TBO.com - TBO is Tampa Bay Online

FCC Likely To Ban Exclusive Cable TV Deals

ADVERTISEMENT

The Associated Press

Published: October 30, 2007

The country's top communications regulator Monday said a ban on exclusive cable television service deals with apartment buildings would spur competition and benefit almost 25 million households.

The Federal Communications Commission plans to throw out such exclusive cable contracts at a meeting Wednesday, allowing other video providers, including telecommunications companies Verizon Communications Inc. and AT&T Inc., to jump into the market.
FCC Chairman Kevin Martin said he's 'optimistic' the commission will approve the rule change, which could significantly lower cable prices for millions of subscribers.

Almost 32 percent of Americans live in apartment buildings, he said.

'What we've seen over the last 10 years is a dramatic rise in cable prices that consumers are paying, up almost 100 percent,' he said.

Under the proposal, cable companies, such as Comcast and Time Warner Cable, would be prohibited from brokering exclusive deals with apartment buildings and other multiunit dwellings to provide cable TV to building residents, who usually have no other choice for such services.

Martin, who previously circulated the proposal among commissioners, said it would be especially favorable to minorities, because they disproportionately represent a larger share of apartment dwellers.

Trade groups representing cable TV companies and building owners have indicated they may challenge the rule in court, if it passes.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT