AT&T Files Complaint With FCC Against Cox Over Padres Broadcasts

AT&T Alleges That Cox' Exclusive Padres Broadcasts Violate FCC Competition Rules

AT&T filed a complaint with the FCC Thursday alleging that Cox Communications' "exclusive broadcasts of Padres baseball games violate agency rules against unfair competition," according to Jonathan Sidener of the SAN DIEGO UNION-TRIBUNE. AT&T, "which offers the competing U-Verse alternative to cable," said that the FCC "classifies local sports as 'must-have' content that cannot be withheld from competitors." In its complaint, AT&T said that Cox has "refused to negotiate rights to the Padres broadcasts, a move that is 'exacting a severe toll on AT&T's (U-verse) subscription figures in San Diego.'" Cox countered by saying that the "exclusive deal with the Padres is legal." Cox Channel 4 San Diego VP & GM Craig Nichols: "We're living within the rules Congress set up. We can choose who we provide our content to." He added, "We've invested over $100[M] in creating Channel 4. They've come late to the game and are looking for an easy way to get access to our programming." AT&T in a statement said that Cox "licenses its Channel 4 content to Time-Warner Cable, which offers services primarily in non-competing portions of San Diego County." The company added that Cox' "refusal to license Padres games to AT&T is clearly an anti-competitive move" (SAN DIEGO UNION-TRIBUNE, 9/12). AT&T said that it "can't compete effectively in the area without the net and believes the MSO is engaging in unfair competition because it offers the net to other video providers" (CABLEFAX DAILY, 9/12). Cox Dir of Media Relations David Grabert: “Our distribution of the Padres content is entirely consistent with applicable law and regulations; we are not required to share the benefits of Channel 4 San Diego and its Padres content with AT&T" (MULTICHANNEL.com, 9/11).