http://www.washingtonpost.com/wp-dyn/content/article/2007/10/30/AR2007103002042.html?wpisrc=newsletter
[b]FCC Ready to Ban Exclusive Cable Contracts[/b]
The FCC is looking to ban exclusive contracts to subdivisions and apartment buildings, to allow for competition in these areas. They would go in an negate any existing contracts that are in place now.
At first glance, I am inclined to say the competition would be good for all of us. Taking a closer look though and you see HOW the exclusive contracts came about. No one else WOULD incur the expenses to run the cable to these areas, so in exchange for taking on the costs, the cable companies get an exclusive right to that segment for an extended amount of time, and a very few are indefinite.
Does the US Government have the legal ability to interfere with legally binding contracts?
Will this slow NEW networks being set up because of the costs involved, if the providers can not get the exclusive deal?
If the US Government does interfere, should the cable companies be reimbursed for part of their expenses for running the network?
[i]”The commission can change its mind, but it’s a bad precedent to let the government undo contracts because of changes in public policy,” said Daniel Brenner[/i]