Sprint-Cable Tie-in May Be Illegal

Sprint's plans to link a customer's cable account to their cell phone may run into trouble as new FCC privacy regulations announced Monday will forbid such an offering. Customers will be reqired to opt into the program.

Usually, rates of opting-in among consumers for services are low, which leads some to believe it will cripple adoption of the cable-wireless tie-in.

The telecommunications provider signed a 20-year deal with Comcast, Time Warner Cable, Advance/Newhouse, and Cox Communications in November 2005, which was exclusive for three years.

Wireless phones offered through the joint venture will integrate cable and wireless services onto a single device. For example, a user will be able to program his home cable box to record programs through the mobile phone.

Comcast confirmed to the Wall Street Journal that the rules could be a problem, but declined to elaborate until it had more time to review it more closely. Lawyers echoed those concerns, saying that it will likely prevent the companies from automatically offering such a service.

A legal challenge to the policy could be mounted, sources tell the WSJ. At issue will be the laws that forbid the sharing of personal data with "joint venture partners or independent contractors."

While the new regulations are meant to stop pretexting, it may also pose problems for those companies who are looking to provide comprehensive service packages with their partners, like Sprint and the cable companies.

"Compliance with our consumer protection regulations is not optional for any telephone service provider," FCC chair Kevin Martin said in support of the order. "We need to take whatever actions are necessary to enforce these requirements to secure the privacy of personal and confidential information of American customers."