2008 Woodie Awards
FCC ditches exclusive cable deals
Ruling eliminates contracts with apartment complexes, sparks future competition
By: Meredith Mayberry
Issue date: 11/5/07 Section: News
- Page 1 of 1
Students soon could have more choices when it comes to picking a company to buy their TV services.
The Federal Communications Commission has approved a rule that will ban individual cable companies from having exclusive contracts with apartment complexes.
The rule, handed down last Wednesday, will allow for more competition among cable companies, said Rick McGuirk, operations manager of United Apartments, 4175 E. Bluegrass Road.
"Choice is always better," McGuirk said. "Competition is important in the marketplace."
The change will give tenants "a la carte" plans. They will have the power to choose which individual channels or groups of channels they wish to purchase, according to the New York Times.
Charter Communications, a local cable provider, is not convinced the decision will benefit consumers, according to a statement released by Timothy Ransberger, Charter's vice president of government relations.
"The FCC decision eliminates any incentives for operators like Charter to continue to invest in lower-income or senior-citizen multiple dwelling units," Ransberger said. "It harms the very consumers it intended to help."
Ransberger said the change also leads to uncharted legal territory for the FCC.
"By immediately terminating existing exclusive access agreements, the FCC is undermining the substantial investments that Charter and others have made," he wrote.
United Apartments, previously contracted exclusively with Charter, now will be open to other cable providers. McGuirk said he does not predict many of his tenants will be looking for business outside of Charter.
"I haven't had any complaints with our current provider," McGuirk said. "Plus, Charter Communications is pretty much the only company around."
The new rule will affect markets across the country, opening up competition and opportunities for residents in apartment complexes. The competition could significantly lower cable prices for tenants, according to the New York Times.
Melinda Prout, manager of Park Place Apartments, 1401 E. Bellows St., said she doesn't anticipate her tenants straying from the complex's current provider, Charter.
"I think everyone's happy right now. Our provider gives bulk rates so it reduces the expense." she said.
Prout said the price reduction is a perk for people in apartment communities.
"It's like going to Gordon's Food Service instead of Meijer," she said. "In the end, it's cheaper."
news@cm-life.com
The Federal Communications Commission has approved a rule that will ban individual cable companies from having exclusive contracts with apartment complexes.
The rule, handed down last Wednesday, will allow for more competition among cable companies, said Rick McGuirk, operations manager of United Apartments, 4175 E. Bluegrass Road.
"Choice is always better," McGuirk said. "Competition is important in the marketplace."
The change will give tenants "a la carte" plans. They will have the power to choose which individual channels or groups of channels they wish to purchase, according to the New York Times.
Charter Communications, a local cable provider, is not convinced the decision will benefit consumers, according to a statement released by Timothy Ransberger, Charter's vice president of government relations.
"The FCC decision eliminates any incentives for operators like Charter to continue to invest in lower-income or senior-citizen multiple dwelling units," Ransberger said. "It harms the very consumers it intended to help."
Ransberger said the change also leads to uncharted legal territory for the FCC.
"By immediately terminating existing exclusive access agreements, the FCC is undermining the substantial investments that Charter and others have made," he wrote.
United Apartments, previously contracted exclusively with Charter, now will be open to other cable providers. McGuirk said he does not predict many of his tenants will be looking for business outside of Charter.
"I haven't had any complaints with our current provider," McGuirk said. "Plus, Charter Communications is pretty much the only company around."
The new rule will affect markets across the country, opening up competition and opportunities for residents in apartment complexes. The competition could significantly lower cable prices for tenants, according to the New York Times.
Melinda Prout, manager of Park Place Apartments, 1401 E. Bellows St., said she doesn't anticipate her tenants straying from the complex's current provider, Charter.
"I think everyone's happy right now. Our provider gives bulk rates so it reduces the expense." she said.
Prout said the price reduction is a perk for people in apartment communities.
"It's like going to Gordon's Food Service instead of Meijer," she said. "In the end, it's cheaper."
news@cm-life.com
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