Cable Firm to Cut Rates as Part of FCC Settlement

More than 100,000 subscribers to Continental Cablevision Inc. in the Los Angeles area can expect lower rates--and possibly refunds--in the coming months as part of a nationwide settlement negotiated with the Federal Communications Commission.

At least 45% of Continental’s 3.1 million subscribers nationwide will receive in-kind refunds ranging from $2 to $10, said a vice president of the Boston-based company. Customers will collect a total of $9.5 million in credits toward future cable services, but it is not clear whether any Los Angeles-area customers will be eligible for them.

Executives from Continental’s Los Angeles office did not return repeated phone calls.

All Continental cable customers will see their basic rates drop 15%. Fees for expanded cable services are expected to rise to make up the difference.

Continental will also, as part of the agreement, invest $1.35 billion over the next six years to rebuild and upgrade its domestic cable systems.

The settlement with Continental Cablevision--the nation’s third-largest cable operator--comes after hundreds of complaints that the company set its rates higher than allowed under the federal government’s cable-rate regulations.