US court strikes down ‘30% market-cap’ rule; gives Comcast greater expansion rights

.

Comcast Corp

In what Wall Street analyst Craig Moffett described as a "moral" victory for cable biggie Comcast Corp., a federal appeals court in Washington struck down a rule that limited Comcast's business at 30 percent of the pay-TV market - this being the second time the '30 percent market-cap' regulation has been overturned; the first time being the 2001 court decision!

Comcast had contended that the market-cap rule, passed under Kevin Martin, the former Chairman of the Federal Communications Commission (FCC) was politically motivated, and had said that it would not trounce a court challenge.

About the recent court ruling, the present FCC Chairman Julius Genachowski said that while setting a new 'cap' in future, the FCC will give due consideration to the court's decision on the 30 percent level.

Hailing the court decision that allows greater expansion rights, the Philadelphia-based Comcast, which currently controls nearly 25 percent of the pay-TV market with almost 24 million cable-TV subscribers, said that it could now carry forth its acquisition plans, particularly as it has, of late, been steadily losing cable-TV customers.

Commenting on the 21-page court decision, Comcast spokeswoman Sena Fitzmaurice remarked: "We are pleased the court has vindicated our position. This important decision affirms that rules must reflect the changing realities of the dynamic video marketplace where today consumers have more choice in video providers and channels than ever before."


Latest News

New Measures Introduced by China to Boost Economy Fail to Bring Long-lasting Con
Overwhelming ‘No’ vote by Greeks Make the Nation’s Future Uncertain
CPUC Votes Unanimously to Support a Revised Version of Electricity Pricing
It’s Quite Likely that Greek Bank Customers have to Bear More Financial Pain
JetBlue Starts Weekly Charter Flights to Havana from  New York
Californians Will Face Changes in Electricity Bill as PUC Gets Ready to Vote on
Increase in the Number of U.S. Oil Drilling Rigs Break the 29 Week Successive De
Though Employers Hire at Steady Rate Wages Remain Flat
Aetna Acquiring Medicare Insurer Humana for $37 Billion in Cash and Stock Combin
New Financial Worries Leave Greece Divided
Airlines Next on The Probe List of Justice Department’s Antitrust Division
Shutting Down the Wrong Engine Led to Crash of TransAsia Flight GE235 in Taiwan