Ahead of the Bell: Cable Competition |
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Wed, 31 Oct 2007 11:08
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WASHINGTON (AP) - Federal regulators on Wednesday are expected to ban exclusive agreements that cable television providers have with apartment buildings to give consumers greater choice in the market.Kevin Martin, chairman of the Federal Communications Commission, said he's 'optimistic' that the proposal, which is scheduled for a vote, will be approved.He said the proposal would help lower cable rates for subscribers in nearly 25 million households who live in apartment buildings and other multiunit dwellings.If approved, cable companies, such as Comcast Corp. and Time Warner Cable Inc. -- the country's two largest cable providers in terms of subscribers -- would be barred from brokering exclusive deals with apartment building managers.The cable industry, which said it is unlawful for the government to invalidate existing contracts, said such deals provide apartment residents with better pricing and service.'While the FCC just ruled in 2003 that such exclusive contracts were reasonable, a decision to reverse that ruling could decimate the benefits of these contracts with no guarantee that a new provider could offer similar services,' Dan Brenner, senior vice president of the National Cable & Telecommunications Association, said in a statement.However, telecommunications companies, such as Verizon Communications Inc. and AT&T Inc., which are increasingly offering bundled TV, high-speed Internet and phone services, have backed Martin's initiative because they said such exclusive arrangements shut out competition.Martin said banning such deals would particularly benefit minorities because they disproportionately represent a larger share of apartment dwellers.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Apartments may see cable competition 