Consumers had a win in the courts on Friday when the 6th Circuit Court of Appeals upheld a 2007 FCC Order streamlining the local franchising process for telecom companies trying to compete with cable companies.

As USTelecom CEO Walter McCormick said in a press statement Friday,

Before the FCC’s Order, Americans’ choice for video services was artificially limited to incumbent cable providers, despite the billions of dollars telecom companies have invested in networks to provide a competitive alternative. But as the FCC has found, having that option makes a real difference: consumer prices are 17 percent lower in markets with a second facilities-based video provider. This decision—and the Order it upholds—confirms the FCC’s action, and will allow telecom companies to continue to bring those savings to consumers across the country by lowering the barriers facing new competitors.

The FCC Chairman has long recognized that competition with cable offerings provides the best solution to rising cable prices, and that lowering hurdles for telecom companies to invest in video helps increase the availability and capacity of broadband networks. The court’s decision provides invaluable support for this vital objective and USTelecom and our member companies will continue the work to achieve the goals of increased investment in broadband networks and a level regulatory playing field.

This entry was posted on Tuesday, July 1st, 2008 at 9:48 am and is filed under Politics .