Which act ruled that cities could not regulate basic fees unless the city received fewer than three over-the-air channels?

• A. The Communications Act of 1934
• B. The Telecommunications Act of 1996
• C. The Cable Communications Policy Act of 1984
• D. The Cable Communications Policy Act of 1992

Answer: (C)

The idea being tested is a specific balance between local control and federal rules on cable pricing. Under the Cable Communications Policy Act of 1984, local governments were allowed to regulate the rates for basic cable service only when the market had limited over‑the‑air competition. The rule used a threshold based on how many over‑the‑air channels were available: if a city had fewer than three OTA channels, it could regulate basic cable fees; but once a city could receive three or more OTA channels, the federal framework preempted local rate regulation for basic service. This setup aimed to protect consumers in markets with limited competition while leaning toward leaving pricing to market forces where there was more OTA channel availability. The other acts listed either establish the general framework for communications law (the 1934 act) or address other aspects of telecom policy (the 1996 act and the 1992 cable act) and do not include this specific three-channel threshold.