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Oct 30, 2007 9:02 am US/Eastern
FCC To End Exclusive Cable Deals
WASHINGTON (CBS) ―
Federal regulators plan to throw out exclusive cable television service contracts with apartment buildings and open up competition to phone companies, according to a published report.
The new rule, which could significantly lower cable prices for millions of subscribers who live in apartments, is expected to be approved Wednesday by the Federal Communciations Commission, The New York Times reported Monday, citing an interview with the agency's chairman.
Under FCC Chairman Kevin Martin's proposal, cable companies, such as Comcast Corp. and Time Warner Cable Inc., would no longer have exclusive deals with apartment buildings and other multiunit dwellings to provide cable TV to building residents, who usually have no other choice for such services. Between 1995 and 2005 the rate for basic cable has risen 93 percent.
The new rule could benefit other video providers, including telecommunications companies Verizon Communications Inc. and AT&T Inc.
FCC spokesman David Fiske said the issue will be discussed at the agency's meeting on Wednesday, but would not provide other details.
Martin, who circulated the proposal among commissioners, previously said the proposal would be favorable to minorities because they disproportionately represent a larger share of apartment dwellers than non-minorities.
The Times also reported that trade groups representing cable TV companies and building owners have indicated they may challenge the rule in court, if it passes.
Shares of AT&T added 8 cents to $41.54, while Verizon added 14 cents to $45.74 in morning trading. Comcast dipped 18 cents to $21.05, while Time Warner fell 17 cents to $29.35.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
