Consumers for Cable Choice Asks FCC to Correct 5 Fatal Flaws That Handcuff American Consumers to Outdated Regulations

Consumers for Cable Choice Asks FCC to Correct 5 Fatal Flaws That Handcuff American Consumers to Outdated Regulations

INDIANAPOLIS, Sept. 19 /PRNewswire/ -- Five fatal flaws within current U.S. cable television regulation are keeping profound social and economic opportunity from American consumers, and the Federal Communications Commission (FCC) should take corrective action immediately, asserts national advocacy group Consumers for Cable Choice.

"Current cable regulations are so seriously outdated and flawed that they handcuff consumers and keep them from relevant, beneficial video applications for their homes and businesses," said Robert K. Johnson, president of the Consumers for Cable Choice, responding to the FCC's call for input on its annual video competition report. The complete filing is available at http://www.consumers4choice.org/.

"The benefits of broadband go far beyond our current understanding of cable television. True broadband deployment will revolutionize the delivery of social services, education and medical consultations," Johnson said. "All that's needed to encourage this technology is an open market that will allow the American entrepreneurial spirit to take charge."

The FCC's five fatal flaws:

1. Rising rates and stagnant quality. In the past decade, cable rates have risen 86 percent -- far greater than the rate of inflation. At the same time, consumer satisfaction indexes indicate that many consumers remain dissatisfied with cable service, and innovation has been largely nonexistent.

2. Barriers to competitors' entry. Because cable franchises arose under a regulatory paradigm where cable's monopoly status was assumed, potential competitors are unable to provide an effective and timely antidote to the cable industry's spiraling rate hikes and historically inferior service quality. Technology exists today that could provide consumers with superior choices, but it is not reaching the market. To offer service nationally, competitors must obtain franchises in approximately 33,000 localities through a costly, time-consuming process.

3. Disproportionate impact on small business. Many small businesses cannot obtain cable service because their sites in office buildings, business parks and strip malls are not wired for cable. Others must pay substantial installation charges to receive the same level of service as residential customers. The result is a dichotomy where small businesses have multiple voice and data options, but few or none in video options. The impact has a significant ripple effect on America's economic productivity. The U.S. has fallen to 16th in the world in broadband penetration rates. Because they cannot access interactive video technology, small U.S. businesses cannot fairly compete with counterparts in Asia and Europe who are currently using technologically advanced networks to reach customers and suppliers.

4. Limited programming access for special interest and minority consumers. Cable's spectrum limitations keep valuable programming from special interest and minority markets. Only those willing to pay a substantial premium can access additional channels and services of interest, if they are available at all. Broadband-based networks offer the promise of substantially more programming options for these important markets. For instance, consider the nation's fastest growing demographic segment -- the Latino market. Many cable providers make available only one or two Spanish- speaking networks, and often no English-speaking Latino networks. Consumers have no real option for other service. With broadband technology, the traditional cable line-up could expand ten-fold. Moreover, this increased programming space will open the door for more creativity and innovation as new channels and applications emerge. The same dynamic is in play for other minority groups and special interest groups.

5. Technological paralysis. The stagnant cable marketplace tolerates mediocrity and stifles innovative advancement. As other countries make significant advances in bringing interactive video applications to residences and small businesses, U.S. ingenuity sits idle. This is not simply a matter of more channel options for passive viewing, although that has merit in our diverse culture.

About Consumers for Cable Choice

Headquartered in Indianapolis, Ind. Consumers for Cable Choice is a national alliance of consumer advocacy groups, private citizens and others who are committed to promoting maximum choice for consumers in cable, video and broadband services. Its mission is to actively remove the regulatory roadblocks that stand between today's monopolies and reformed government policies that open the channels for fair competition. Consumers for Cable Choice uses a combination of education and grassroots advocacy to impact change, which will result in a deregulated and pro-consumer market that stimulates fair price, more choices and better service options in the cable television industry. President Robert K. Johnson has been advocating for policies that benefit residential and small business consumers for more than 20 years. To learn more, visit http://www.consumers4choice.org/.

Media Contacts:

Robert Johnson Cheryl Reed or Amy Zucker Consumers for Cable Choice Synergy Marketing Group, Inc. (317) 885-0097 (317) 205-9690 johnson@consumers4choice.orgcherylreed@synergy-mg.com

Source: Consumers for Cable Choice

CONTACT: Robert Johnson of Consumers for Cable Choice, +1-317-885-0097, johnson@consumers4choice.org ; or Cheryl Reed, cherylreed@synergy-mg.com , or Amy Zucker of Synergy Marketing Group, Inc., +1-317-205-9690

Web site: http://www.consumers4choice.org/

NOTE TO EDITORS: To schedule a media interview with Mr. Johnson, contact Cheryl Reed or Amy Zucker at +1-317-205-9690.

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