FCC opens video inquiry

The Federal Communications Commission today said it will conduct an assessment of competition in the video market, to include the impact of Internet-based video and IPTV.

The FCC issued a Notice of Inquiry for its Annual Assessment of the Status of Competition in the Market for the Delivery of Video Programming, a Congressionally mandated report. The NOI indicated that, among other things, the commission will look at the integration of programming distributors and programming services, and at how video services are evolving elsewhere in the world.

The two Democrats on the FCC individually issued statements reflecting their desire for the annual report to go farther than previous reports in determining the market status.

“In the past, I have expressed concern with the analytical depth of some of the information that the Commission has presented,” said Commissioner Jonathan Adelstein. “I voted to approve the 2005 Report because it was a promising improvement over previous years, as it attempted to provide at least a semblance of thoughtful analysis. Today’s notice, which seeks information for the 2006 Report, is a comprehensive and appropriate way to start. It contains meaningful questions which, if answered fully, would be useful for the Commission, the Congress and the public.”

Commissioner Michael Copps said the FCC must be proactive in seeking information and needs to look beyond the availability of competition.

“While consumers have access to more channels than ever before, it does not follow that they have the power to reject objectionable programming or keep at bay rates that are rising at two and a half times the rate of inflation,” he said. “Different interests cite different reasons for these problems, but we owe it to consumers and to Congress to get to the bottom of these questions in the Report that will follow from today’s Notice of Inquiry.”

Walter McCormick, president and CEO of USTelecom, said telecom service providers welcome the inquiry.

“As we have seen in many parts of the country, where telecoms have entered the video market they have offered high quality, innovative services at lower prices,” he said in a prepared statement. “In reviewing the status of competition in the video market, the Commission will clearly see that the existing, out-dated franchising system is an unnecessary barrier to entry for service providers seeking to offer consumers options to cable. We appreciate the Commission’s attention to this important issue and we will continue to strongly advocate for necessary reforms to bring more competition, innovative services and lower prices to the video market.”