Ban On Exclusive Cable Deals By The Fcc

In the past the FCC has taken exclusive cable deals for community associations under advisement and has allowed them to occur. Their reasoning being that these exclusive cable television deals with condominiums promoted competition among the companies to obtain the exclusive service for a community resulting in better service and cheaper prices so that the cable company could retain their clients. It also was thought that the exclusive deals gave the unit owners leverage in negotiations for terms of the agreements.

However, on October 31, 2007, the FCC decided to take the opposite stance. Now the FCC feels that the exclusive cable deals have deprived the owners of choices and that the lack of competition had the opposite effect of the original intent. Owners were being charged more money for cable services and receiving less options for their money.

The hope is that this ban will create more competition among the cable providers resulting in lower cable rates. It is anticipated that this move will also assist minorities due to the disproportionate numbers who live in multi-unit dwellings.

This change also allows for phone companies that offer video services to tap into the condominium market. It is anticipated that this order will be heavily challenged in the near future by representatives of various interest groups, including cable operators.

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