He'll Be Back

Comcast has the most to lose if the Cable Terminator (aka FCC chmn Kevin Martin) succeeds in reinstituting an ownership cap that would prevent cable operators from owning more than 30% of pay TV HHs. The MSO has about 27% right now, which gives it wiggle room to pick up about 3mln more subs if it so desired. Comcast evp David Cohen questioned Thurs how the FCC could institute such a cap, especially in light of the AT&T merger and other telco mergers over the past 3 years. "It is unthinkable that the government would constrain the ability of cable companies like Comcast to compete with these colossal companies that have virtually unlimited financial resources," he said, adding that AT&T’s $231bln market capitalization is larger than the entire cable industry combined. News that Martin may try to put cable ownership on the FCC’s Dec 18 agenda was yet another example of the unearthing an old issue. Back in March, Martin circulated an order that would reinstitute a 30% ownership cap for cable operators. The cap was thrown out by a federal court in ’01 for violating the 1st Amendment, though the court didn’t prevent the FCC from instituting a new cap. The question is how it will justify it? Not through 70/70, apparently…