Chris Blount
08-27-04, 07:09 AM
In its second round of collecting comments on competition in the pay-TV marketplace, the Federal Communications Commission was told by satellite TV interests that a truly competitive business isn't yet in place for consumers.
In its FCC comments filed this week, DirecTV disputed cable industry claims that the the pay-TV business is competitive because the nation's two DBS operators have more subscribers than most cable operators. "All this may be true, but it is - for practically every purpose of interest to the commission - irrelevant," the satellite TV operator said.
When discussing market power, the number of subscribers a pay-TV operator has nationwide is not material, the company said. "Although DBS operators may collectively have a 25 percent share of total MVPD (multichannel video programming distribution) subscribers nationwide, the relevant fact is that in almost all of the country's most populous - and important - local markets, cable operators continue to enjoy dominant market share," DirecTV said.
EchoStar told the FCC that effective competition has not yet been achieved in the pay-TV business.
"Given the current state of cable's market power, the industry's argument - that increasing competition means that several existing pro-competition regulations are no longer necessary - is misplaced. In fact, cable has it exactly backwards," EchoStar said. "Contrary to cable's arguments, rolling back regulations designed to spur competition will have the predictable result of reversing what slight gains may already have been achieved and cementing cable's ability to continue to raise its prices."
Cable interests argued that competition is alive and well within the pay-TV business. The National Cable and Telecommunications Association told the FCC that cable's market share continues to decline, from 91 percent in 1994 to 73 percent today.
"The marketplace realities are inescapable in this proceeding: Competition for customers in the delivery of video programming is robust and more intense than ever," NCTA said.
The FCC, which obtained the comments this week, will use the filings for a report it will submit to Congress this winter.
http://www.skyreport.com (Used with permission)
In its FCC comments filed this week, DirecTV disputed cable industry claims that the the pay-TV business is competitive because the nation's two DBS operators have more subscribers than most cable operators. "All this may be true, but it is - for practically every purpose of interest to the commission - irrelevant," the satellite TV operator said.
When discussing market power, the number of subscribers a pay-TV operator has nationwide is not material, the company said. "Although DBS operators may collectively have a 25 percent share of total MVPD (multichannel video programming distribution) subscribers nationwide, the relevant fact is that in almost all of the country's most populous - and important - local markets, cable operators continue to enjoy dominant market share," DirecTV said.
EchoStar told the FCC that effective competition has not yet been achieved in the pay-TV business.
"Given the current state of cable's market power, the industry's argument - that increasing competition means that several existing pro-competition regulations are no longer necessary - is misplaced. In fact, cable has it exactly backwards," EchoStar said. "Contrary to cable's arguments, rolling back regulations designed to spur competition will have the predictable result of reversing what slight gains may already have been achieved and cementing cable's ability to continue to raise its prices."
Cable interests argued that competition is alive and well within the pay-TV business. The National Cable and Telecommunications Association told the FCC that cable's market share continues to decline, from 91 percent in 1994 to 73 percent today.
"The marketplace realities are inescapable in this proceeding: Competition for customers in the delivery of video programming is robust and more intense than ever," NCTA said.
The FCC, which obtained the comments this week, will use the filings for a report it will submit to Congress this winter.
http://www.skyreport.com (Used with permission)