In 2007, the FCC issued an order prohibiting exclusive contracts between multichannel video service providers and the owners of buildings with multiple dwelling units, like apartments or condos. Such contacts, the FCC reasoned, prevented effective competition in video service from new competitors, such as satellite and telecom video offerings. The contracts also gave cable companies a leg up in high-speed Internet service, with the opportunity to offer bundled packages of high-speed Internet and video service.
Fortunately for consumers, last week the U.S. Court of Appeals for the D.C. Circuit upheld the FCC's order prohibiting the agreements, meaning that apartment and condo dwellers may soon see the benefits of competition in video and high-speed Internet service. As MediaPost reported:
The ruling could go a long way towards creating more options for some apartment building tenants. Of course, apartment buildings are only one small component of the bigger broadband picture, but at least it's a start.
In particular, this will help companies offering fiber-to-the-home services bring new options to consumers. Since effective competition is critical to the "bigger broadband picture," this is a good start indeed.
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