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Big Cable Ready To Sue Over New FCC Rule

Big Cable is telling federal regulators it will take them to court if they don't stay an order invalidating exclusive contracts between cable operators and apartment buildings. Two months ago, the Federal Communications Commission unanimously approved a new rule that would ban such pacts -- including existing ones --between cable companies like Comcast and Time Warner Cable and landlords.

The FCC says the move would open up competition and lower prices, but the National Cable & Telecommunications Association says it is unlawful for Uncle Sam to invalidate existing contracts that give apartment dwellers better pricing and service.

The association wants the FCC to stay the part of the order that bans existing deals, but says if no decision is made by Dec. 21, it will go to the U.S. Court of Appeals to get one. FCC Chairman Kevin Martin has said a ban could help lower cable rates for millions of Americans, particularly minorities.

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Read the whole story at AssociatedPress via Businessweek »

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