October 6, 2006

How Cox Cable Can Defend Its Monopoly, Rhode Island-Style

Carroll Andrew Morse

Timothy C. Barmann of the Projo has been reporting that Verizon is trying to enter the Rhode Island cable TV market. This is from yesterday's paper...

Verizon Communications has cleared a significant hurdle in its plans to offer cable television service in Rhode Island by reaching an agreement with the state that lifts the requirement that Verizon build its own public-access studios, as other cable providers must do....

Cox Communications, which has the most to lose by Verizon's entry in the cable business, did not raise any objections to the waiver agreement.

Here's the strategy I think Cox should follow to fend off the Verizon threat. Cox should propose amending the state constitution so that the rights to operate a cable TV company in Rhode Island are limited to one and only one comapny, a company that must be based in Atlanta, Georgia.

This strategy makes as much sense as amending the state constitution to allow the state to grant the right to operate one and only one destination casino that must be located in West Warwick, RI.

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Cox has a much bigger problem. Fiber all the way to your house has vastly more potential bandwidth capacity (via DWDM) than a coax cable.

Posted by: John at October 6, 2006 2:04 PM

Obviously the model here is the Rhode Island charter school moratorium. Cox could lobby to have a moratorium on dense wavelength-division multiplexing (DWDM) passed into law, because allowing people to pay for DWDM would rob resources from traditional coax.

Posted by: Andrew at October 6, 2006 2:28 PM

Surely, Bob Walsh and Marcia Reback would sign on with Cox. But how about "George Gilder is my Idol" Oliveira? Shouldn't Cox be looking at him as the next Chief Thomas, and renting a bus for his statewide "save coax" tour?

Posted by: John at October 6, 2006 4:39 PM

Right. The first order of business for Cox is to pay Tim Williamson $600,000 and Joe Montalbano $86,000 (enclosing a note to Joey to remind him not to declare it on his disclosure forms).

Posted by: SusanD at October 6, 2006 4:49 PM

Dear John,

For the record, in September of 2005, I "fired" Cox (all 3 services) and now have Verizon for phone and DSL along with a Dish. I am much more happier under this arrangement.

Posted by: Bobby Oliveira at October 6, 2006 9:52 PM

---Right. The first order of business for Cox is to pay Tim Williamson $600,000 and Joe Montalbano $86,000------

LOL. Then run some puppet for governor as "the anti-corruption candidate" opps, they're already doing it.

Posted by: Mike at October 9, 2006 3:06 PM