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Dear Reader:

We wanted to let you know that, after nearly three years of operation on the World Wide Web, National Journal's Insider Update: The Telecom Act ceased publication as of January 1, 2008.

We took this step at a time when the National Journal Group is moving to increase technology coverage -- including reporting on telecommunications and broadcasting issues -- in several of its other publications. In particular, National Journal's CongressDaily -- our twice daily publication for Capitol Hill insiders -- will be adding staff in the coming weeks for this purpose.

CongressDaily will feature the kind of detailed coverage of telecom issues, both on Capitol Hill and at the Federal Communications Commission, that you are accustomed to seeing in Insider Update -- plus a lot more.

If you are interested in a trial subscription to CongressDaily, please call 800-424-2921 or e-mail us at memberships@nationaljournal.com. Thank you for your readership and support of Insider Update, and please don't hesitate to write to me at lpeck@nationaljournal.com if you have any questions or concerns.

With best regards,
Lou Peck Editor In Chief

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Court Backs Comcast In Dispute With NFL

By Michael Martinez

(Monday, May 14) The television network owned by the National Football League is moving to challenge a recent court ruling in New York that lets Comcast carry it on a special tier for sports programming.

In a decision made public late last week, the New York Supreme Court found that Comcast, the nation's largest cable provider, should be allowed to offer the NFL Network in a niche package with fewer subscribers, potentially cutting off the NFL from millions in revenue. Comcast pays the league a fee for each subscriber with access to the channel.

The NFL Network sued Comcast last fall after the company decided to move the channel off of a digital packaging tier with about 7 million viewers onto the sports tier, which is only available to customers willing to pay more to receive the extra programming. According to Comcast, such a move is allowable under the terms of the company's agreement with the NFL Network.

Judge Bernard Fried agreed with Comcast in his decision. He did not find "any ambiguity" in previous agreements between the parties that would have prohibited Comcast from moving the NFL Network onto a niche tier.

Comcast "is entitled to distribute the NFL Network on a sports tier under the agreements between the parties," he said.

NFL spokesman Seth Palansky said in an e-mail that the network will challenge Fried's ruling. He did not elaborate.

The NFL launched the network four years ago, boasting 24 hours per day of original programming. It aired eight live games last fall.

The Senate Judiciary Committee held hearings last year examining the antitrust implications of exclusive sports programming packages, including those for professional football. Federal lawmakers also have expressed concerns about an exclusive deal between Major League Baseball and the satellite operator DirecTV that lets subscribers watch out-of-market games.

In a statement, Comcast Executive Vice President David Cohen said his company "bargained explicitly" for the option to distribute the NFL Network on a sports tier because it was the "best and fairest solution" for its customers.

"This decision means that our customers who are NFL fans will be able to watch the NFL Network without burdening those who are not NFL fans with extra costs," he said.


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