Restrained Fight Expected On Cable Cap

RESTRAINED FIGHT EXPECTED ON CABLE CAP
[SOURCE: Technology Daily, AUTHOR: David Hatch]
The cable industry will mount a less extensive lobbying campaign to derail an effort by FCC Chairman Kevin Martin to cap the subscriber reach of systems than it did to rebuff his failed attempt at broader re-regulation. Chairman Martin is proposing allowing individual cable operators to serve no more than 30 percent of pay-television households. In 2001, the U.S. Circuit Court of Appeals for the District of Columbia overturned the 30 percent threshold after deciding there was not enough evidence to justify it. Kyle McSlarrow, president and chief executive officer of National Cable and Telecommunications Association, told reporters this spring that if the cap returns, it would face new legal challenges. Another reason for NCTA's measured response is that a cap only halts the growth of video subscribers through mergers and acquisitions. Even at 27 percent, Comcast could add 3 million video customers by purchasing small systems before hitting the benchmark. Also, the proposal would not bar Comcast or other operators from surpassing the 30-percent level by attracting new customers to existing services, nor would it prevent cable systems from acquiring non-video companies, such as cellular providers. The association has not considered the cap to be among its top policy priorities.
http://www.njtelecomupdate.com/2007/12/tame_fight_expected_on_cable_c.html