Washington, D.C. - Citizens Against Government Waste (CAGW) today praised the Federal Communications Commission’s (FCC) postponement of a decision on whether the cable television industry has triggered the Cable Act of 1984’s 70/70 rule.  According to the rule, when 70 percent of U.S. households have access to cable and 70 percent of those with access subscribe, the FCC can step in and implement new regulations to ensure information source “diversity.”

While at least 70 percent of household do have access to cable, FCC Chairman Kevin Martin used suspect information from Warren Communications News Inc. to claim that 70 percent subscribe.  According to PC Mag, Warren data “has traditionally skewed higher in its estimates of cable subscriber numbers” and FCC Commissioners found out only last night that the FCC’s own data puts the number at 54 percent.  As a compromise, cable providers will have 60 days to present their own data.

“Chairman Martin has resorted to cherry-picking data in an attempt to increase government control of cable TV at the expense of consumers and the free market.  The 70/70 rule is a relic from before the time of the Internet, satellite TV, and telephone fiber networks and should be forgotten,” said CAGW President Tom Schatz

If the FCC were to implement the 70/70 rule, it is likely the Commission would mandate “a la carte,” the sale of individual channels, in the cable television industry.  A la carte pricing would drastically change television advertising, ultimately making such a system more expensive than the current tiered system for consumers.

“Today there is more competition and better options for customers.  Over-regulating and underutilizing the telecommunications industry will have detrimental effects on the diversity of goods and services provided while wasting billions of tax dollars.  The next ‘big’ innovation will come about because of less – not more – government interference,” Schatz concluded.

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.