Telco-Cable Advertising Spat

March 28, 2006

Susan Campbell's article from today explains what's behind the conflict between AT&T and cable providers Comcast and Time Warner Cable -- see "AT&T Fires Off FCC Letter Accusing Cable Operators of Thwarting Public Debate."

AT&T has been running issue ads trying to gain support for legislation that would make it easier for telcos to bypass local franchise requirements and�roll out video services in communities nationwide. Comcast and Time Warner Cable have refused to run the ads, so AT&T is accusing them of trying to stifle public debate.

It's hard for me to�feel strongly�that there's a good guy in this conflict. Seems to me that both the telcos and the cablecos have a long record of getting away with providing minimal service and pulling any strings possible to stifle competition. ("We don't care. We don't have to. We're your phone company.")

That said, all in all it probably is better if consumers have more than one choice for local video service. In fact, recent research indicates that increased competition in Texas is resulting in lower rates for consumers. (See my previous entry, "Survey Reports Results of Texas TV Competition.")

Even better would be a scenario under which consumers could have even more choices beyond the high-cost poky "broadband" choices available from�the entrenched�incumbents in the current market.

AB -- 3/28/06

Tags: advertising, att, cable, comcast, issue, time, warner
Related Tags: cable, Cable, consumers, competition