Cable companies pass through certain costs of doing business directly to their customers.  The Franchise Fee recoups the rent companies’ pay for using public rights of way to deliver service.  The amount varies from 5% to 6% of the cable bill and is capped at that amount by federal law.

Cable companies pass through the cost to retransmit local broadcast channels by itemizing a portion of the cost as a “Broadcast TV Fee.”  By federal law, cable companies are required to offer local broadcast television stations, but they are not required to itemize the cost on bills.   

Like the “Broadcast TV Fee cable companies use the “Regional Sports Fee” to pass through a portion of the cost of sports channels.  This only applies to packages that carry sports channels.  There is no regulation requiring cable companies to itemize this cost.

Cable companies use these fees to recoup a portion of their cost for broadcast and sports channels.  As those cost increase, the cable companies increase the fees.  Cable companies claim itemizing these fees is a way to be more transparent with customers about the factors that drive price changes.  While the fees do provide transparency, they also provide a loophole for cable companies to be able to advertise rates lower than what customers actually pay and raise rates on customers under contract.  Some states have filed lawsuits against cable companies to protect customers from this practice and MACC has petitioned the Oregon Attorney General to protect Oregon customers and take action against this practice.