NTCA: Affordable video content will drive competition, broadband investment in rural markets

The National Telephone Cooperative Association (NTCA) says in a Federal Communications Commission filing that the ability for smaller telecommunications companies to get access to competitively-priced video content in rural areas will drive competition and new broadband investments. Although the NTCA's members serve small areas, they share the same concerns recently filed by a host Tier 1 telcos CenturyLink and Verizon that the FCC needs to keep content costs in check.

"The provision of video services is key to rural local exchange carriers' ability to deliver robust broadband services to consumers in high-cost areas," NTCA said in an FCC filing. "Indeed, the Commission has long recognized the linkage between video and broadband services. Access to video content at affordable rates and under reasonable terms and conditions is needed not only to generate greater video competition, but also to spur broadband investment in rural service areas." Given the costs of building out network facilities to support video and acquiring content, only 73 percent of respondents to an NTCA survey said they offer video services, down from 76.9 percent in 2013.