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.
