Wheeler says it's ridiculous — and overly expensive — that most customers are forced into paying monthly fees to rent decoding boxes from their cable or satellite company in order to watch programming. That why the FCC last week announced a proposal that, in effect, will break the near-monopoly enjoyed by cable and satellite companies, making it possible for consumers to purchase or rent decoding boxes from third-party vendors.
"Lack of competition has meant few choices and high prices for consumers," Wheeler said in a statement. In a post on the technology news site Recode, he wrote, "It's time to unlock the set-top box market — let's let innovators create, and then let the consumers choose."
As you might expect, technology companies, like Google, Apple and Amazon, cheered the proposal, which will be voted on Feb. 19. The cable industry, perfectly happy with a very profitable near-monopoly, is not so happy.
Which makes sense given the typical American household pays $231 per year renting decoding boxes from cable companies, according to a study last year by the U.S. Senate. Brace yourself, but that adds up to a $19.5 billion revenue stream for cable companies. Think about it: Almost $20 billion a year rolls into the coffers of Cox Communications and other cable companies for doing nothing more than renting boxes that make it possible to view paid programming and supposedly free high-definition TV.