*Pages 1--1 from  Microsoft Word - 58388.doc*
 PRESS  STATEMENT  OF  CHAIRMAN  KEVIN  J.  MARTIN  ON 
 ADELPHIA  TRANSACTIONS 
 I  am  pleased  that  the  Commission  has  voted  to  approve  these  transactions  on  a  bipartisan  basis.  I  believe  that,  on  balance,  the  transactions  as  conditioned  will  further  the  public  interest. 


 The  acquisition  of  the  Adelphia  systems,  currently  in  bankruptcy,  should  bring  significant  benefits  to  the  customers  of  those  systems.  Comcast  and  Time  Warner  have  committed  to  make  long-  needed  upgrades  to 
 those  systems  to  enable  the  rapid  and  widespread  deployment  of  advanced  services  to  Adelphia  subscribers. 
 I  was  concerned  that  the  transactions  raised  the  potential  for  harm  to  competition  in  markets  where  Comcast  or  Time  Warner  has  an  affiliated  regional  sports  network  (“  RSN”).  As  the  Commission  noted  in 
 its  approval  of  News  Corp.  ’s  acquisition  of  DirecTV,  viewers  consider  the  programming  that  RSNs  carry  as  “must  have”  TV.  While  a  new  entrant  or  competing  multi-  channel  video  programming  distributor 
 (“  MVPD”)  could  create  a  substitute  if  denied  access  to  a  local  news  channel,  for  instance,  it  could  not  create  a  substitute  for  the  games  of  a  popular  local  sports  team.  In  North  Carolina,  there  is  no  substitute  for 
 Tarheel  basketball.  As  a  result,  we  conditioned  approval  of  the  News  Corp./  DirecTV  transaction  on  a  requirement  that  News  Corp.  make  its  affiliated  RSNs  available  to  other  MVPDs  and,  if  the  parties  were 
 not  able  to  reach  an  agreement  on  the  terms  and  conditions,  the  MVPD  could  request  binding  arbitration.  We  adopt  the  same  condition  here:  Time  Warner  and  Comcast  must  make  their  affiliated  RSNs  available  to 
 other  MVPDs  and,  if  the  parties  are  not  able  to  reach  an  agreement,  the  MVPD  can  request  arbitration.  I  believe  this  condition  addresses  the  potential  for  anti-  competitive  behavior  and  facilitates  the  ability  of 
 parties  to  compete  with  the  incumbent  cable  operator,  to  the  benefit  of  consumers. 
 The  other  Commissioners  in  the  majority  also  tried  to  address  a  number  of  other  potential  harms.  Commissioner  Tate  raised  concerns  about  access  to  children’s  programming.  Commissioner  McDowell 
 and  Commissioner  Adelstein  raised  concerns  about  MASN  and  other  independent  RSNs  being  carried,  and  Commissioner  Adelstein  also  raised  concerns  about  how  other  independent  programmers  could  use  our 
 leased  access  rules.  All  four  of  us  in  the  majority  worked  hard  to  address  these  concerns,  and  I  appreciate  all  of  their  efforts.  I  am  pleased  that,  in  the  end,  we  could  find  a  way  to  address  these  concerns  in  a  limited 
 way  and  enhance  consumers’  access  to  a  variety  of  programming  and  service  options. 
 In  the  end  there  was  still  some  disagreement  on  net  neutrality.  This  should  not  be  a  surprise,  as  there  is  not  consensus  on  net  neutrality  within  the  industry  or  among  policy  experts.  I  continue  to  support  the  principles 
 we  adopted  last  summer.  However,  I  do  not  think  requirements  are  necessary  at  this  time  without  evidence  of  actual  harm  to  consumers  or  internet  users.  The  Commission  has,  and  will  continue  to,  monitor  the 
 situation  and  will  not  hesitate  to  take  action  to  protect  consumers  when  necessary. 
1