Cable stocks were on the upswing yesterday after FCC commissioners voted against Chairman Kevin Martin’s proposal to give the FCC more power to regulate the cable industry.
FCC commissioners voted against Martin’s plan to use the “70/70” rule, which would have allowed Martin to push through some of his pet projects, such as the a la carte service model.
The 70/70 rule dates back to the Communications Act of 1984. Under the 70/70 rule, if the FCC finds that cable service is available to 70 percent of households, and that 70 percent of those homes subscribe, then the FCC can "promulgate any additional rule necessary to provide diversity of information sources."
Comcast’s stock went up to $19.97 on Wednesday and closed at $22.47 before dropping to $21.47 late this morning. Time Warner Cable’s stock increased to $25.55 on Wednesday and was trading at $25.91 at mid-morning today. Charter and Cablevision also saw increases in their stock prices on Wednesday.