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CAN ALERT: Will the New FCC Order Allow You to Cancel Your Current Cable Contract?

Dear

Please click here to read the recent FCC Press Release regarding the Commission's Report and Order banning the use of exclusivity clauses for the provision of video services to multiple dwelling units (apartment buildings, condominium, cooperative and homeowners' associations) http://www.canfl.com/Documents/FCCnews.pdf.

This order does not become official until it is published in the Federal Register which should happen in the next two months. This is a reversal of the FCC's position back in 2003 when the agency actually encouraged exclusive contracts between franchise cable providers and those residing in multifamily housing. While the motivation appears to be to foster greater competition and choice, undoubtedly the order will be challenged by providers since the order invalidates not only exclusivity clauses in future contracts but those found in existing contracts as well.  The order does not currently extend to private cable operators and satellite service providers.

From an association perspective, the FCC's indication that it wants to extend the ban to private operators and bulk contracts could spell trouble since an end to bulk contracts could mean an end to significant savings for a community. The bottom line is that it would not be wise to rush out and attempt to cancel your current contract without first discussing all of the ramifications with your association attorney. For some associations tied in to long-term franchise providers who have been unhappy with the product and service for years, this order will provide welcome relief. For others, who are happy with the ability to secure deep discounts as a result of bulk contracts, the extension of the order to ban bulk contracts will not be as well received. CAN works closely with many industry experts. Please keep an eye out for further discussion on the FCC order and its potential impact in future newsletters and alerts. This will also be discussed on our Ask The Experts feature at http://www.canfl.com.

You can also read more about the FCC order in an article by Terry Sheridan published yesterday in the Daily Business Review. Please click here to read "For condo viewers, more options, but end to discounts?" http://www.canfl.com/pdfs/cable%20TV%20article.pdf. This article is also available under the In The News tab on the CAN website at http://www.canfl.com.

On a separate note, the United States House of Representatives just passed a bill (with a 258-155 vote) to create a national fund to cover disasters. The House bill was sponsored by our own Congressmen Tim Mahoney (Palm Beach Gardens) and Ron Klein (Boca Raton. The bill would create a fund to cover the most expensive catastrophes so private insurers could provide more competitive rates to consumers. The bill would establish a federal loan program for states that bear the brunt of these kinds of catastrophes. The program would be mostly funded by states who participate through the sale of bonds. The bill would authorize up to $120 million in federal contributions over six years. It is now up to the U.S. Senate to take up the cause and approve a companion bill.

Lastly, the Condominium Ombudsman, Danille Carroll, will be holding a Public Meeting for all condominium owners on Saturday, December 8, 2007, from 10:00 am to 1:00 pm at Broward Community College-South Campus, 7200 Pines Boulevard, Building 68. This is a great opportunity for all people involved in condominium association living (board members, owners, property managers, etc.) to come out and speak with the Condominium Ombudsman, the Director of the Division of Florida Land Sales, Condominiums and Mobile Homes and your local state legislators. Information on laws and rules regulating condominium associations in Florida will be provided. There is no cost to attend this meeting. For more information and directions, please click on the Upcoming Meetings link of the CAN website at http://www.canfl.com.

Best Regards,
		
Donna D. Berger, Esq.
Executive Director of the Community Advocacy Network (CAN)
Telephone: 954.315.0372
Facsimile:   954.486.7782
Web: www.canfl.com
Email: dberger@canfl.com

For more information, please contact Donna Berger at 954-486-7774 or via email at dberger@canfl.com