FCC Filing: Don't Let Cable Block Out Telco Competition

CWA joined with leading consumer groups this week in a joint filing urging the Federal Communications Commission to maintain rules that prohibit the big cable TV companies from denying "must-have" programming to competitors such as satellite broadcasters and AT&T and Verizon.

The cable giants still control 70 percent of the multi-channel video market, and they are in a position to choke off competition by keeping other companies from offering programming from channels like CNN, Discovery, HBO and popular regional sports networks, the joint filing stated.  The cable companies own, at least in part, four-fifths of the 90 most-watched channels.

FCC program access rules, due to "sunset" this year, should be extended for another five years, stated CWA along with the Consumer Federation of America, Consumers Union, Free Press and the Media Access Project.

The lack of true competition is evidenced by a 70 percent increase in cable prices – two and half times the inflation rate – since Congress deregulated cable pricing in 1996, the filing noted.

Cable mergers and license deals in recent years have further concentrated Big Cable's dominance in regional clusters, with emphasis on the big urban markets, while the growth of satellite services has mainly come in smaller rural markets.  And so far, competition from AT&T and Verizon has been limited, the groups stated.  Verizon right now can only market its FiOS service to 3 million homes and AT&T's U-Verse only claims 10,000 subscribers to date.

The filing urged the FCC to reject the cable industry's contention that anti-trust laws are sufficient to protect competitors, noting:  "Anti-trust actions are time consuming, taking years to resolve, during which competition will have been stifled."