Verizon, AT&T get sports win with FCC order

WASHINGTON (Reuters) - U.S. regulators handed phone and satellite companies a victory in the pay television market by preventing cable operators from blocking access to some sports programing.

The U.S. Federal Communications Commission voted 4-1 on Wednesday to establish a formal process to apply for sports programing and for cable operators to appeal. Republican commissioner Robert McDowell voted against the rule.

"Today''s action represents a major step toward realizing the promise of a competitive marketplace for video services," FCC Chairman Julius Genachowski said at an open FCC meeting.

"The bottom line is that viewers should not be unfairly forced to choose between the sports teams they love and the provider they prefer," he said.

The issue of competitors'' ability to access programing is likely to be a key issue when the FCC reviews the proposed joint venture between Comcast Corp and General Electric Co''s NBC Universal.

Verizon and AT&T want to carry games by the New York Knicks basketball team and the New York Rangers, New York Islanders and New Jersey Devils ice hockey teams carried by the Madison Square Garden (MSG) network.

In August, AT&T filed a complaint with the FCC alleging anti-competitive practices against Cablevision Systems Corp, which owns MSG, the Knicks and the Rangers.

Bethpage, New York-based Cablevision said it is pleased that the FCC added a complaint process that allows incumbent cable operators to present their case and appeal a decision.

"Verizon and AT&T do not need a regulatory bailout in order to compete," the company said in a statement.

AT&T''s senior vice president for federal regulatory affairs, Bob Quinn, said in a statement that the FCC action means "consumers will have more choices."

AT&T provides its customers in Connecticut with standard MSG programing, but was not able to access high-definition programing. AT&T also complained that Cox Communications was blocking access to carry San Diego Padres baseball games.