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Obama Presses for Open Market for Cable Set-Top Boxes Obama Presses for Open Market for Cable Set-Top Boxes
(35 minutes later)
WASHINGTON — President Obama on Friday announced his support for opening the market for cable set-top boxes, singling out the devices in millions of homes as a clunky and outdated symbol of corporate power over consumers, as he introduced a broad federal effort to increase competition.WASHINGTON — President Obama on Friday announced his support for opening the market for cable set-top boxes, singling out the devices in millions of homes as a clunky and outdated symbol of corporate power over consumers, as he introduced a broad federal effort to increase competition.
In an unusual step, Mr. Obama weighed in personally on a pending proposal at the Federal Communications Commission, having his administration file comments that applauded the effort to loosen cable companies’ grip on the boxes.In an unusual step, Mr. Obama weighed in personally on a pending proposal at the Federal Communications Commission, having his administration file comments that applauded the effort to loosen cable companies’ grip on the boxes.
The president, in an interview with Yahoo Finance, said it was an example of the kinds of actions government agencies should take in response to an executive order he signed on Friday calling for administrative action to promote competition and to better protect consumers.The president, in an interview with Yahoo Finance, said it was an example of the kinds of actions government agencies should take in response to an executive order he signed on Friday calling for administrative action to promote competition and to better protect consumers.
“The cable or satellite box is just one example of an area where, because it’s been tied to the provider and you rent it, and consumers spend billions of dollars on it every single year, there hasn’t been much innovation,” Mr. Obama said, adding that the private sector becomes less effective “if we get closed systems or if people are gaming the system.”“The cable or satellite box is just one example of an area where, because it’s been tied to the provider and you rent it, and consumers spend billions of dollars on it every single year, there hasn’t been much innovation,” Mr. Obama said, adding that the private sector becomes less effective “if we get closed systems or if people are gaming the system.”
The announcements are the newest moves by Mr. Obama to push back against the forces of consolidation and monopoly, and to shift power away from large corporations in an array of industries.The announcements are the newest moves by Mr. Obama to push back against the forces of consolidation and monopoly, and to shift power away from large corporations in an array of industries.
They are also the latest to place the president squarely on the side of technology companies — some led by executives who have contributed to Mr. Obama’s campaigns, hired his former aides, and spoken to him often. Among the supporters of the set-top box proposal are companies like Google, Amazon and Apple, which are eager to establish a broader foothold in the TV market. They are also the latest to place the president squarely on the side of technology companies — some led by executives who have contributed to Mr. Obama’s campaigns, hired his former aides and spoken to him often. Among the supporters of the set-top box proposal are companies like Google, Amazon and Apple, which are eager to establish a broader foothold in the TV market.
“An industry that had previously been considered untouchable — the cable guys — is now subject to criticism from the president,” said Susan Crawford, a Harvard Law School professor who is a former aide to Mr. Obama. “This is like weighing in against Big Tobacco or Big Pharma.”“An industry that had previously been considered untouchable — the cable guys — is now subject to criticism from the president,” said Susan Crawford, a Harvard Law School professor who is a former aide to Mr. Obama. “This is like weighing in against Big Tobacco or Big Pharma.”
Cable industry leaders lashed out at Mr. Obama, arguing that he was rewarding political friends and benefactors like those at Google, and undermining the independence of the F.C.C.Cable industry leaders lashed out at Mr. Obama, arguing that he was rewarding political friends and benefactors like those at Google, and undermining the independence of the F.C.C.
Jim Cicconi, a senior executive vice president at AT&T, said the president’s move was “aimed at muscling Democratic commissioners to support the Google proposal.”Jim Cicconi, a senior executive vice president at AT&T, said the president’s move was “aimed at muscling Democratic commissioners to support the Google proposal.”
The administration can comment on any proposal by the F.C.C., an independent agency, but it does so sparingly, and it is rare for the president himself to speak out on a pending matter. In this case, his advisers said he felt that the issue merited his involvement because of the broad impact the changes could have on the cable market, one that touches many American households.The administration can comment on any proposal by the F.C.C., an independent agency, but it does so sparingly, and it is rare for the president himself to speak out on a pending matter. In this case, his advisers said he felt that the issue merited his involvement because of the broad impact the changes could have on the cable market, one that touches many American households.
