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from: Reuters

FCC backs away from cable regulation plan

By Reuters
Published: November 27, 2007, 7:30 PM PST

WASHINGTON--The Federal Communications Commission on Tuesday backed away from a proposal by the agency's chairman that would open the door to broader regulation of cable TV operators.

The FCC balked at a finding proposed by FCC Chairman Kevin Martin that cable companies' subscribership levels had risen enough to justify broad regulation of the industry, agreeing instead to postpone a decision and approve more limited restrictions on the industry, Martin said.

Martin said a majority of the FCC's five commissioners were in agreement on the compromise. A formal vote on it was scheduled for sometime in the evening.

Martin said the agreement includes a measure that would limit the rates that cable operators can charge to lease spare channels to independent programmers.

The agreement came after a day of tough negotiations that began after Martin was unable to get a majority of the five commissioners to support the proposed finding.

Martin, a Republican, had earlier proposed that, as part of an annual report on video competition, the agency issue a finding that U.S. cable subscribership figures exceeded 70 percent in areas where the service is available.

Under U.S. law, that finding would give the agency more authority over companies such as Comcast and Time Warner Cable.

But the idea ran into resistance from Martin's two fellow Republicans on the commission. They questioned the way Martin had arrived at the 70 percent figure, saying it conflicted with previous reports on the issue. The FCC's two Democratic commissioners also had reservations.

Beyond doubts over the data, many Republicans, including lawmakers who have written to the FCC, have fundamental objections to imposing new federal regulations on an industry they say is competitive.

The two Democrats on the FCC, meanwhile, had come under pressure from consumer groups, who support Martin's 70 percent finding and say previous estimates undercounted the number of cable subscribers.

Under the compromise, Martin said, the FCC would vote to collect more data from the cable operators. He said that "would be a reasonable step for the commission to take," Martin said.

Martin has criticized the cable TV industry over steeply increasing rates, over programming that some viewers find offensive and its reluctance to let customers choose individual channels on an a la carte basis.

In his comments to reporters on Tuesday, Martin said he had not given up on the data he originally cited in the report, gleaned from a communications industry trade publisher, that put U.S. cable subscribership at 71.4 percent.

However, the idea that the industry had surpassed 70 percent subscribership surprised some commissioners because the number conflicted with previous FCC reports on video competition, which estimated cable subscribership around 60 percent.

The cable industry's main trade group, the National Cable & Telecommunications Association, has disputed the 71.4 percent figure, saying Martin's proposal is designed to pressure the industry into adopting the a la carte programming he favors.