WASHINGTON — Federal regulators are seeking to close a loophole that allows cable-television operators to withhold sporting events and other popular programming that they own from rival providers such as satellite television.
The Federal Communications Commission will consider an order to close the so-called terrestrial loophole, which allows cable companies to get around access requirements in a 1992 federal cable law by distributing programming over landlines rather than satellite connections.
Cable operators, including Cox Communications, Cablevision Systems and Comcast, have relied on the loophole to deny programming to competitors such as DirecTV, Dish Network, AT&T’s U-Verse video service and Verizon’s FiOS video service.
Cox, for instance, denies AT&T access to San Diego Padres games.
Cablevision won’t let AT&T and Verizon carry the high-definition format of its Madison Square Garden networks, which broadcast the games of the New York Knicks, New York Rangers, New York Islanders and New Jersey Devils.
And Comcast does not provide its satellite competitors with access to its SportsNet Philadelphia channel, which carries games by the Philadelphia Flyers, Phillies and 76ers. Comcast does provide the channel to Verizon and RCN, which offers competing cable services in some markets.
The FCC’s move comes as the commission begins its regulatory review of Comcast’s proposal to buy a controlling stake in NBC Universal from General Electric Co. Although the two matters are separate, some analysts expect the FCC to close the terrestrial loophole for Comcast as a condition of regulatory approval for that deal.
In the meantime, the FCC staff has prepared an order to eliminate the terrestrial loophole for all cable companies and plans to send it to the agency’s five commissioners today.
It was not immediately clear when commissioners will vote on the order. The development came as welcome news to companies competing with cable operators in the market for video services.
