FCC Draws Praise for CLEC/Cable Decision

American Cable Association, Broadband Coalition says move was in public interest

By John Eggerton -- Broadcasting & Cable, 9/17/2012 7:46:02 PM

The FCC got some warm fuzzies from the American Cable Association and the Broadband Coalition for its decision to no longer enforce its rule against cable operators buying more than 10% or having a managerial role in competing local exchange carriers (CLECs).

"ACA is pleased with today's FCC decision sought by the National Cable & Telecommunications Association because Section 652 acted to inhibit transactions between cable operators and CLECs," said ACA President/CEO Matt Polka, "transactions which have the potential to bring substantial benefits to consumers and further the public interest, including in smaller markets served by smaller providers."

"Everyone wins when there is more competition in the marketplace," sad Broadband Coalition spokesman, former congressman Chip Pickering. "This decision today strengthens the position of broadband providers to compete with ILEC services [incumbent telecom companies Verizon and AT&T]. When competition thrives in the broadband marketplace, innovations occur benefiting businesses of all sizes... By opening the door to stronger more expansive companies in the broadband market, technologies like the cloud become more affordable and available to small and medium businesses. The FCC's actions today are a true win for the businesses looking to take advantage of the technologies of tomorrow."

Verizon, which could face stronger competition for business services from merged cable/CLEC combos, declined comment.