BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Quoting from the FCC rule:
"No cable operator or other provider of MVPD service subject to 47 U.S.C. § 548 shall enforce or execute any provision in a contract that grants to it the exclusive right to provide any video programming service (alone or in combination with other services) to a MDU. All such exclusivity clauses are null and void"
I take this to mean that Exclusive Contracts are not in and of themselves void, it's just that any provisions or clauses regarding exclusivity that they contain are void. In other words, you may have negotiated a reduced "bulk" rate with the cable company who provides you with service. I don't see this FCC rule as prohibiting such a contract, it just says that the cable company can't sue you for breach of contract if you decide to go out and get another cable provider, but the other provisions of the contract are still enforceable. This may explain why some HOAs cannot get out of their contracts.
Put it another way. You can go out and sign a 3-year contract with company A. Then, you learn that you can get a better deal by getting a 5-year contract with company B. Since company A's contract is not exclusive, you have a perfect right to do that, but that doesn't mean you can cancel your contract with company A. If your contract with company A were exclusive, you wouldn't be able to sign a contract at all with company B.
Any other thoughts?
By the way. I'm not only on the board of our HOA, but I also happen to be our town's representative on our local Cable TV Advisory Council. Lucky me!
"No cable operator or other provider of MVPD service subject to 47 U.S.C. § 548 shall enforce or execute any provision in a contract that grants to it the exclusive right to provide any video programming service (alone or in combination with other services) to a MDU. All such exclusivity clauses are null and void"
I take this to mean that Exclusive Contracts are not in and of themselves void, it's just that any provisions or clauses regarding exclusivity that they contain are void. In other words, you may have negotiated a reduced "bulk" rate with the cable company who provides you with service. I don't see this FCC rule as prohibiting such a contract, it just says that the cable company can't sue you for breach of contract if you decide to go out and get another cable provider, but the other provisions of the contract are still enforceable. This may explain why some HOAs cannot get out of their contracts.
Put it another way. You can go out and sign a 3-year contract with company A. Then, you learn that you can get a better deal by getting a 5-year contract with company B. Since company A's contract is not exclusive, you have a perfect right to do that, but that doesn't mean you can cancel your contract with company A. If your contract with company A were exclusive, you wouldn't be able to sign a contract at all with company B.
Any other thoughts?
By the way. I'm not only on the board of our HOA, but I also happen to be our town's representative on our local Cable TV Advisory Council. Lucky me!