Martin embarrassed but determined

The crash-through-or-burn strategy of FCC Chairman Kevin Martin, ended in the latter on Tuesday, after a farcical day at the D.C. headquarters which saw the now deeply divided U.S. regulator sitting to midnight to hammer our a face saving compromise. In the end the only "reform" Martin walked away with was a tepid proposal for new rules for independent content players to gaining entry to the cable platform. For the cable digicoms it was an enormous victory even though the industry has to return with new data so as to determine if the industry is dominant (more than a 70 percent share).

Martin found himself alone when the other four commissioners balked at his regulation plan designed to increase competition. Martin had said the cable guys are screwing the consumer with nearly 10 percent annual price hikes for the last 10 years and floated several proposals to limit cable market power.

The Wall Street Journal again led the media charge, declaring Martin's plan to have "crashed and burned." "As Beltway defeats go, it was a doozy," an editorial said.

Martin however remains on the warpath against cable with the New York Times today reporting Martin has placed on the December agenda his proposal to prohibit a cable company controlling more than 30 percent of the market. Comcast has about that share. It all has a whiff of vindictiveness, rather than considered public policy.

Comcast and Time Warner offer digital voice services as a counter to telco and satellite incursion into their markets. Both are now significant carriers in their own right with Comcast expected to be the fourth-largest carrier in the U.S. early next year. Any regulation to stifle its growth would have significant impact not just on the cable industry, but also on the triple play marketplace.

For More:
- New York Times report
- WSJ story  Report (sub. req.)

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