Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

FCC to Strike Down Exclusive Cable Deals

Likely to cut prices; Verizon, AT&T set to offer multi-services

By Colleen Barry,  Newser Staff

Posted Oct 29, 2007 4:01 AM CDT

(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.

Verizon logo
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 photo. (AP Photo/Jae C. Hong, File)
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 Balce Ceneta, File)
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.
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.
The AT&T logo.   (Getty Images (by Event))
AT&T logo
AT&T logo   (Getty Images)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

TV Newbie Verizon to FCC: Help Cable Users Switch

Analog Service Hanging Up on Customers

FCC: Economy Could Dampen Wireless Sale

FCC Chief Backs Down on Cable Plans

FCC Chief May Not Have Votes to Curb Cable


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne