[Infowarrior] - FCC OKs cable competition for apartments

[Richard Forno]

 FCC OKs cable competition for apartments

By DIBYA SARKAR, AP Business Writer1 hour, 30 minutes ago

http://news.yahoo.com/s/ap/20071031/ap_on_hi_te/cable_competition_fcc&printe
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Federal regulators on Wednesday approved a rule that would ban exclusive
agreements that cable television operators have with apartment buildings,
opening up competition for other video providers that could eventually lead
to lower prices.

The Federal Communications Commission unanimously approved the change, which
Chairman Kevin Martin said would help lower cable rates for millions of
subscribers who live in apartment buildings and other multi-unit dwellings,
or about 25 million households. He said the move would particularly help
minorities who disproportionately live in multi-unit dwellings.

"There is no reason that consumers living in apartment buildings should be
locked into one service provider," he said in a statement Wednesday.

The rule would prohibit cable companies, such as Comcast Corp. and Time
Warner Cable Inc., from enforcing existing exclusive cable TV contracts with
apartment managers and allow telecommunications companies, such as Verizon
Communications Inc. and AT&T Inc., to offer video services along with
high-speed Internet access and phone service.

"The FCC decision will provide access to new competitive options for
residents of these properties and encourages further deployment of broadband
networks," Susanne Guyer, Verizon's senior vice president of federal
regulatory affairs, said in a statement.

But Comcast said the change is a "blow" to consumers in apartment buildings
and condos and could spur litigation for years to come.

"The net result is that many consumers are likely to wind up paying more for
services if the FCC's interference in the competitive marketplace stands,"
Comcast spokeswoman Sena Fitzmaurice said in an e-mailed statement.

The National Cable and Telecommunications Association did not immediately
comment on the matter.

The cable industry, which had previously said it is unlawful for the
government to invalidate existing contracts, said the deals provide
apartment residents with better pricing and service.

The new FCC ruling is a reversal of its stance four years ago when it found
little evidence that the contracts stifled competition.

FCC commissioner Robert McDowell, who agreed with the "thrust" of the order,
said the agency needs to better explain why it reversed course and indicated
the order may not hold up in court.

"I only wish we were giving our attorneys more legal ammunition to use to
defend the agency," he said.