NCTA Asks FCC to Stay Its Decision Abrogating Existing Contracts with Multiple Dwelling Units
By admin - Posted on December 12th, 2007
12/11/2007, WASHINGTON, D.C. – The National Cable & Telecommunications Association (NCTA) today requested that the FCC stay, pending judicial review, the portion of its November 13 order that prohibited the enforcement of existing exclusive access agreement between cable operators and owners of multiple dwelling units (MDUs).
NCTA said that the Commission lacks legal authority to prohibit the enforcement of existing contracts between cable operators and owners of MDUs. It asked the FCC to rule on the request by December 21, 2007, and stated that it will seek a stay in the U.S Court of Appeals if the FCC does not act by then.
The FCC’s decision reversed its 2003 order in which it concluded such contracts didn’t thwart the entry of competitive video providers, and that government intervention was not warranted in an increasingly competitive video marketplace. As a result of the 2003 order, cable operators and building owners continued to enter into exclusive agreements, which often required cable operators to make substantial investments in new or upgraded facilities. Those investments would be jeopardized, causing irreparable harm, if a stay is not granted.
“NCTA is not seeking a stay of the entire order, only the prohibition on enforcement of existing exclusive access agreements,” NCTA said in its stay request.
NCTA is the principal trade association for the U.S. cable industry, representing cable operators serving more than 90 percent of the nation's cable television households and more than 200 cable program networks. The cable industry is the nation’s largest broadband provider of high-speed Internet access after investing more than $110 billion over ten years to build a two-way interactive network with fiber optic technology. Cable companies also provide state-of-the-art digital telephone service to millions of American consumers.
Source: National Cable & Telecommunications Association
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