NCTA files motion to stay part of FCC’s MDU ruling
The National Cable & Telecommunications Association (NCTA) is challenging part of the rule approved by the Federal Communications Commission (FCC) in October that struck down exclusive contracts between cable operators and apartment buildings (see story).
The cable industry’s lobbying group filed a motion with the U.S. Court of Appeals in Washington, D.C., to stay part of the rule that made the agreements between operators and multi-dwelling units (MDUs) illegal.
In 2003, the FCC decided not to interfere with contracts between operators and MDUs, the NCTA is arguing, and this encouraged cable providers to seek out and sign new agreements.
The rule was backed by telcos such as AT&T and Verizon, since they now offer a competitive TV offering. And the ruling was yet another blow to the cable industry from the competition-seeking chairman.
“All consumers, regardless of where they live, should enjoy the benefits of competition in the video marketplace,” FCC Chairman Kevin Martin said in October. “Exclusive contracts between incumbent cable operators and owners of multiple-dwelling units have been a significant barrier to competition.”
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