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News Analysis
FCC's Telco Vote Could Help HDTV
The agency votes to make it easier for the telephone companies to launch TV services.
By Phillip Swann

Washington, D.C. (December 21, 2006) -- The FCC yesterday approved regulations that will make it easier for telcos such as AT&T and Verizon to launch new TV services.

The 3-2 vote, which imposed restrictions on local governments to delay franchise agreements for the telcos, could be a huge victory for High-Definition TV owners. With more competition from the telcos, cable and satellite operators will likely have to accelerate their addition of high-def channels and related services.

AT&T, for instance, is now offering 27 HDTV channels, more than any other TV provider except for EchoStar, albeit in just two markets (San Antonio and Houston.) If AT&T is able to offer its HD service in more cities, it will push the cable operators there to quickly expand their HD lineups and improve service.

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And that's what three FCC commissioners had in mind when they approved the controversial regulations yesterday.

Before the vote, FCC Chairman Kevin Martin released a new study showing that cable prices have doubled in the past 10 years.

The new FCC rules say local governments must act within 90 days on new applications for local "rights-of-way" and other access needed to install the telco TV service. In some markets, local governments have delayed action on the requests, due partially to pressure from cable operators.

National Cable & Telecommunication Association CEO Kyle McSlarrow blasted the vote yesterday, saying it gives the telcos an unfair advantage.


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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

Click TVPredictions.com to read more news and features on TV technology. 
 

 
 
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