FCC Helps Phone Companies in Cable Flap

The Federal Communications Commission has given telephone companies a break in their efforts to move into U.S. cable TV markets.

The divided FCC voted to significantly limit the amount local officials can demand for franchises.

But, the latest step in the intensifying battle over who will control video, voice and Internet is expected to be challenged in court, The Washington Post said.

The FCC voted 3 to 2 along party lines to eliminate what Republican supporters said were unreasonable demands and delays.

The measure requires local regulators to rule on franchise applications within 90 days for companies with wires in place. It also prevents them from demanding fees or in-kind contributions exceeding 5 percent of the TV revenues.