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Federal Court Ruling Shakes Up Cable Industry

FCC limit doesn't take into account other sources of competition, court rules

By Nick McMaster,  Newser Staff

Posted Aug 28, 2009 2:42 PM CDT
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(Newser) – In a decision that could revolutionize the communications industry, a federal appeals court has struck down an FCC rule prohibiting a cable TV company from serving more than 30% of the market, Reuters reports. The court declared the rule "arbitrary and capricious,” noting that cable operators face competition not just from one another but from satellite TV providers and telephone companies as well.

"Cable operators, therefore, no longer have the bottleneck power over programming that concerned the Congress in 1992,” the court said. The FCC rule, set in 1993, has been repeatedly disputed. The ruling could set off a round of industry mergers. Comcast, the biggest US cable provider, may now attempt to buy smaller firms such as Cablevision, Charter Communications, or Cox Communications.

In this Jan. 7, 2008 file photo, a projected image of the Comcast logo is seen at the Consumer Electronics Show in Las Vegas.
In this Jan. 7, 2008 file photo, a projected image of the Comcast logo is seen at the Consumer Electronics Show in Las Vegas.   (AP Photo/Paul Sakuma, file)
DirecTV logos are seen on flyers in North Andover, Mass.
DirecTV logos are seen on flyers in North Andover, Mass.   (AP Photo/Elise Amendola)
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This important decision affirms that rules must reflect the changing realities of the dynamic video marketplace where today consumers have more choice in video providers and channels than ever before.
- Sena Fitzmaurice, Comcast rep.

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COMMENTS
Showing 3 of 12 comments
Snarfeh
Aug 28, 2009 11:47 AM CDT
It already has replaced it for me. I wanna pick my own channels. Until I am offered channels a la carte, screw cable and dish networks.
2-bits
Aug 28, 2009 9:57 AM CDT
Annie: I've heard of it. We have ways around it. :) The real solution is not to get internet from a cable company or a company that doesn't support net neutrality..
Silverbow7
Aug 28, 2009 9:04 AM CDT
Maybe someone will chalange this ruling on appeal. I've dealt with them and I dread to think I would ever be forced to deal with them again.

 
Congress • Comcast • FCC • Cablevision • US Court of Appeals • antitrust • sattelite • telecom • Cox Communications • Charter Communications

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