Cable companies are no longer insulated from competition.  That’s the result of a well-grounded decision of the D.C. Court of Appeals.  At issue was the question whether cable companies can have exclusive contracts with apartment buildings.  It used to be the rule that cable companies undertake the expense of wiring the apartment complex and then have it all to themselves.  The FCC issued an order prohibiting exclusive contracts between cable companies and apartment building owners.  The National Cable and Telecommunications Association sued claiming the FCC lacked authority to prohibit exclusivity.  The law makes it unlawful for a cable operator to engage in unfair methods of competition or interfere with any multi-channel video programming source, including satellites.  The cable operators argued the law was designed to prevent exclusivity with regard to programming, not service.  But the Court said it could mean no exclusivity for programming or service.  So on the question of why are we here, broadband has gotten broader, hopefully it won’t turn out to be wire less and pay more.

THIS IS NEIL CHAYET LOOKING AT THE LAW™

National Cable and Telecommunications Association v. Federal Communications Commission, D.C. Circuit Court of Appeals, No. 08-1016, May 26, 2009, Tatel, J., U.S. Law Week, Vol. 77, No. 47, Pg. 1758, 6-9-09

Podcast: Download