FCC Looks Into Exclusive Cable Contracts

The FCC is considering regulating the exclusivity contracts video services providers sign with apartment complexes, gated communities and other housing developments.

On Thursday, the agency adopted a notice of proposed rulemaking (NPRM), seeking comments on the matter.

Commissioners want to explore whether such contracts – often requiring residents to pay for the services whether they want them or not – hamper competition or eliminate consumer choice.

The NPRM assumes the commission is authorized to regulate exclusive contracts and wants input on that presumption. It also wants ideas for making sure exclusive contracts don’t unreasonably impede video competition.

“There is no reason why Americans who happen to live in multiple dwelling units should have a narrower range of choices when it comes to video and broadband service than Americans who live in free-standing buildings,” said Democratic Commissioner Michael Copps. His colleagues expressed similar sentiments.

USTelecom, an association that represents ILECs, said its members “believe that these types of cable contracts stifle competition and most importantly – harm consumers. We applaud the commission for its action today.”

Telecom cable providers welcomed the FCC’s NRPM, saying regulation would help them provide the competition the government desires.

“We have been forced to respond with our own developer initiatives, but we would much prefer to compete by … selling to the people who will actually use and pay for those services,” said Steve Oldham, president and CEO of SureWest Communications, a California-based ILEC.

“Exclusive access deals between building owners or developers and cable companies deny consumers choice and keep cable rates high by blocking competition,” said Susanne Guyer, senior vice president of federal regulatory affairs for Verizon Communications Inc.

FCC www.fcc.gov  

SureWest Communications www.surewest.com  

USTelecom www.usta.org  

Verizon Communications Inc. www.verizon.com

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