FCC Adopts 30% Cable Ownership Cap
Move Stops Comcast From Acquiring More Cable Systems
By Ted Hearn -- Multichannel News, 12/18/2007 10:47:00 AM
Washington – As expected, the Federal Communications Commission adopted a rule Tuesday afternoon that bars any cable company in the U.S. from serving more than 30% of all pay-TV subscribers nationally.
The rule mostly likely stops Comcast from making a big cable acquisition since the largest cable company in the U.S. has 27% market share under FCC rules on how to count cable subscribers. The cable industry is expected to appeal the new rule in federal court.
The FCC’s action was approved by Republican FCC chairman Kevin Martin and the agency’s two Democrats, Michael Copps and Jonathan Adelstein – the same majority that voted Nov. 27 to slash cable leased access rates by 75%.
“Cable operators are no longer the gatekeepers they may have once been,” said FCC Republican Deborah Taylor Tate, who dissented with FCC Republican Robert McDowell from imposing a 30% cap.
In 2001, a panel of the U.S. Court of Appeals for the D.C. Circuit stuck down the same 30% came revived by the agency Tuesday. Both Tate and McDowell noted that the marketplace had changed dramatically in six years, including satellite TV’s growth from 18% to 30% market share.
“This order will be overturned by the D.C. Circuit,” McDowell declared.
Martin, saying the 30% cap responded to the court ruling, claimed the purpose was to ensure that no single cable company used its clout to make or break a cable company seeking carriage for the first time or a carriage renewal contract.
The FCC decided to postpone action on reviving rules that cap the number of channels a cable company may occupy with its own programming. The agency opted to seek more public comment on the topic in the months ahead.
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We don't need any more infomercials and we certainly don't need rinky-dink shows that only the creators want to see for their own egos. Leased access is a waste of frequency space, much like many of the channels that get Must Carry.
Get rid of Must Carry, Leased Access and Chairman Martin! Let private businesses be run like private businesses.
Frank O. - 12/20/2007 1:27:00 PM EST -
In the last 23 years cable companies have consolidated cable
operations in northeast Florida to the point where the Comcast
Jacksonville system covers over 5 counties and crosses state lines into
Georgia. They can charge a lease access programmer over $1,500,000
per year for a full time lease access channel on the Jacksonville cable
system, since they have collapsed the head-ends. So if an
independent programmer, or Class A station or Low Power station
wants to get on a cable channel, the lease Access rate they will be
offered is based on the entire consolidated cable system. No wonder
only 1% of available lease access channels are used in America. The
economic obstacle to entry is enormous. How many independent
video programmers can afford over $1,500,000 per year to enter into
the market.
At the same time the cable system have created local originated
channels to compete with independent video programmers. Comcast
has entered into lease access agreements for far lower than the
maximum rate, with restrictive clauses as to types of ad sales, and the
requirement that the lease access programmer will use Comcast
programming. So if you want a rate that can allow entry to the
marketplace you must not compete with Comcast's local ad sales and
you must carry Comcast produced programming. If Comcast can sign
on contract for $50,000 per year with these restrictions and charge a
rate of 3.3% of the rate offered a channel without these restrictions
then not only are they a "Gatekeeper" they are abusing their cable
monopoly.
If Commissioner Tate cannot understand this, she is unfit to serve on
the FCC.
J Marcus Campbell - 12/19/2007 11:42:00 AM EST -
Commissioner Tate thinks that cable companies are no longer the gate
keepers they were 23 years ago. Well, Ms Tate is not only wrong, she
does not deserve to be re-nominated the serve on the FCC is she
actually believes that cable companies are not the gate keepers they
were 23 years ago. It only takes one Senator to put a hold on Ms Tates
re-nomination to keep this confused woman from destroying our
democracy. I urge all Americans to write their Senators and ask them to
place a hold on Ms Tate's re-nomination.
J Marcus Campbell - 12/19/2007 11:40:00 AM EST -
Poor Kevin, what a little man. Tax payers have had enough with your antics - it's time to go. Come join us in the real world - you're sure to be eaten alive. We need Public Servants not Public Tyrants.
Quigley Spargus - 12/19/2007 9:29:00 AM EST -
Commissioner Tate has no idea what is really going on. Big Cable operators do everything they can to keep the little guy out and small cable operators do everything to make it work. My local cable company (COX) wouldn't even agree to receive our local television signal until complaint after complaint and almost 2 years of screaming at them. Even after they said they would, they still haven't done it!!! Instead of receiving us like they do other high power stations for FREE, they want us to pay thousands of dollars per month and over $10,000 for an initial set-up fee, Because we can't argue the price, we have to pay them $50 each time we give them a VHS tape instead. Now this doesn't even include the charge they make us pay to air the programming. We produce news, weather, sports, local talk shows and even telethons for local charities. The big cable guys care nothing about partnering with someone that might provide a community service for their own subscribers. If they had their way they'd get rid of all local programmers all together. Not letting any local person use the system, but since they can't do that, they smile and grin at you and say we'd love to help, but you just can't pay us enough. I'm ecstatic that we finally have a chairman that is making waves and serving the people and not getting handed money from the media giants!!
Ian Reynolds - 12/19/2007 9:09:00 AM EST
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