NCTA Asks FCC To Stay Leased Access Rules
Cable Companies Want Rates Unchanged Pending Appellate Decision
By Ted Hearn -- Multichannel News, 3/28/2008 6:38:00 PM
Washington—The cable industry on Friday asked the Federal Communications Commission to suspend new rules that slashed the rates third-party programmers pay cable companies to lease time on their systems.
The request came from the National Cable & Telecommunications Association, which urged the FCC to keep the old rules in place while NCTA's legal action against the new ones was being heard in a federal court of appeals.
"By purposely encouraging a flood of new commercial leased access users, the new rules—and, in particular, the new rate formula—will irreparably harm both cable operators and cable program networks," NCTA said in its filing.
Last November, the FCC cut leased access rates by 75% and effectively imposed a ceiling that cable could not charge more than 10 cents per month per subscriber.
Under federal law, large-capacity cable operators must set aside up to 15% of their channels for commercial lease by third party programmers. The leased access concept has not been a wild success in part because the pay-TV business model is predicated on programmers receiving compensation from distributors, not vice versa.
But NCTA fears that the FCC has driven leased access rates so low that programmers won't need to pay for distribution.
"Cable operators will be forced to rearrange and remove existing programming from their channel lineups to accommodate dozens of new commercial leased access users who avail themselves of free channels, making it more difficult, confusing, costly, or even impossible for customers to continue watching the programming of their choice," NCTA said.
NCTA asked the FCC to act on its stay motion no later than April 11, 2008.
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I watch leased access channels sometimes, and there are some interesting and quality programming to be found every so often. However, if cable operators must give up valuable bandwidth for leased access and government access channels, it only seems fair that satellite and telcos should be required to do the same. What is required of one should be required of all.
Mike Luke - 3/31/2008 4:34:00 PM EDT -
All of you are obviously struggling businesses looking for a cheap way to promote your product. Cable is a commercial entertainment and information service. It is not government owned or operated. What you are asking the FCC to allow is no different than requiring your local multiplex theatre to devote 15% of its screens for advertisers to use 24/7. The rule itself is not in the public's best interest. It is in YOUR best interest. The last thing viewers want to see on TV is more 30 minute spots for something that can not make it in the "normal" marketplace.
Larry Martin - 3/31/2008 10:05:00 AM EDT -
This is a case where the bully (the cable company) has been caught and reprimanded by the teacher (the FCC) and told to play by the rules. Now, they are crying “No fair!â€
Instead of providing evidence or proof of harm, this quasi monopoly claims “ unlawful burden of speech†(First amendment) and an unconstitutional "uncompensated taking of private property" (Fifth Amendment) rights are being violated or in other words they won’t be able to dictate the rules of play and they will no longer own the football.
The cable company has long dictated the rules of leased access through various tactics and manipulation of the FCC, having stymied the development of leased access and on the most part, has ignored the intentions of Congress who established leased access. Now, after being told to play by the intentions (rules) of Congress with respect to leased access they are crying foul.
Multichannel writes “Under federal law, large-capacity cable operators must set aside up to 15% of their channels for commercial lease by third party programmers. The leased access concept has not been a wild success in part because the pay-TV business model is predicated on programmers receiving compensation from distributors, not vice versa.â€
Like duh ! And like if the advertising revenue is lower then what it pays to the cable operator, then the programmer is not going to be in business very long. But when you pay rates, that allow you to pay the cable company, invest in equipment and programming and pay the rent, utility bills, etc. then perhaps the model can be a success.
Multichannel also writes “Cable operators will be forced to rearrange and remove existing programming from their channel lineups to accommodate dozens of new commercial leased access users who avail themselves of free channels, making it more difficult, confusing, costly, or even impossible for customers to continue watching the programming of their choice," NCTA said.
If cable companies were required to set aside 15% of their channel capacity for leased access capacity, why are they now crying foul that they will be forced to rearrange and remove existing programming from their channel lineups to accommodate dozens of new commercial leased access users who avail themselves of free channel. Wait a minute, did I just read that cable companies want to make leased access free? Perhaps they should demand that they be required to provide free leased access channels. Okay seriously, shouldn’t they have planned for this long ago ? They seem to be saying “what you actually want us to do, what you are telling us that we had do for a long time now ?†Surprise, surprise “Yes, when we tell you to clean your room, we mean clean your room†Ah, ma no fair !!
Also in the Multichannel article “By purposely encouraging a flood of new commercial leased access users, the new rules—and, in particular, the new rate formula—will irreparably harm both cable operators and cable program networks," NCTA said in its filing.
Oh my gosh, they will have competition. Can’t have that now can we? Not good for big business and the bottom line. The public interest might be served. Heaven’s forbid ! Global warming be damned, it’s these new leased access rules and the new rate formula that will destroy the world. Thankfully the cable companies are trying to save us.
If there are any Commissioners or Court of Appeals people reading these comments, please take the appeal of the NCTA, a quasi monopoly bully at its face value, “a cry of no fair†when it is being told to play by the rules and operate in the public interest.
Maybe, just maybe this flood of new leased access programmers, including many LPTV stations, can provide programming of public (local) interest, benefit and value, and serve their communities, so that peace may then reign throughout the world. Okay, I may be dreaming on that one.
Duane J. Polich - 3/29/2008 1:28:00 AM EDT -
Cable has nearly killed Leased access over the last decade with their "corporate, all mighty" attitude of doing everything in their power to keep programmers from accessing the system efficiently. Now cable thinks the "flood" of programmers will be overwhelming? It was hardly the price that drove programmers away. It was the terrible customer service tactics and their grip on FCC commissioners that never allowed the little guy a chance. If cable would have worked with programmers in the beginning they would have been able to keep the prices high and programmers happy without having to now drop them 75%. I crave the days when companies actually care about their customers again instead of how greedy they can become.
Ian Reynolds - 3/28/2008 9:56:00 PM EDT -
The NCTA is blowing smoke up the FCC A**. Currently less than 1% of
channels set aside by Congressional mandate for Leased Access are in
use. So the NCTA thinks that years of abuse of Leased Access
programmers should continue until Zero % of Leased access channels
are used? The cable industry is little more than a criminal
organization operating in the fashion of a mafia family or more clearly
Racketeering in a Conspiratal Organization. Perhaps a RICO case is a
better solution to the criminal and fraudulent practices of the Cable
mafia. Who are still running advertising that says all analog TV
signals end on 2-18-2009, when there are more than 2000 TV
stations who will be still broadcasting in analog after the 2-19-2009.
Perhaps since those TV stations compete for local cable ad revenue it
is OK to use Racketeering tactics to eliminate their competitors. The
Cable mafia needs to be sanctioned by the FCC and regulated to
eliminate their RICO abuses.
J Marcus Campbell - 3/28/2008 8:56:00 PM EDT

























