Released: October 31, 2007

FCC approves cable competition for apartments

Source: Dibya Sarkar, Associated Press

Federal regulators on Wednesday approved a rule that would ban exclusive agreements that cable television operators have with apartment buildings, opening up competition for other video providers that could eventually lead to lower prices.

The Federal Communications Commission unanimously approved the change, which Chairman Kevin Martin said would help lower cable rates for millions of subscribers who live in apartment buildings and other multi-unit dwellings, or about 25 million households. He said the move would particularly help minorities who disproportionately live in multi-unit dwellings.

“There is no reason that consumers living in apartment buildings should be locked into one service provider,” he said in a statement Wednesday.

The rule would prohibit cable companies, such as Comcast and Time Warner Cable, from enforcing existing exclusive cable TV contracts with apartment managers and allow telecommunications companies, such as Verizon Communications and AT&T, to offer video services along with high-speed Internet access and phone service.

Read Full Article: FCC approves cable competition for apartments