F.C.C. Set to End Sole Cable Deals for Apartments

New York Times

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.

This is cool. Now, if they could just tighten the restrict of media ownership in local markets, I'd be a happy blogger. Oh, and I like the thought of this even more:

Mr. Martin has also pressed the cable companies to offer so-called à la carte plans that would permit subscribers to buy individual channels, or groups of channels, at lower rates than they now pay.

I could just imagine the loss of revenue for the religious groups that rely on bundled cable deals. Nor would I lose any sleep over their loss. I am rather tired of paying for programing I find offensive, oppressive, and intolerant. I guess I am just an intolerant bastard myself. Looks like I am not alone:

But large cable companies, as well as associations representing building owners and tenant groups, said the change would fundamentally alter the economics of cable television in apartments in ways that would be harmful to consumers. They are threatening to challenge the commission in court.

“It is both unlawful and, as a matter of public policy, wholly inappropriate and counterproductive for the commission to bar cable operators from enforcing existing exclusive contracts,” said Daniel L. Brenner, a senior vice president of the National Cable and Telecommunications Association, the cable industry’s main trade association in Washington. “Exclusive contracts and building-by-building competition can, in fact, promote investment, efficiency and competition.”

Intolerant bastards seem to not like the idea of losing power and control. What I don't understand is; whatever happened to the customer is always right? Hell, in this whole scenario, the customer doesn't even get to speak. Besides, having lived in apartment buildings, I can tell you, there is no efficiency. The cable companies in the greater Twin Cities area have hardly made any effort at improving the cable infrastructure.