FCC nixes exclusive cable deals with apartments
Jeff Smith, Rocky Mountain News
Published November 1, 2007 at midnight
Federal regulators this week approved a rule barring cable TV operators from getting exclusive deals to serve apartment, condominium and other multiple-unit developments.
The Federal Communications Commission maintained the rule banning such contracts will increase choice and competition.
But the National Cable and Telecommunications Association, the industry's lobbying group, countered that the action is "legally suspect" and could jeopardize TV services to low-income neighborhoods.
Philadelphia-based Comcast Corp., which said the rule is a "blow" to consumers, wouldn't disclose how many buildings in Colorado might be affected. But Comcast CEO Brian Roberts said recently that about 10 percent of the company's subscribers nationally could be affected.
Regulators said the rule doesn't prevent a provider from negotiating a bulk discount, but does prevent them from getting exclusive access to a property.
Qwest Communications praised the decision.
"Of the nearly one-third of Americans who live in multiple dwellings, many still do not have access to competing providers that offer video as well as broadband Internet services," Shirley Bloomfield, senior vice president of Qwest federal relations, said in a statement.
The ruling could be challenged legally in part because it prohibits not only new agreements, but also the enforcement of existing exclusive contracts.
In addition, the ban singles out cable TV providers. The FCC separately is seeking comment on whether to take action on exclusive satellite TV contracts.
Qwest also has some exclusive agreements in its 14-state region, said spokeswoman Carolyn Tyler, "because that was industry practice. We have only 20 compared to thousands by cable."
Telcos, cable and other video providers also increasingly are making exclusive marketing deals, especially with upscale single-family home developments.
The FCC said it is seeking comment on exclusive marketing deals.
EchoStar, operator of the Dish network, said in a statement that
satellite TV service to multiple dwelling units "involves a host of
technical issues that are not applicable to cable." The company said
that includes higher equipment costs.
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