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U.S.: FCC changes rule for pro-competitive cableco/telco mergers

 |  September 21, 2012

On Monday the US watchdog approved a request by trade group the National Cable & Telecommunications Association (NCTA) to relax rules dating back to the Telecommunications Act of 1996 that prohibited cable firms from acquiring more than a 10% stake in any LEC within the cable firm’s franchise area.

The Federal Communications Commission (FCC) removed the restriction preventing domestic cable operators (DCO) from acquiring local exchange carriers (LECs). With this streamlining rule change the FCC admits that such mergers could lead to a potential stronger competition in the dense market and puts pressure on the large telecoms carriers. 

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