FCC to Strike Down Exclusive Cable Deals

Likely to cut prices; Verizon, AT&T set to offer multi-services
By Colleen Barry,  Newser Staff
Posted Oct 29, 2007 4:01 AM CDT
FCC to Strike Down Exclusive Cable Deals
Verizon logo   (Getty Images)

The Federal Communications Commission is set to strike down thousands of exclusive contracts between cable companies and apartment buildings this week, a move officials say will drive down prices as it increases competition. Consumer groups have lobbied hard for the change as have companies such as Verizon and AT&T who want to move in to offer packages of TV, internet and phone services on a single bill.

In many places, companies and landlords have signed contracts naming a particular firm the sole provider of cable services in a building for years. Government and private studies show that a competing provider can lower prices as much as 30%. Cable companies argue that they often trade structural upgrades for long-term guarantees, making long-term contracts beneficial for everyone involved. (More cable TV stories.)

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