ACA Petitions FCC to Allow Market Forces to Govern the Price of Retransmission Consent; ACA Says Broadcasters Charging Consumers Monopoly Rents.

PITTSBURGH -- Any consumer knows it pays to shop, because competition lowers prices. But tell that to big broadcasters aiming to charge consumers monopoly rents.

Today the American Cable Association (ACA) asked the Federal Communications Commission (FCC) to allow an unfettered market to determine the price of retransmission consent. Specifically, ACA asked the FCC to adjust broadcast exclusivity and retransmission consent regulations to reflect marketplace changes for broadcasters, consumers and cable companies.

In a Petition for Rulemaking filed today, ACA asked the FCC to change current broadcast regulations to achieve the following results:

--Maintain broadcast exclusivity for stations that elect must-carry or that do not seek additional payment for retransmission consent.

--Eliminate exclusivity when a broadcaster elects retransmission consent and seeks additional payment for carriage.

--Prohibit any party, including a network, from preventing a broadcast station from granting retransmission consent.

Every three years broadcasters can choose "must-carry" (local television signals must be carried by cable companies) or "retransmission consent" (broadcasters prohibit cable from carrying the signals unless cable pays for the right to carry it). But broadcasters use current FCC rules to demand payment for carriage and at the same time rely on other FCC rules to prevent consumers and their cable providers from shopping for lower-cost alternatives. Without reform, ACA reports this year's broadcast cash demands threaten to add more than $860 million to the cost of basic cable.

"Broadcasters are using regulations and exclusive contracts solely to extract higher prices. That hurts consumers, and the FCC should act," said Matt Polka, president and CEO of ACA. "The proposed adjustments will exert market discipline on the price of retransmission consent for independent cable companies, thereby ensuring more choice and lower costs for consumers while maintaining exclusivity for those stations that desire it."

ACA's filing asks the FCC to reform retransmission consent, network non-duplication and syndicated exclusivity regulations that further bolster broadcasters' unfair pricing practices.

"The marketplace has changed significantly since retransmission consent laws were established in 1992," said Jim Gleason, chairman of the ACA and president of New Wave Communications. "As a result, independent cable and our customers are facing unprecedented fees. It's time the FCC or Congress takes action to ensure negotiations occur in a competitive market by eliminating broadcasters reliance on antiquated regulations that inflate the price of retransmission consent. Broadcasters should not be able to use FCC regulations to create a monopoly."

ACA's petition to the FCC can be viewed at www.americancable.org.

About the American Cable Association

Based in Pittsburgh, the American Cable Association is a national association of independent cable television businesses and owners of smaller cable systems that work together to ensure the future competitiveness and viability of their businesses. Association members primarily serve customers in smaller markets and rural areas across America. The Association represents independent cable businesses through active participation in the regulatory and legislative process in Washington, D.C. ACA's nearly 1,100 member companies serve more than 8 million subscribers in all 50 states. For more information, visit www.americancable.org.