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FCC Ruling Challenges Cable, Phone Co. Partnerships

The cable/wireless four-play is in jeopardy, now that the Federal Communications Commission has passed new privacy rules preventing cable companies from sharing data with voice-over-Internet-providers. The new rules, which are aimed at protecting consumers, would hinder the plans of Comcast Corp., Time Warner Cable and Cox Communications to partner with Sprint Nextel to offer a four-play media package that would include cable TV, high-speed Internet, as well as VoIP phone and mobile wireless service.

The article says this would be an unintended consequence of the new FCC regulations, although it wouldn't necessarily K.O. the partnerships. It would likely require the cable companies to receive permission through an opt-in before sharing customer information with Sprint.

However, one Washington lawyer says the rule could present a more serious challenge than it seems, in part because the three cable companies already use Sprint to provide VoIP phone service to their triple-play customers. Indeed, it's necessary for any cable company offering a triple-play package to partner with a phone company, and given that consumer opt-in rates are traditionally low, the ruling would present significant challenges to existing and future service. The lawyer said cable companies might now seek legal action.

Read the whole story at The Wall Street Journal »

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