Genachowski Tries To Calm Cable Sector Chicken Littles – Insists ‘every market has competition,’ sector ‘an amazing success story’


Speaking at The Cable Show in Los Angeles, FCC boss Julius Genachowski yesterday discussed the FCC’s recent decision to partially reclassify broadband providers as common carriers under section two of the Communications Act. Despite the fact that more than 85% of the public lives in a largely uncompetitive duopoly market, Genachowski informed the crowd that “I believe virtually every market has competition.” He also reiterated that rate regulation and unbundling (line sharing) were “off the table,” while trying to calm an audience that truly believes any sector regulation is akin to puppy torture:

Genachowski said his goal was getting back to a solid legal foundation that allows the commission to do what it has previously articulated, but not more. . . The chairman began the interview with a shout-out for the industry. The country would not be here talking about broadband adoption were it not for the pioneers of the cable industry and the cable modem,he said, calling it “an amazing American success story.”

Genachowski is very skilled at telling everyone precisely what they want to hear, but it’s still not clear if trying to please everyone all the time is going to work moving forward. The FCC’s broadband plan still doesn’t tackle a lack of competition — and it’s fairly clear the agency’s boss is willing to at least pretend that’s not really a problem anyway.

Robust competition would organically improve many sector problems (predatory billing, network neutrality, high prices, network investment) without the need for the additional regulation the sector so despises. Yet with a sector opposed to both competition and regulation — and an FCC unwilling to truly stand up to them on hard issues — forward progress from the consumer perspective remains a murky path at best.
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Original story here.

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