STATEMENT OF 
COMMISSIONER DEBORAH TAYLOR TATE
Re: Exclusive Service Contracts for Provision of Video Services in Multiple Dwelling Units 
and Other Real Estate Developments
The FCC continues to encourage competition across platforms and the stimulation of investment 
further down the marketplace, resulting in more competition and hopefully more choice and 
lower prices for consumers through the banning of exclusivity clauses in the MVPD market.  I 
think we all recognize that exclusivity contracts in perpetuity are not in keeping with our pro-
competitive policies and should be banned.
As a former state official, I am wary of acting in any area in which states have already 
taken the lead. We recognized state action granting video relief in our 621 Order and I do so 
again today.  I am one of those unique federal officials who still believes that states have a critical 
role in our concept of “federalism.”  I appreciate the comments of the National Governors 
Association and the National Conference of State Legislatures and other local officials who 
contacted us. As we recognized in our earlier Orders on exclusivity clauses, today’s action should 
not conflict with states that have already imposed a ban.  Rather it extends this prohibition to 
those states that have not yet acted. 
Like many of our decisions, the effects of today’s Order will not truly be tangible until 
markets and technology evolve.  Much of the U.S. still depends on cable for their video and 
broadband service and that will not change overnight.  This order, which ends exclusivity 
clauses—as we did earlier in the telecom arena-- will not create competition in every MDU 
overnight.  It will, however, set the stage for more competition through a gradual process that 
hopefully will allow cable companies and Wall Street to adjust to the change in investment 
strategy.  
This Order does not abrogate existing contracts, but rather declares exclusivity clauses to 
be unenforceable.  Other provisions of service contracts remain intact.  Also, this Order is focused 
solely on access to MDUs.  Other competitive, freely negotiated business arrangements are 
untouched by this action.
I am pleased that we have also agreed, within the next two months, to consider the issues 
raised in the 2000 Competitive Networks Further Notice of Proposed Rulemaking.  In the interest 
of regulatory parity, it is essential that we seek to apply our rules consistently across all platforms 
in a timely manner.