An encouraging development regarding DirecTV and Major League Baseball's reported exclusive deal that would deny cable TV customers access to the MLB Extra Innings PPV package: In response to a letter from Sen. John Kerry (D-MA) expressing concern about the exclusive arrangement, FCC Chairman Kevin Martin said the Commission would investigate.

In Kerry’s letter, he wrote, “I am opposed to anything that deprives people of reasonable choices. In this day and age, consumers should have more choices – not fewer. I'd like to know how this serves the public – a deal that will force fans to subscribe to DirecTV in order to tune in to their favorite players. A Red Sox fan ought to be able to watch their team without having to switch to DirecTV.” Martin wrote back to Kerry saying he also is concerned about the reported deal and has asked both DirecTV and MLB for information. “Once we have this information, we will report to you on the deal's implications for consumers and any recommended changes to the law to ameliorate any harm to consumers,” Martin wrote to Kerry.

I’m kind of crazy about music. And while I can hardly play a kazoo with any melodic proficiency, my music library is by far one of my most prized possessions. So when I finally became tired of listening to my music over the tiny speakers on my laptop, it’s no surprise that I jumped for a set of 5.1 surround speakers and complementary receiver. After a couple of hours of reading comparisons and shopping online, I admittedly went a little overboard and bought a $500 system that I paid $230 for on Overstock.com.

In “Consumers finally get a grip on VoIP,” USA Today highlights the rapid growth of residential telephone service delivered via Voice over Internet Protocol technology. According to the article, there were about 8.6 million VoIP users at the end of 2006, with 22.5 million predicted by 2010. As the article points out, those customers are attracted mainly by the robust phone features and lower prices enabled by VoIP. But the article also illustrates the continuing confusion between the two methods of VoIP delivery. One is Internet telephony, in which calls are routed over the World Wide Web and are therefore subject to the speed limitations of the user’s Internet connection and traffic on the public Internet. The other method is managed VoIP, in which calls are routed over private, managed backbone networks and are therefore not dependent on broadband connections or the vagaries of the public Internet. The millions of customers who get their phone service from cable companies (including Cox Communications) experience the managed method. Today’s article—indeed, most pieces about VoIP—didn’t make a clear distinction between the two delivery methods. But while customers ultimately don’t care how their calls are routed, the difference between the two is critical—as it’s ultimately a matter of quality and reliability.

Who’s responsible for keeping kids safe and healthy in a world saturated by mass media? That was one of the difficult questions tackled by an impressive array of heavy-hitters from media, academia and government in this week’s “Beyond Primetime” conference in New York. Not surprisingly, a definitive answer didn’t emerge, and in fact there were far more questions posed than answers given. But the panelists and sponsoring organizations—Common Sense Media and Aspen Institute—gave it a commendable go and delivered compelling discussion, provocative insight and at least some common ground of agreement.

“It would be wrong-headed of me or (fellow panelists Les Moonves and Harvey Weinstein) to say our job is to enforce a moral construct as to what’s appropriate for America to see,” said Time Warner’s Richard Parsons on the “What is the Responsibility of Media Leaders?” panel. It was one of several variations of the we-give-consumers-what-they-want answer heard throughout the conference. In Monday’s opening panel, for instance, Comcast’s Brian Roberts noted that ratings for “E! True Hollywood Story” are twice as high for episodes in which the Hollywood subject dies or suffers some tragic fate than for episodes with happier endings.

Is AT&T’s Project Lightspeed about its network upgrade or its PR function? It’s nice to see the media holding a phone company responsible for the promises it makes to Wall Street and to consumers.

In “Lightspeed’s Slow Start,” four BusinessWeek reporters offer a skeptical view of the viability of AT&T’s plans for offering video service. The magazine takes the RBOC to task for failing to launch the service in the promised 15 to 20 markets by the end of 2006 (in November it was available in only two markets) and chides the company for the flurry of year-end press releases that announced an additional nine markets launched. Despite this noise in the last 10 days of December, BusinessWeek points out that the company’s efforts were still “short of its original target.” And, as we noted last week, its U-verse TV service added no customers in the fourth quarter.

In Kevin Maney’s recent USA Today article he cites that the FCC 1968 Carterfone Decision could serve as a good example for the cable industry on how regulation can produce innovation and price competition. That ruling paved the way for any person to pull in radio transmissions & connect them to a regular telephone network - allowing a person to get on a radio, patch into a Carterfone on land, connect the phone line & complete a call. According to Maney, the ruling ‘unbundled’ the telephone system & opened the door for competition in the market.

The FCC’s integration ban is unsuited to the increasingly competitive converged world of video communication services. According to the FCC, the purpose of the ban was to create a competitive market for cable set-top boxes, so people could buy their own set-tops instead of having to rent them from a cable company. In actuality, the recent denial of cable's waiver requests would mean that, starting in July, consumers would be paying another $2 to $3 per month.

For many consumers, the center of attention during this Sunday’s Super Bowl won’t be the Colts or the Bears but rather the new flat-panel HDTV they’ve purchased just in time for the big game. A survey released earlier this week by the National Retail Federation said 2.5 million consumers planned to upgrade their screens for the game, up from 1.7 million last year. The Super Bowl remains the single greatest spotlight for television technology; Hallmark reports more people will attend parties on Super Bowl Sunday than on New Years Eve. And it’s all to sit down and watch a couple hours of good ol’ TV.

FCC Chairman Kevin Martin testified before the Senate Commerce Committee’s Oversight Hearing On Telecommunications Issues earlier today. Addressing the price of basic cable, Martin said it has “gone up at a disproportionate rate...when compared against over communications sectors.” (Click here for his complete remarks.) In response, the National Cable & Telecommunications Association released the following statement: “A real analysis of today’s marketplace shows the actual price of cable’s bundle of video, Internet and telephone services is 20 percent lower than the price of the same package of services 10 years ago. Chairman Martin's comments reflect an outdated, incomplete and wholly inaccurate analysis that doesn't reflect the realities of today’s marketplace, where consumers enjoy more competition, greater choice and better services than ever before.”

This year at Cox Communications, we’re celebrating 10 years of delivering a bundle of cable, telephone and high-speed Internet services. As our 2006 accomplishments demonstrate, the benefits of bundling continue to make a huge positive impact. Some highlights: The number of new cable customers who also subscribe to Cox’s phone and/or Internet services is 60%, a record high. Customer churn (i.e., disconnects) is at an all-time low. In all, as of the end of 2006, Cox had 3.4 million “bundled” customers, representing an increase of about 15% over 2005. The bundle will soon grow larger with the addition of a fourth service, wireless. In related bundling news, Verizon said this week that, in an effort to compete with the cable bundle, it will integrate its wireless service, previously offered separate from landline and other services, into its bundle. Verizon also said its FiOS service added 89,000 TV customers in the quarter, although the company's profits declined 38% due to its aggressive fiber roll-out. Meanwhile, AT&T’s U-verse TV service added zero customers in the fourth quarter.