GNG News Guy
02-29-2008, 05:30 PM
http://i.dslr.net/urls/90/13090.gif (http://www.dslreports.com/shownews/Comcast-To-Sue-FCC-Over-Ownership-Cap-92266)
The FCC today made it official: if you're a cable operator you cannot own more than 30% of the paid-TV market. Comcast currently sits at around 27%, which is why, as you'd expect, they're not too keen on the new guidelines. Though the FCC voted to cap cable ownership last December (http://www.thegng.org/shownews/90322), it was only today that the rules became official by being published in the Federal Register, according to Multichannel News (http://www.multichannel.com/article/CA6536926.html).
Comcast can now officially challenge the new rule in court with a good shot at reversal, given a U.S. Court of Appeals rejected the same rule back in 2001. Under the cap Comcast (26.1 million subs) couldn't currently do larger deals like acquiring Charter (5.3 million) or Time Warner Cable (13.3 million), though they could still conduct some smaller deals like acquiring Cablevision (3.1 million). Comcast exec David Cohen promised a suit earlier this month:"In an era of increased and intensifying competition among telephone, satellite and cable companies, the case for a 30% cap is even weaker than when the courts rejected it six years ago, and we plan to challenge this FCC decision in the courts at our earliest opportunity."
read comment(s) (http://www.dslreports.com/shownews/Comcast-To-Sue-FCC-Over-Ownership-Cap-92266)
The FCC today made it official: if you're a cable operator you cannot own more than 30% of the paid-TV market. Comcast currently sits at around 27%, which is why, as you'd expect, they're not too keen on the new guidelines. Though the FCC voted to cap cable ownership last December (http://www.thegng.org/shownews/90322), it was only today that the rules became official by being published in the Federal Register, according to Multichannel News (http://www.multichannel.com/article/CA6536926.html).
Comcast can now officially challenge the new rule in court with a good shot at reversal, given a U.S. Court of Appeals rejected the same rule back in 2001. Under the cap Comcast (26.1 million subs) couldn't currently do larger deals like acquiring Charter (5.3 million) or Time Warner Cable (13.3 million), though they could still conduct some smaller deals like acquiring Cablevision (3.1 million). Comcast exec David Cohen promised a suit earlier this month:"In an era of increased and intensifying competition among telephone, satellite and cable companies, the case for a 30% cap is even weaker than when the courts rejected it six years ago, and we plan to challenge this FCC decision in the courts at our earliest opportunity."
read comment(s) (http://www.dslreports.com/shownews/Comcast-To-Sue-FCC-Over-Ownership-Cap-92266)