NCTA seeks stay on FCC MDU Decision

The National Cable & Telecommunications Association (NCTA) today requested that the FCC stay, pending judicial review, the portion of its November 13 order that prohibited the enforcement of existing exclusive access agreement between cable operators and owners of multiple dwelling units (MDUs).

NCTA said that the Commission lacks legal authority to prohibit the enforcement of existing contracts between cable operators and owners of MDUs. It asked the FCC to rule on the request by December 21, 2007, and stated that it will seek a stay in the U.S Court of Appeals if the FCC does not act by then.

The FCC’s decision reversed its 2003 order in which it concluded such contracts didn’t thwart the entry of competitive video providers, and that government intervention was not warranted in an increasingly competitive video marketplace. As a result of the 2003 order, cable operators and building owners continued to enter into exclusive agreements, which often required cable operators to make substantial investments in new or upgraded facilities. Those investments would be jeopardized, causing irreparable harm, if a stay is not granted.

“NCTA is not seeking a stay of the entire order, only the prohibition on enforcement of existing exclusive access agreements,” NCTA said in its stay request.


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