FCC WEIGHS IMPOSING ITV LIMITS ON ENTIRE CABLE INDUSTRY
FCC is considering proposed rulemaking that would regulate interactive TV (ITV) services carried by all cable operators, knowledgeable sources confirmed Tues. Proposed regulations would be likely to ban all cable systems offering interactive services from blocking ITV triggers from rival content providers, similar to ITV conditions that FTC recently imposed on AOL’s pending purchase of Time Warner (TW). But sources said FCC rules could go further than FTC merger conditions, prohibiting cable operators from favoring their own content by caching it on local servers or sending it at higher data speeds than content from unaffiliated providers. “I'm sure they're talking about all sorts of things,” said source who declined to be identified.
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Spokeswoman for FCC Cable Bureau declined to comment on draft notice of proposed rulemaking (NPRM), which is circulating on Commission’s 8th floor for approval. But sources said new regulatory thrust was joint effort of Cable Bureau and Office of Plans & Policy, which have formed task force to tackle issue. Proposed rules grow out of agency’s lengthy review of AOL-TW deal, which Disney and other critics claim could consolidate control of nascent ITV market in one huge company. They also are result of FCC’s parallel inquiry on cable open access, which asked several pointed questions about ITV.
NCTA officials, taken by surprise by FCC’s rulemaking, declined to say much about what Commission was considering. But, already alarmed that FTC’s open access conditions for AOL-TW merger could become standard for entire cable industry, they were trying to block ITV effort as too much, too early. At very least, they hoped to water down draft NPRM into less urgent notice of inquiry (NOI). “Our view is pretty clear,” NCTA spokesman said. “It’s premature at best to regulate a market that hasn’t even been established yet.”