Obama
urges agency to open competition in cable TV boxes
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[April 15, 2016]
By Timothy Gardner
WASHINGTON (Reuters) - The Obama
administration on Friday weighed into the debate over allowing consumers
to switch pricey cable television boxes for less expensive devices,
urging an agency to set an example for other parts of government to
boost competition.
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Consumers can spend nearly $1,000 over four years for renting cable
set top boxes. Opening the business to competition and allowing
consumers to chose devices or apps they can own could mean quick
savings, an official said.
"You could have a set a standards such that anyone could connect any
box to their cable and those boxes could compete for lower prices
and greater innovation," Jason Furman, the chairman of the Council
of Economic Advisers told reporters in a teleconference.
The Federal Communications Commission, an independent agency, in
February proposed a rule opening competition in the $20 billion
television set-top box market. It set a 60 day comment period on the
rule that could cost major cable companies.

The rule would allow consumers to obtain video services from
providers such as Alphabet Inc, Apple Inc and Tivo, instead of
cable, satellite and other television providers such Comcast Corp
and Verizon Communications.
It is unclear if the rule will be implemented before Obama leaves
office next January. Cable and television companies have lashed out
against the proposal saying it could stifle innovation.
The administration entered the debate through a rare filing into the
FCC's comment period. "When the President personally gets involved
is when it's of real great importance, in his mind, to consumers, to
competition, and to the economy more broadly," Furman said.
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Obama will also sign an executive order on Friday calling on federal
agencies and departments to report in 60 days on specific areas
where additional measures can be taken to open competition.
Furman would not venture a guess on what kind of pro competition
measures that order could spur. The administration is looking to add
to actions it has already taken for consumers on cell phones, net
neutrality and retirement advice.
“This is going to be a whole of government effort to empower
consumers, workers and small businesses,” Furman said.
(Reporting by Timothy Gardner; Editing by Michael Perry)
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