Regulations Should Reflect the Marketplace to Which They Apply

A bedrock principle of good government is that regulations should reflect the marketplace to which they apply. Accordingly, throughout my tenure at the Commission, I’ve emphasized the importance of updating our rules to reflect the modern video marketplace. This Report and Order does precisely that. More than twenty years ago, the FCC adopted a presumption that cable operators were not subject to effective competition. This meant that local franchising authorities could regulate the rates charged by an incumbent cable operator for basic-tier service unless the operator overcame the presumption by demonstrating that it was in fact subject to effective competition. This approach made sense in 1993. Over the past two decades, however, the industry has changed dramatically. New entrants have made major competitive splashes into the MVPD market. Given this profound transformation, we can’t keep living in the past. I therefore support our decision to adopt a presumption that there is effective competition among competing providers. This presumption far more accurately reflects the current state of the video marketplace than did its predecessor. I hope in the months to come we will continue to modernize our media rules. Whether we are regulating MVPDs, broadcasters, or other media entities like newspapers, our rules should reflect the competitive and technological conditions of today, not those of twenty or forty years ago.