FCC: Cablevision/MSG Network Violated Program-Access Rules
Says withholding of HD versions of MSG, MSG-Plus hinders competition

By John Eggerton
Broadcasting & Cable

9/22/2011 4:04:18 PM

http://www.broadcastingcable.com/article/474265-FCC_Cablevision_MSG_Network_Violated_Program_Access_Rules.php


The FCC's Media Bureau has ruled that Cablevision/Madison Square Garden 
Network violated FCC program access rules by withholding HD versions of 
MSG and MSG-Plus from Verizon and AT&T.

The FCC ruled that it was an "unfair act" that "had the effect" of 
"significantly hindering AT&T [and Verizon] from providing a competing 
video service."

The FCC said MSG had 30 days to make the nets available to both AT&T and 
Verizon on reasonable terms and conditions.

Verizon and AT&T said it was a win for consumers, while Cablevision said 
the FCC's Media Bureau had not gotten its facts straight.

The decisions follow the FCC's move to close the so-called terrestrial 
loophole/exemption that had prevented access complaints against 
withholding of affiliated terrestrially-delivered networks. The FCC gave 
AT&T and Verizon a chance to refile their complaints under a new 
standard of unfairness.

The rules also made clear that HD and standard-def channels are separate 
entities for the purposes of access. Verizon carried the SD versions of 
the channels, but Cablevision had not made the HD versions available.

In separate complaints, Verizon and AT&T had asked the Federal 
Communications Commission to force Cablevision Systems and Madison 
Square Garden to sell HD feeds of MSG Network and MSG Plus to the telco 
for its FiOS TV service in the New York area.

The FCC last year removed the exemption of terrestrially delivered 
networks like MSG from program-access requirements.

Both AT&T and Verizon complaints involved carriage of HD signals in 
Connecticut. Both carry the SD feeds of MSG and MSG Plus, which between 
them hold local TV rights to the National Basketball Association's New 
York Knicks, and the National Hockey League's New York Rangers, New 
Jersey Devils and New York Islanders.

"The FCC's decision means that Cablevision no longer can withhold 
popular programming, such as HD sports programming, from its 
competitors," said AT&T in a statement. "We look forward to bringing to 
our customers this ‘must have' content, and enhancing AT&T's U-Verse 
service to better compete against the cable companies. We are pleased 
the FCC has resolved this dispute in favor of competition and consumers."

Mike Glover, Verizon SVP and deputy general counsel, said in a 
statement: "The Federal Communications Commission's decision creates new 
opportunities for consumers and video competition. Consumers have made 
it clear they want a quality alternative to the cable incumbent, and 
that regional sports networks in high-definition are an important part 
of the video-service experience. With this FCC ruling, consumers who 
have chosen or want to choose a video-service competitor, like Verizon 
FiOS, will gain access to MSG and MSG-Plus in HD, giving fans of the 
Knicks, Rangers, Sabres and other teams new video choices that best 
meets their needs. As well, competition will be on a more level playing 
field in the New York/New Jersey region. Verizon looks forward to 
working with MSG to make these sports networks available in 
high-definition soon."

"Today's disappointing rulings do not appear to be based on the facts," 
said Cablevision in a statement. "The data clearly demonstrates that 
there has been no competitive harm to the nation's two largest phone 
companies as a result of not having two HD channels they already receive 
in SD. New York is the most competitive market in the country and this 
decision only hurts fair competition and consumers. Instead of competing 
on the merits in the marketplace, Verizon and AT&T are manipulating 
federal law to gain an unfair advantage and we have every intention of 
pursuing relief in the courts."

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