Comments of Brian Dietz , Senior Director, Communications
National Cable & Telecommunications Association
Regarding the Consumer Federation “Analysis” of the
FCC 10th Annual Video Competition Report
The Consumer Federation continues to show its lack of understanding of the competitive video marketplace that exists today and the fact that most consumers have the choice of at least three multi-channel video providers, including their local cable operator. The FCC’s recent video competition report highlighted the sweeping competitive changes that have taken place in the video marketplace over the past ten years, including the emergence of two nationwide DBS competitors who now serve more than 21 percent of multichannel video households, leading the FCC to conclude that, “the vast majority of Americans enjoy more choice, more programming and more services than any time in history.”
A separate GAO study released last fall confirmed that cable prices reflect significant investments by cable operators in infrastructure and programming, which have improved the quality and consumer value of cable television, and that proposals to reregulate cable program service would not benefit consumers. Rather, GAO acknowledged that forcing cable operators to package programming a la carte would produce a net loss for many cable customers, who would end up paying higher prices for fewer channels.
By ignoring the many consumer benefits of cable’s $85 billion investment in digital broadband technology, and the unprecedented choices that consumers have in today’s video marketplace, the Consumer Federation once again demonstrates that it is not a credible voice on these issues.
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NCTA is the principal trade association of the cable television industry in the United States . NCTA represents cable operators serving more than 90 percent of the nation's cable television households and more than 200 cable program networks, as well as equipment suppliers and providers of other services to the cable industry.