.

Cable operators who refuse to accept the higher charge (as it frequently would result in higher rates for customers) face retaliation from the broadcaster – a dropped signal and the refusal to allow a cable operator to deliver its programming to customers.

Making matters worse, federal rules and regulations hinder small cable operators serving small and rural markets to offer broadcast signals from neighboring television markets, even when the neighboring broadcast is willing to offer the same network programming at a more reasonable rate.

How Does Retransmission Consent Harm Consumers? When independent cable operators are dealt disproportionally higher per-subscriber fees to broadcast a signal, the result is increased costs for consumers and reduced competition by undercutting smaller companies’ ability to compete on price. Notably, independent cable providers often have to redirect investment that should go towards increasing system capacity and improving infrastructure for broadband to instead line the pockets of big broadcasters and programmers, putting already underserved markets even further behind the Digital Divide.

What is being done about this issue? Currently, the FCC is reviewing whether revisions to the wholesale cable programming and retransmission consent rules would provide consumers with more choice and value. The industry has presented the FCC with multiple filings to demonstrate how the current marketplace harms both independent cable operators as well as consumers. In addition, NCTC and others in the industry are supporting a “quiet period” between broadcasters and cable operators during the coming round of retransmission consent negotiations.

Watch this page of our website as more developments occur.