MIDDLETOWN, N.Y.--(BUSINESS WIRE)--Oct. 6, 2006--Mediacom
Communications Corporation (NASDAQ: MCCC) has filed an antitrust
lawsuit against Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) in the
Federal Court for the Southern District of Iowa.
The lawsuit alleges that Sinclair violated the Sherman Antitrust
Act by conditioning its consent to carriage of its stations in certain
markets, such as Des Moines, IA or Mobile, AL, upon Mediacom's payment
for carriage of Sinclair's stations in more than a dozen other
markets. The ultimate result of this "tying" of Sinclair's stations
would be to increase the price of cable television to consumers by
millions of dollars.
"Throughout our retransmission consent negotiations, Sinclair has
insisted that all of its stations in our footprint be bundled in a
single package without consideration to the differences in the markets
of the various stations. We believe this all-or-nothing scheme
violates antitrust law," said Rocco B. Commisso, Mediacom's Chairman
and CEO.
In recent years, Mediacom officials have been at the forefront of
efforts to control rapidly escalating programming fees demanded by
content providers. Rising programming costs have been largely
responsible for increases in cable rates for consumers. Commisso has
been an outspoken advocate for retransmission consent reform on
Capitol Hill, at the Federal Communications Commission and in industry
and public forums.
"We believe that Sinclair is holding our customers hostage in the
Des Moines market in exchange for carriage of other stations in
markets half a continent away. It is not fair to our customers who
ultimately bear these costs and we have decided to draw the line by
asking a federal court to stop these practices by Sinclair," concluded
Commisso.
Mediacom Communications is the nation's eighth largest cable
television company and among the leading cable operators focused on
serving the smaller cities and towns in the United States. Mediacom
Communications offers a wide array of broadband products and services,
including traditional video services, digital television,
video-on-demand, digital video recorders, high-definition television,
high-speed Internet access and phone service.
CONTACT: Mediacom Communications
Marvin Rappaport
Vice President of Government Relations
845-695-2704
845-649-6756 cell
SOURCE: Mediacom Communications