FCC Issues Ruling on Access to Local Cable Sports Channels

WASHINGTON: The Federal Communications Commission (FCC) has voted to prevent cable operators from blocking rival platforms access to their regional sports networks.

Upstart platforms like Verizon and AT&T, as well as satellite services DIRECTV and DISH, have taken issue with cable giants like Comcast and Cablevision, maintaining that they have withheld their own local sports networks from rival services in a bid to gain a competitive advantage. While federal law does require platforms to offer access to their own channels to other services at reasonable rates, there is a so-called "terrestrial loophole"—some platforms have taken the view that local feeds carried over cable lines—and not over satellite—can be exempt from FCC law. In a 4-1 vote, FCC commissioners today concluded that withholding regional sports programming violates the Cable Act and is anti-competitive.  

Cablevision, responding to the FCC ruling, said: "While we find the legal basis for the decision unfounded, we are pleased that the FCC recognized the value of Cablevision’s local programming strategy and investments. Verizon and AT&T will not receive an FCC bailout that will allow them to capture News 12, MSG Varsity and other programming that we have developed for our customers. We are also pleased that despite the phone companies’ overwhelming lobbying effort, the FCC has ensured a complaint process.  If the phone companies complain that they are unable to compete, we are confident that we can prove that it is for a variety of reasons, none of which have to do with HD sports programming. Verizon and AT&T do not need a regulatory bailout in order to compete.” 

Verizon hailed the decision today. The telco, which competes with Cablevision with its FiOS TV platform, filed a program access complaint against Cablevision in July over access to high-definition versions of regional sports programming the cable company controls in New York and parts of New Jersey and Connecticut. Kathleen Grillo, Verizon’s senior VP of federal regulatory affairs, stated: "This is a big-time victory for television sports fans.  The FCC’s decision to make must-see regional sports programming, including high-definition feeds, presumptively available to competitors, puts viewers in the driver’s seat. This ruling means that consumers will no longer have to stick with their incumbent cable provider in order to watch local teams in high definition."

Satellite giant DIRECTV also celebrated the FCC decision, noting: "The FCC’s order today eliminating the terrestrial loophole is a big win for consumers and fair competition in the marketplace. We vigorously applaud the FCC for recognizing that withholding cable-owned regional sports networks from non-cable competitors significantly hinders competition and is anti-consumer. We are looking forward to offering DIRECTV customers the local sports programming they have been denied for so many years."