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Ear to the Ground

FCC Rules in Favor of Telephone Companies

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Posted on Dec 21, 2006

The Federal Communications Commission ruled along party lines on Wednesday to severely limit local governments’ ability to regulate their cable markets. The decision will allow telephone companies greater freedom to compete with cable by offering television services, but Democrats on the panel cautioned that the FCC had overstepped its mandate.


Washington Post:

The new rule reflects the intensifying battle between the phone and cable industries over who will control distribution of video, voice and Internet access in an increasingly wired country. But the telephone industry’s victory could prove temporary because opponents say the measure will almost certainly be challenged in court.

The FCC voted 3 to 2 along party lines to change how local officials award television franchises to eliminate what Republican supporters said were unreasonable demands and delays.

The measure requires local regulators to rule on franchise applications within 90 days for companies such as Verizon Communications and AT&T that have wires in place. It also bars local officials from requiring that companies provide TV service to everyone in a jurisdiction and prevents them from demanding fees or in-kind contributions exceeding 5 percent of the television revenues.

But the commission’s Democrats warned that the FCC, by exceeding its legal mandate, would face time-consuming challenges from opponents, including cable companies and local officials angered by what they say is a preemption of their authority.

“The end result will likely be litigation, confusion of the process and a certain amount of chaos,” Commissioner Jonathan S. Adelstein said. He questioned the claim that local officials have unreasonably refused applications, saying the FCC had not cited a single instance in which a franchise was being unduly delayed or held up because of demands for exorbitant fees or concessions.

“The majority simply accepts in every case that the big phone companies are right and the local governments are wrong,” Adelstein said.

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By Jon B, December 21, 2006 at 8:23 pm Link to this comment
(Unregistered commenter)

When Michael Powell, son of former Sec of State Colin Powell, was a frequent quest of lavish parties hosted by cable companies, decisions made by Michael Powell was overwhelmly in favor of cable companies. As a result of regulatory hurdles, phone companies didn’t invest in fiber optic. Today, US of A is ranked 16th in the world measured by number of households using fiber optic cable.

Let the market force to pick winners. Regulatory agencies are influenced by lobbysts and know nothing about competition because those who run these agencies are lawyers, not businessmen.

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By mite, December 21, 2006 at 1:40 pm Link to this comment
(Unregistered commenter)

I always say that Government fail/betray the citizens of this Republic.

“All that is necessary for evil to triumph is for good men to do nothing.” Edmund Burke, 1729-1797

“It could probably be shown by facts and figures that there is no distinctly native American criminal class except Congress”. Mark Twain 1885

The Bill Of Rights of The United States of America

Amendment 1: Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridgeing the freedom of speech, or of the press, or the right of the people peaceably to assemble, and to petition the Government for a redress of grievance.

So the FCC has granted the phone companies what they wanted again, whats new. Who do you think control the FCC, Congress? In your dreams citizens.

Do you want to get back control of this monarch of a Government? Well first you need to understand the difference between Democracy and Republic. Then you need to read the U.S. Constitution, Bill of Rights and to further understand our forefathers of this Republic read the Federalist Papers. http://www.devvy.com

According to the Constitution the states legislature will appoint their Senators to represent the States interests. But along came another Lie the 17th Amendment. The states lost their suffage rights, no longer represented in Washington D.C.- Congress. The 17th Amendment; like the 16th Amendment (IRS) was never ratified by the States by a 3/4 majority. Have you ever read history how our government has grown bigger because of the Federal Reserve Act of 1913. Every action of the Senate is invalid since 1913.

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By Leon loves pictures, December 21, 2006 at 6:16 am Link to this comment
(Unregistered commenter)

What a bloame for FCC. I think the FCC was blackmailed to make a propper decidion in favor of the phone companies.

Thank you for sharing this story with me !

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