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October 24, 2007

Verizon, AT&T and RCN winners if FCC bans exclusive contracts in apartment buildings.

Analysis of: Martin:Time to Kill Exclusive Cable MDU Deals | dtv.broadcastnewsroom.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Deborah Lathen
President, Lathen Consulting, LLC
Implications: Verizon, AT&T and RCN are behind a push at the FCC to end exclusive contracts in apartment buildings which both cable companies and landlord's have found to be quite lucrative.

Analysis: Chairman Martin announced last week his intentions to gain support at the Comnission for an Order that would require ban exclusive contracts in aparrtment buildings.  The FCC Chairman believes that apartment dwellers are being deprived of competition.  Such a ban would be felt by cable companies in major markets like New York and Chicago where there is high percentage of apartment dwellers. 

In the 1990s RCN tried to move the Commission in this direction but failed. The outcome could be different now that Verizon is pushing very hard for an elimination of the ban.  Once in the door Verizon would push FIOS and its full bundle cutting into cable profits on Internet, telephone and video.

Expect push back from landlords and the cable companies, but put this one on your radar screen.



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