Byline: Associated Press Staff report Associated Press Associated Press Associated Press
The Federal Communications Commission on Thursday took the first step toward allowing telephone companies to carry cable programs and enhanced video services over their wires.
Such "video dial tone" offerings would "ensure that cable operators face direct, head-to-head competition in the delivery of cable services to consumers," said Commissioner Sherrie Marshall.
The cable industry quickly responded with several criticisms of the proposal, including a suggestion that phone companies might subsidize the ventures from profits generated by basic telephone service, which is a regulated monopoly with guaranteed profits.
"Until and unless the (telephone companies') monopoly in voice telephony is ended, no level of government …
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