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Posted by Monty Solomon on October 30, 2007, 2:05 am
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F.C.C. Set to End Sole Cable Deals for Apartments
By STEPHEN LABATON
The New York Times
October 29, 2007
WASHINGTON, Oct. 28 -The Federal Communications Commission, hoping to
reduce the rising costs of cable television, is preparing to strike
down thousands of contracts this week that gave individual cable
companies exclusive rights to provide service to an apartment
building, the agency's chairman says.
The new rule could open markets across the country to far-ranging
competition. It would also be a huge victory for Verizon
Communications and AT&T, which have challenged the cable industry by
offering their own video services. The two companies have lobbied
aggressively for the provision. They have been supported in their
fight by consumer groups, satellite television companies and small
rivals to the big cable providers.
Commission officials and consumer groups said the new rule could
significantly lower cable prices for millions of subscribers who live
in apartment buildings and have had no choice in selecting a company
for paid television. Government and private studies show that when a
second cable company enters a market, prices can drop as much as 30
percent.
The change, which is set to be approved Wednesday, is expected to
have a particular effect on prices for low-income and minority
families. They have seen cable prices rise about three times the rate
of inflation over the last decade. A quarter of American households
live in apartment buildings housing 50 or more residents, but 40
percent of households headed by Hispanics and African-Americans live
in such buildings.
...
http://www.nytimes.com/2007/10/29/business/media/29cable.html?ex=1351310400&en=cc0420db746d5951&ei=5090
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