Don't hold your breath that yesterday's FCC ruling will make it easier for the Baby Bells to enter the video delivery business.Along partisan lines, the FCC voted 3-2 to put new rules in place that will require local cable franchising authorities to act on applications for access to local rights of way within 90 days, and to act within six months on applications from other new competitors.
This ruling represents a direct threat to the cable companies, who will now face greater competition. What do you think the cable companies and the supporting organizations will do? Sue and drag out the process as long as possible -- similar to what the Baby Bells did for years with the Telecom Act of 1996.
What is the best economic solution? The Baby Bells may want to buy Echostar Communications (NASDAQ:DISH) and DirecTV Group, Inc. (NYSE:DTV). This way they could buy all the franchise rights in one shot and avoid having to approach thousands of towns and communities to get franchise rights, saving time and money.
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Reader Comments (Page 1 of 1)
12-21-2006 @ 2:17PM
FRANK DI PIETRO said...
RECENT REPORT BY UBS ANALYST ARYEH BOURKOFF SUGGESTS THAT AT&T MAY BUY DTV