Obama Backs Cable Competition And Infuriates Industry [View all]

[pampango]

The Obama administration on Friday weighed in on the debate over allowing consumers to switch from pricey cable television boxes to less expensive devices, urging regulators to set an example for the rest of government on how to boost competition. Consumers can spend nearly $1,000 over four years renting cable set-top boxes. Allowing consumers to chose devices or apps they can own could mean quick savings, according to the administration.

“Competition is good for consumers,” President Barack Obama said in an interview with Yahoo Finance. “And ultimately it’s good for business. The more competition we have, the more products, services, innovation takes place.”

Cable and television companies have lashed out against the proposal, saying it could stifle innovation. Under the rule, minority programmers would be damaged, consumers would lose privacy protections and be saddled with the costs of re-engineering networks, said Michael Powell, the head of trade group National Cable & Telecommunications Association.

The companies also contended the White House is pressuring the FCC, which they said was inappropriate. “This action not only damages the only companies seriously investing to build broadband infrastructure for this country, it also does great harm to the confidence we should be able to have in the impartiality of the FCC’s proceedings,” said Jim Cicconi, a senior executive vice president at AT&T Inc.

http://www.huffingtonpost.com/entry/obama-cable-competition-industry_us_57129c83e4b0018f9cba3dd7?utm_hp_ref=politics