WASHINGTON - Federal regulators on Wednesday approved a rule that would ban exclusive agreements that cable television operators have with apartment buildings, opening up competition for other video providers that could eventually lead to lower prices.
"There is no reason that consumers living in apartment buildings should be locked into one service provider," he said in a statement Wednesday.
"The FCC decision will provide access to new competitive options for residents of these properties and encourages further deployment of broadband networks," Susanne Guyer, Verizon‘s senior vice president of federal regulatory affairs, said in a statement.
"The net result is that many consumers are likely to wind up paying more for services if the FCC‘s interference in the competitive marketplace stands," Comcast spokeswoman Sena Fitzmaurice said in an e-mailed statement.
The cable industry, which had previously said it is unlawful for the government to invalidate existing contracts, said the deals provide apartment residents with better pricing and service.
FCC commissioner Robert McDowell, who agreed with the "thrust" of the order, said the agency needs to better explain why it reversed course and indicated the order may not hold up in court.
Source: MultifamilyBiz.com