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Construction Law

: The South Carolina Construction Law Blog

FCC Issues Order Banning Exclusivity Contract with Cable Providers

By Ryan McCabe

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    On March 19, 2008 the Federal Communications Commission (FCC) voted unanimously to issue an order banning exclusivity contracts between cable operators (and other multi-channel video programming distributors) and multiple dwelling unit developments. The definition of multiple dwelling units developments includes condominiums, cooperatives, and single-family residential communities. This action by the FCC is consistent with its position that communication providers (internet, wireless and cable) should be subject to the greatest possible competition in providing their services, and that consumers generally benefit from that competition.

    If your HOA, POA, condominium association, or cooperative  has an exclusivity clause in your cable or video programming distribution contract, this ban will not necessarily terminate the contract, but it may make certain the exclusivity provisions of that agreement unenforceable. The benefit of an exclusivity provision in the contract is that it generally permitted a community association to obtain a better rate for the cable/video programming services, installation of fiber optics, cabling, etc. Without an exclusivity clause, however, most cable operators will probably eliminate discounts extended to community associations unless they employ creative incentives such as providing the discount if a minimum number of residents of a community enter into contracts with the provider.

    Click here to view a copy of the media release published by the FCC.

    Links on the FCC order:

    Benton Foundation article
    National Multi Housing Council article

    This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.

Full post as published by The South Carolina Construction Law Blog on April 02, 2008 (boomark / email).