[opendtv] New FCC rules for cable in apartment buildings

FOR IMMEDIATE RELEASE       News Media Contact:
October 31, 2007            Mary Diamond (202) 418-2388

FCC Adopts Rules to Increase Choice and Competition Among Video
Providers for Consumers Residing in Multiple Dwelling Units

Washington, DC - The Federal Communications Commission (FCC) today
adopted a Report and Order (Order) banning the use of exclusivity
clauses for the provision of video services to multiple dwelling units
("MDUs") or other real estate developments.  The Order finds that nearly
30% of Americans live in MDUs and these numbers are growing.

With this proceeding, the Commission is taking another step to foster
greater competition in the market for the delivery of multichannel video
programming.  These rules will increase choice and competition for
consumers residing in MDUs and other real estate developments.   In this
Order, the Commission prohibits the enforcement or execution of existing
exclusivity clauses and the execution of new ones by MVPDs subject to
section 628 of the Communications Act.  Specifically the Order finds
that:

o exclusivity clauses that bar competitive entry harm competition and
broadband deployment and can insulate the incumbent MVPD from any need
to improve its service.

o exclusivity clauses are widespread in agreements between MVPDs and MDU
owners.

o incumbent cable operators have increased the use of exclusivity
clauses in their agreements with MDU owners with the entry of LECs into
the video marketplace.

o the use of exclusivity clauses in contracts for the provision of video
services to MDUs constitutes an unfair method of competition or an
unfair act or practice under Section 628(b).

The Commission also adopted a Further Notice of the Proposed Rulemaking
(Further Notice) that seeks comment on whether we should take action to
address exclusivity clauses entered into by DBS providers, private cable
operators, and other MVPDs who are not subject to Section 628. The
Further Notice  also seeks comment on whether the Commission should
prohibit exclusive marketing and bulk billing arrangements.

Action by the Commission, October 31, 2007 by Report and Order (FCC
07-189). Chairman Martin, Commissioners Copps, Adelstein and Tate with
Commissioner McDowell concurring.  Separate statements issued by
Chairman Martin, Commissioners Copps, Adelstein, Tate and McDowell.

--FCC--

Media Bureau Contacts: Holly Saurer (202) 418-2120
                       John Norton (202) 418-2120
 
 
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