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SUNDAY, NOVEMBER 22, 2009
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13

Federal Court Ruling Shakes Up Cable Industry

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

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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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13 comments
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Spudsy
Aug 28, 09 2:51 PM CDT
And then they can charge us more while giving us less choice. Perfect. Why do I have to pay for 100 channels in order to get the one Science channel I want and 40 of those 100 seem to be wacko religious channels or rip off shopping channels? Reply
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+26
IN RESPONSE:
Realist
Aug 28, 09 3:01 PM CDT
Not to mention regular updates of Jon and Kate! Even worse - the channels you really want (Nat Geo, some of the Discovery channels, etc. - I'm assuming you're on the same page here) are in a different tier, so you have to pay extra again!
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+8
odowd80
Aug 28, 09 2:53 PM CDT
Awesome. Bigger corporations, less competition. I'm glad I don't have cable. Reply
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+6
2-bits
Aug 28, 09 2:54 PM CDT
It's not going to matter. Internet TV, in one form or another, will replace these guys. Reply
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+6
IN RESPONSE:
npkimmey
Aug 28, 09 3:04 PM CDT
It'll probably be a long while before that happens to the extent that it will "destroy" the actual TV industry.
Vote up! Vote down!
+2

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