Court upholds new FCC video franchising rules

(6/27) A US appeals court in late June upheld new Federal Communications Commission rules designed to make it easier for companies such as AT&T and Verizon to get into the subscription television business. The US Court of Appeals for the Sixth Circuit turned down a petition by cable operators and municipal officials seeking to overturn the new regulations. The court found each of the four requirements in the FCC ruling was acceptable: the 90-day time frame is similar to other timelines, such as the 120-day period allowed to negotiate franchise adjustments, in federal law. Local rules mandating a quick build-out hinder competitive deployments desired by Congress in the Act, the court opined. The agency was reasonable in determining that local bonds or insurance fit within the 5% franchise fee cap, and that PEG requirements be equal to the current ones for incumbents, the court said. Local governments are expected to appeal the decision.
http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSWBT00930020080627