SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




FCC Looks to Relax Regional Broadcast Exclusivity Controls

Featured Article

October 05, 2012

FCC Looks to Relax Regional Broadcast Exclusivity Controls

Share
Tweet
By Tara Seals
TMCnet Contributor

Federal regulators are expected to ease rules governing exclusive programming deals for regional sports networks (RSN), in a move that many say could limit viewing choices for sports fans.

Rules that prevent a vertically integrated company from denying competitors must-carry sports programming are expected to set this week unless the FCC votes to extend them. Should the ban be allowed to end, cable operators like Comcast (News - Alert) and Time Warner Cable, which own several RSNs around the country that have exclusive local sports access, would be able to prevent regional sports network distribution to rivals like telcos and satellite companies if they so choose.


However, in doing so, they would be opening themselves up for litigation.

That’s because FCC Chairman Julius Genachowski (News - Alert) said the ban-lifting proposal presumes that withholding co-owned regional sports net programming would presumptively be in violation of the fair and deceptive rule. Essentially, any cableco looking to withhold the must-carry content it controls would lose, should a telco or satellite take it to court or ask for a FCC review.

Thus, litigation, or the fear of it, would keep the playing field level, as it were – or so the theory goes.

Not everyone is so sure: "We believe the deregulation would be a setback for the satellite broadcasters and telco multichannel competitors (DirecTV (News - Alert), DISH Network, Verizon Communications, AT&T),  though we expect the FCC to retain some safeguards for carrying must-have regional sports networks," said Stifel Nicolaus analyst Christopher King in a report.

Oppenheimer analyst Tim Horan meanwhile wrote that the details of the FCC's revised rules “will be key.”

The proposal also calls, for instance, for a shift in enforcement of content rules to case-by-case review of complaints. The FCC’s proposal puts a 60-day review window on that process. But some, like Rep. Ed Markey (D-Mass.), say tying up the complaints for that long would spur sports fans to switch providers to the Comcasts and Time Warners of the world in order to be able to watch their favorite teams.

The FCC is expected to vote on the issue by the end of the day today, Oct. 5. Otherwise the ban automatically lifts at midnight without any new provisions or language from the proposal – like the presumptive violation of competitive regulations on must-carry content if MSOs withhold RSN programming – added to superseding rules.

Verizon Wireless and Cox (News - Alert) Communications have extended their joint marketing program , offering up to $400 to customers who bundle Internet and wireless services in select markets in Kansas, Arkansas and Nebraska, while the wireless carrier launched similar offers with Time Warner Cable Oceanic (News - Alert) in Hawaii.

In December 2011, Comcast, Time Warner Cable and Bright House Networks entered into an agreement to sell Verizon Wireless their Advanced Wireless Services spectrum holdings for $3.6 billion. In addition, the operators and wireless carrier said they would sell each other's services in select areas.

Cox entered into a similar arrangement with Verizon Wireless.

The Federal Communications Commission in August granted conditional approval of the spectrum deals. The U.S. Department of Justice Department gave the green light to the partnerships, but restricted cross-marketing agreements to limit them in time and scope.

For example, Verizon Wireless is not allowed to market competing cable service in FiOS TV markets.

In the Cox markets, customers are eligible to receive a Visa prepaid debit card ranging from $100 to $400, depending on the selected bundle of video, Internet, home phone and 4G LTE mobile service. In May, the companies kicked off the first market when they began selling each other’s services in parts of Cox’s Oklahoma City and Tulsa service areas.

In Hawaii, customers can now purchase packages of Oceanic Time Warner Cable residential TV, Internet and phone services and Verizon Wireless smartphones and tablets from both companies to be eligible to receive a Visa prepaid debit card valued at up to $200. Markets that launched Thursday include locations on Oahu, Kauai and the Big Island.

Earlier year, TWC and Verizon Wireless began joint marketing initiative in cities in nine states: Illinois, Kansas, Nebraska, New England, North Carolina, Ohio, South Carolina, Tennessee and Wisconsin.


Tara Seals has over thirteen years of experience as a journalist. Her areas of expertise cover the waterfront of the service provider segment, especially mobile networks, devices and applications; and video infrastructure, content and broadcast models.

Edited by Braden Becker


Back to Video World Insider Home
Comments powered by Disqus






Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy