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Media contact: Cheryl Reed 317-446-5240
C4CC Asks Senate Commerce Committee to Keep Competition and Broadband Deployment Moving Forward; Lauds FCC for Efforts
WASHINGTON D.C. (January 31, 2007) – Consumers for Cable Choice (C4CC) today urged the U.S. Senate Committee on Commerce, Science and Transportation to recognize pro-consumer action by the Federal Communications Commission (FCC) in 2006 when the Commissioners appear before the Committee tomorrow for their annual visit.
“Our members joined other consumers across the nation in asking the FCC to open the video market to competition last year, and the Commission listened,” said Robert K. Johnson, C4CC president, noting that C4CC members asked the FCC to encourage cable competition as a means to speed the deployment of broadband, improve service quality and lower rates.
“The FCC did just that, despite great pressure from those who want to deprive consumers of these benefits. Consumers are better off today because of FCC Chairman Kevin Martin and his fellow Commissioners,” Johnson added.
On behalf of 500,000+ C4CC coalition members, Johnson asked the Committee to use its opportunity with the FCC to further advance the case of competition while separating out other issues that have kept consumers from reaping the full benefits of competition. “Our members are diverse in focus but united in the belief that policy makers should take all steps necessary to encourage fairy, comprehensive and healthy competition in the communications industry,” Johnson said.
“Our members believe the nascent cable competition movement in this country has already helped consumers in the areas where it has begun to grow, and they want to see competition spread.”
At present, data and voice communications services are offered in a highly competitive arena where consumers are in charge. Only in the video market is this race encumbered by outdated regulations that impede real competition.
The consumer benefits that will come when the entire gamut of communications services are offered competitively are immense, Johnson said, outlining C4CC coalition members’ different reasons for wanting competition to flourish:
• Small businessmen and women and advocates believe competition will enable them to gain access the high-speed communications services huge corporations and global competitors have used to increase their market share.
• Farmers and rural residents believe competition is the only way they will ever have access to the broadband and high-speed telecommunications services their urban neighbors – and many of their global competitors – have had for years.
• Health and human service advocates see a highly competitive communications marketplace as a way to finally deliver on-demand video services that could affordably deliver medical and social services to those in need regardless of their access to transportation.
• Minority groups want greater influence over programming and services.
• Educators see it as a way to spread knowledge – and improve the standard of living – for students of all ages and incomes.
• Every C4CC member sees competition as a way to make these important services more reasonably priced and delivered with a higher standard of service quality,” he said.
“As with progress of any kind, there will be those who worry about the parochial impact on their personal and business interests. Such is the case, in this instance, with so-called 'net neutrality.' While we are confident that existing FCC enforcement mechanisms are sufficient to address these speculative concerns regarding unjust discrimination, we also understand that a healthy public policy debate should be encouraged,” Johnson said. “In any event, to borrow a local saying, net neutrality is the tail, not the dog. The primary policy focus should remain on the robust deployment of broadband infrastructure throughout the nation.”
Just the threat of competition for services throughout the communications industry is helping bring prices down. Eight states followed the example Texas set in 2005 and have enacted cable competition legislation. Using actual cable rate cuts in Texas as a basis, the Phoenix Center for Advanced Legal and Economic Public Policy Studies’ projected savings for each state if cable competition were to flourish coast to coast. Nationally, consumers would save more than $7 billion on top of the anticipated $597 million to be saved in Texas, the study said.
Competition is in play in the broadband service arena, and it’s making a positive difference, too. The latest Nielsen//Net Ratings in December 2006 showed 78 percent of active home Web users were connected via broadband during the month of November 2006, up 13 percentage points from 65 percent of active Web users in 2005.
Johnson credited the presence or the threat of competition as the reason for the progress.
“Where there is great consumer demand, there will be services delivered. And where there is competition to deliver said services, there will be continuous innovation, service upgrade and benefit to consumers,” Johnson said.
About Consumers for Cable Choice www.Consumers4Choice.org Headquartered in Indianapolis, Ind., C4CC is a national alliance of consumer advocacy groups and private citizens who are committed to promoting maximum choice for consumers in cable, video and broadband services. C4CC uses a combination of education and grassroots advocacy to impact change, which will result in a deregulated and pro-consumer market that stimulates fair price, more choices and better service options in the cable television industry. President Johnson has been advocating for policies that benefit residential and small business consumers for more than 20 years.
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