FCC approves eases rules on acquisition of smaller carriers, cable TV companies likely to profit

Federal Communications Commission (FCC) has eased the cable television providers’ way for going deeper into the consumer market. The Commission waived off the rules that bounded the cable operators to seek reviews and thereafter approval of local regulators for acquisition of smaller CLECs, competitive local exchange carriers.

“Today’s FCC action was helpful to cable companies and CLECs if interested in deals, which could help cable make further inroads in the telco business service market, as it will significantly reduce the universe of potential (regulatory) reviews,” said Stifel Nicolaus analyst David Kaut in a report.

The ease in rules and regulations will allow the cable TV companies to expand their consumer market and provide the standard of service deeper into the public.

Cable TV networks have been making money on licensing their telephone and data packages. However, they also pose a potential threat to the businesses of the likes of Verizon Wireless, AT&T and Sprint by offering such services.

The ease in rules will certainly help wireless cable providers in bring their networks up to speed and fair competition in the market. FCC is confident that the new alteration will certainly not affect the quality of service.

“By bringing the review of cable-CLEC transactions in line with that of other similar transactions, while maintaining our own review and an important role for local authorities, we ensure that transactions that promote competition and expand broadband service deliver benefits to consumers more quickly,” FCC Chairman Julius Genachowski said in a statement.

Cable TV companies churned out $4.8 Billion last year from serving phone and internet services to consumers, which is also most double of what they produced in 2008.

The major companies that are likely to benefit from the new regulations are Comcast, Time Warner Cable and Cox Communications that might acquire the likes of Time Warner Telecom and Cbeyond.

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Posted by Usman Khalid on Sep 18 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.