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September 6, 2008 9:35:07 PM CDT

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FCC to Strike Down Exclusive Cable Deals

Posted Oct 29, 07 4:01 AM CDT in Technology,  Business 

(Newser) – The Federal Communications Commission is set to strike down thousands of exclusive contracts between cable companies and apartment buildings this week, a move officials say will drive down prices as it increases competition. Consumer groups have lobbied hard for the change as have companies such as Verizon and AT&T who want to move in to offer packages of TV, internet and phone services on a single bill.

In many places, companies and landlords have signed contracts naming a particular firm the sole provider of cable services in a building for years. Government and private studies show that a competing provider can lower prices as much as 30%. Cable companies argue that they often trade structural upgrades for long-term guarantees, making long-term contracts beneficial for everyone involved.

Sources New York Times, Reuters

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Verizon logo   (Getty Images)
Federal Communications Commission (FCC) commissioner Michael Copps speaks during the annual FCC Breakfast at the National Association of Broadcasters conference in Las Vegas in this April 17, 2007 file...   (Associated Press)
Federal Communications Commission (FCC) Chairman Kevin J. Martin, left, looks on as commissioner Michael J. Copps, testifies on Capitol Hill in Washington in this Feb. 1, 2007 file photo. (AP Photo/Manuel...   (Associated Press)
Verizon lobbied for the decision the FCC is expected to make this week banning exclusive contracts between apartment buildings and cable companies.   (Associated Press)
The AT&T logo.   (Getty Images (by Event))
AT&T logo   (Getty Images)
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