I reported earlier about the FCC’s attempt to end local franchising, since such arrangements have been stifling cable competition for years. Now, a group of local-lovers are claiming that the FCC’s measure did not result in lower cable costs.
The report by the Alliance for Community Media and the National Association of Telecommunications Officers and Advisers has several flaws. First of all, it leaves out consumer choice. The report whines about the demise of local coverage – which is caused by extremely low demand for such issues. The fact that customers now have more choice than just the one monopoly operator is a positive for them, even if it is not immediately reflected in price cuts. New operators offer much better, but less quantifiable, new services – such as a greater number of channels, appeals to broader interests, on-demand, DVR services, Internet bandwidth, cheap bundling packages, and more HD programming.
Competition is good for customers. Let’s congratulate the FCC when they get something right.