FCC Wants To Close Program Loopholes

The Federal Communications Commission is considering closing a loophole that allows cable television operators to withhold sporting events and other popular programming that they own from rival providers such as satellite TV. FCC staff has prepared an order to eliminate the loophole and plans to send it to the agency's five commissioners on Wednesday. It was not immediately clear when the commissioners will vote on the order. The order comes as the commission begins its regulatory review of Comcast's proposal to buy a controlling stake in NBC Universal from General Electric Co. Although the two matters are separate, some analysts expect the FCC to close the terrestrial loophole for Comcast as a condition of regulatory approval for that deal. Cable TV operators including Comcast Corp. and Cox Communications Inc. have relied on the loophole to deny programming to competitors such as DirecTV Inc., Echostar Corp.'s Dish Network and AT&T Inc. U-Verse video service.