FCC privacy rules can KO CableCos Wireless plan

The Federal Communications Commission (FCC) just announced a new rule that makes it difficult for anyone to get your information from the telephone company, without a password set up by the telecom customer. It seems like such a great idea because it prevents pretexting – you know the whole scandal that involved a couple of reporters and Hewlett-Packard.

FCC Chairman Kevin Martin in a statement said that the new order “takes a strong approach to protecting consumer shopping.” Wow, Martin actually watching out for the American people! But then a proverbial Mr. T screamed in my ear – FOOL! How can you think that Martin would do something like that?

The Wall Street Journal says that the new order can put a hex on the proposed wireless service being planned by cable companies and Sprint Nextel. Cable companies have plans to use Sprint’s wireless and build out a four-play offering that can a big bite out of phone companies’ business. The cable companies are already putting the hurt on phone companies’ bread-and-butter business.

WSJ points to a line buried in the order that prevents telcos from sharing private data with “joint venture partners or independent contractors.” No wonder some folks say at Comcast are concerned, according to the WSJ story.