Saturday, November 17, 2007

The Cable's Been Cut..... Finally, A Level Playing Field?

Head of Cable Lobby Condemns FCC Report

Oh, how shall I say this... what goes around comes around. While it is not exactly the same situation, hints of the 1974 Ma Bell divestiture which was enacted by Judge Harold H. Greene of the U.S. District Court in Washington, D.C. in order to prevent a monopoly on telephone service is coming, finally, to the cable industry as well.

Phone companies have been fighting tooth and nail for business for over twenty years with so many services being regulated. Before the break-up, customers had the luxury of having one bill for all their services. Notice how I say 'luxury'. In this day and age, if you have all your services on one bill, you are one of the few. But, you are one of the smartest consumers out there. For my clients that have all their services with one provider, rates are much more feasible and economical. Why go through the torment of having your long distance with one provider? Internet with another? And, local with someone else? I would certainly 'love' all the bills. Let's kill some more trees!

But, going back to the article. "Kyle McSlarrow, president and chief executive of the National Cable and Telecommunications Association" seems to think this is unfair and that numbers have been "manipulated". Mr. McSlarrow is also accusing FCC Chairman Kevin J. Martin of pressuring cable companies to offer 'a la carte' service. Telephone services do, why not cable?

Do they think they are above the strict regulations so many other industries face? Small business love the opportunity to compete, cable is trying to keep that from happening. Mr. McSlarrow then goes onto say how business models will be ruined. Well, it's your job to overcome the obstacles you face and make them into opportunities.

My last point is this:

"Last month, the FCC struck down the ability of cable companies to form exclusive contracts to serve apartment buildings."

If that does not scream monopoly at you, what will? The ability for companies to make proposals for service allows our free markets to work so the best possible rates are given to the consumer. Cable is using apartment buildings as fall backs.

In closing, we as consumers should welcome this. The saying "I have over 150 channels and nothing is ever on" should stop. We want to pay for the channels that we watch, not pay for a whole bunch of channels we have never even heard of... I love Hallmark cards, but I don't want to pay for the 35 cheesy movie channels they have..

My next entry will finish up my previous post about the top Carolina companies.

~The Guru

No comments: