Consumers Win in U.S. Court of Appeals Cable Franchise Ruling
Background: Today, the U.S. Court of Appeals for the Sixth Circuit upheld a 2007 Federal Communications Commission Order barring local cable franchising authorities from blocking competitive entrants to the video services market. The three judge panel found that the FCC’s prohibition on unreasonable refusal to award competitive franchises by local authorities is “well within” the agency’s statutory authority.
The following statement is from Walter B. McCormick Jr., President and CEO of USTelecom:
“Today’s decision is a great win for consumers. Before the FCC’s Order, Americans had their choice artificially limited to incumbent cable providers, despite the billions of dollars telecom companies have invested to create networks that allow them to provide a competitive alternative. But as the FCC has found, having that option makes a real difference: consumer prices are 17 percent lower in markets with a second facilities-based video provider. This decision—and the Order it upholds—confirms the FCC’s action, and will allow telecom companies to continue to bring those savings to consumers across the country by lowering the barriers facing new competitors. The ability to offer video services serves as a key driver for continued, and even accelerated, broadband deployment by telecom companies. We enthusiastically support the level playing field affirmed by today’s decision, and we applaud the FCC’s continued leadership in bringing competitive video services to consumers.”
Release date: Friday, June 27, 2008
The United States Telecom Association, USTelecom, is the premier broadband trade association representing service providers
and suppliers for the telecom industry. USTelecom represents companies offering a wide range of services across the communications
platforms, including voice, video and data over local exchange, long distance, wireless, Internet and cable services.