Comcast Has Victory Over FCC Subscriber Cap
Comcast and their supporters have achieved a victory over the FCC’s regulations calling for a 30% subscriber cap. The cap has been in place since 1992 when the Cable Television Consumer Protection and Competition Act went into effect. Since then it has been a source of contention between the FCC and Cable Providers.
The CTCPC Act of 1992 “directed the FCC, in order to enhance effective competition, to prescribe rules and regulations to ensure that no cable operator or group of cable operators can unfairly impede the flow of video programming from the video programmer to the consumer”. This was aimed at preventing cable operators from unfairly blocking smaller competitors from trying to reach consumers by taking too large a share of the market. Competition is always good for the consumer, making goods and services more affordable.
Before filing their petition Comcast, the largest cable provider, controlled 27% of the market share edging dangerously close to the 30% cap.
Since 1993 Satellite Providers now serve one third of all subscribers and the number of networks in the television subscriber industry has increased “five-fold”, making 30% share of the subscriber market considerably larger than it was in 1992.
Those in support of the petition filed by Comcast are:
- The National Cable and Telecommunications Association
- Bright House Networks
- Cable Television & Communications Assoc. of Illinois
- The Indiana-Michigan-Minnesota-Missouri Cable Telecommunications Associations
- Time Warner
Those in support of the FCC, collectively known as CCTV Intervenors, are:
- Center for Media and Democracy
- United Church of Christ
- Center for Creative Community
Senior Circuit Court Judge Randolph, at the conclusion of the ruling wrote, “I continue to believe that whenever a reviewing court finds an administrative rule or order unlawful, the Administrative Procedure Act requires the court to vacate the agency’s action”.
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