STATEMENT OF 
CHAIRMAN KEVIN J. MARTIN
Re:  In the Matter of Exclusive Service Contracts for Provision of Video Services in 
Multiple Dwelling Units and Other Real Estate Developments, MB Docket No. 07-51
Fostering greater competition in the market for video services is a primary and 
long-standing goal of federal communications policy. Congress recognized that 
competition in the video services market benefits consumers. Indeed, one of the 
Communications Act’s explicit purposes is to “promote competition in cable 
communications.” Competition and choice in the video services market results resulting 
in lower prices, higher quality of services, and generally enhancing the consumers’
experience by giving them greater control over the purchased video programming.
All of us here on the Commission have expressed concern about rising cable 
prices and the importance of encouraging greater competition in the delivery of 
multichannel video programming.
As we recently found, from 1995 to 2005, cable rates have risen 93%. In 1995 
cable cost $22.37 per month. Communications Daily has reported that prices for 
expanded basic are now about $50 per month.  The trend in pricing of cable services is of 
particular importance to consumers.  Since 1996 the prices of every other 
communications service have declined while cable rates have risen year after year after 
year.  
The GAO and the Commission’s most recent cable price survey also found that 
while cable does face some competition from DBS, DBS and cable do not seem to 
compete on price.  But when a second cable operator is present, cable prices are 
significantly lower - -almost 20% ($43.33 without competition vs. $35.94 where there is 
competition).
Potential competitors seeking to enter the video marketplace have expressed 
concerns that the use of exclusive contracts for “multiple dwelling units” (MDUs) are 
barriers to entry, preventing consumers in MDUs from receiving the benefits of video 
competition.  This Notice of Proposed Rulemaking demonstrates the Commission’s 
commitment to ensure that all consumers—including those living in apartments—benefit 
from video competition.  Through this Notice, the Commission seeks to further cable
competition and help ensure that lower cable prices are available to as many Americans 
as possible as quickly as possible.