The F.C.C. proposal would allow subscribers to choose and buy the devices they use to view television programming, instead of leasing the boxes from their cable companies at an average annual cost of $231. The agency approved the plan in February, starting a 60-day comment period that closes in a week.The F.C.C. proposal would allow subscribers to choose and buy the devices they use to view television programming, instead of leasing the boxes from their cable companies at an average annual cost of $231. The agency approved the plan in February, starting a 60-day comment period that closes in a week.
In comments submitted on Friday, the National Telecommunications and Information Administration, part of the Commerce Department, urged the F.C.C. to take a “measured and balanced” approach to injecting competition into the set-top-box market, including enabling alternative providers to provide their own user interfaces, as well as other features. In comments submitted on Friday, the National Telecommunications and Information Administration, part of the Commerce Department, urged the F.C.C. to take a “measured and balanced” approach to injecting competition into the set-top box market, including enabling alternative providers to provide their own user interfaces, as well as other features.
In a blog post, Jason Furman, the chairman of Mr. Obama’s Council of Economic Advisers, and Jeffrey D. Zients, the director of the National Economic Council, called the set-top box rule the “mascot” for Mr. Obama’s new pro-competition executive order.In a blog post, Jason Furman, the chairman of Mr. Obama’s Council of Economic Advisers, and Jeffrey D. Zients, the director of the National Economic Council, called the set-top box rule the “mascot” for Mr. Obama’s new pro-competition executive order.
The president’s aides gave no examples of the kinds of rules Mr. Obama would like to see agencies propose in response to the executive order. Mr. Furman said White House officials had already notified the agencies of the coming call for recommendations, so some of the regulations were already underway.The president’s aides gave no examples of the kinds of rules Mr. Obama would like to see agencies propose in response to the executive order. Mr. Furman said White House officials had already notified the agencies of the coming call for recommendations, so some of the regulations were already underway.
The push announced on Friday is in line with Mr. Obama’s promise in his State of the Union address this year to find ways to help workers, small businesses and entrepreneurs. In a report issued on Friday, the Council of Economic Advisers said that competition was declining in many industries and argued that the decrease was having a harmful effect on consumers and workers.The push announced on Friday is in line with Mr. Obama’s promise in his State of the Union address this year to find ways to help workers, small businesses and entrepreneurs. In a report issued on Friday, the Council of Economic Advisers said that competition was declining in many industries and argued that the decrease was having a harmful effect on consumers and workers.
Mr. Obama has acted several times to combat the trend, including signing legislation to unlock cellphones, which allows consumers to switch providers while keeping the same device.Mr. Obama has acted several times to combat the trend, including signing legislation to unlock cellphones, which allows consumers to switch providers while keeping the same device.
The Transportation Department has pressed airports to open slots to more airlines, while the F.C.C. adopted rules for auctioning wireless spectrum intended to allow smaller players more opportunities to participate.The Transportation Department has pressed airports to open slots to more airlines, while the F.C.C. adopted rules for auctioning wireless spectrum intended to allow smaller players more opportunities to participate.
The president weighed in personally in 2014 on the F.C.C.’s net neutrality rules. He argued that the Internet should be regulated as a public utility, and he pressed for strict rules to prevent broadband companies from blocking or intentionally slowing legal content and from allowing content providers to pay for a fast lane to reach consumers. The rules were released last year.The president weighed in personally in 2014 on the F.C.C.’s net neutrality rules. He argued that the Internet should be regulated as a public utility, and he pressed for strict rules to prevent broadband companies from blocking or intentionally slowing legal content and from allowing content providers to pay for a fast lane to reach consumers. The rules were released last year.
The report released on Friday listed several areas that the president’s advisers said they thought could be ripe for pro-competition regulations, including so-called Big Data, the consumer information that includes buying habits and Internet browsing histories, price transparency and common ownership of stock by large institutional investors.The report released on Friday listed several areas that the president’s advisers said they thought could be ripe for pro-competition regulations, including so-called Big Data, the consumer information that includes buying habits and Internet browsing histories, price transparency and common ownership of stock by large institutional investors.