Competition Comes to the Cable Industry

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Competition!

President Barack Obama will publicly back regulators’ efforts to open cable set-top boxes to competition, as he issues an executive order Friday designed to stimulate market competition across the private sector.

The order will task federal agencies with identifying markets that the government might be able to help overhaul to the benefit of consumers and businesses. White House officials said federal action can do for the set-top cable box what regulators did for landline telephones more than 30 years ago. Back then, many Americans paid the phone company not only for their landline connection, but for renting the physical phone itself.

Good for Obama. The cable industry is one of the least competitive in the country—and, not coincidentally, one of the least loved. This action won’t open up the cable infrastructure itself to competition, but at least it will open up one small part of it.

Like Ma Bell a few decades ago, you can expect the cable companies to issue dire warnings about the vast technical difficulties of making sure cable boxes work properly with their delicate lines, but don’t believe it. It’s all just hogwash. The technical specifications for interconnection aren’t rocket science, and they can be reasonably regulated the same way phone equipment is.

Competition is good. Competition is good. Competition is good. The only people who don’t like it are the monopolists who profit from extracting rents from the rest of us. Anything that increases it is a net positive benefit.

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FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2020 demands.

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