As program suppliers, companies can raise costs which result in higher charges for their cable subsidiaries offering the programming. Costs are recouped immediately since they improve their profit margins on both the programming and delivery sides of the business. Because current federal regulations permit them to pass on increased costs to subscriber rates, they have been raising them almost at will in Delaware in the absence of competition. These increases are permitted within a formula established in Washington, and cannot be challenged or denied by the Delaware Public Service Commission. In spite of customer complaints, rate increases are automatic, with no recourse other than service cancellation.
Cable operators continue to claim that competition exists from the dish people.
Unfortunately, federal regulations do not permit dish operators to provide channels for network TV stations. In Delaware, dish subscribers were able to receive TV network programs but only through stations in New York, Chicago and other distant places. Local programming for news and state issues were only available using rabbit ears, or in Kent and Sussex counties, expensive and ugly roof antennas. The fine print in the dish contract also protected local cable operators by not even providing distant network channels if local TV station reception was possible with antennas. As of March 31, cable has now been re-deregulated and can charge whatever the public will bear.