Cable and broadband video markets are in a period of transition. Until recently, video services were franchised by local municipalities. Some rates, such as basic cable rates, have been regulated, and the municipality had to review and approve increases.
Three years ago, the Texas legislature took franchise authority away from local municipalities, grandfathering existing franchise contracts until the end of their term.
At the same time, many of the incumbent cable video providers have been petitioning the FCC to determine there is "effective competition" in their service areas. That determination would release a locally franchised video provider from rate regulation.
Last March, the FCC returned a determination that there is "effective competition" in the Austin video market. This means that Time Warner Austin, even though it still has to operate under its franchise agreement with the City, was now released of the regulation of its rates.
Time Warner responded by imposing a massive rate increase. The cost of basic cable service was nearly doubled, from $10.50 to $19.95 a month.