Unlike most other cable networks, CSN Philadelphia is distributed only via microwave and fiber optics. The infrastructure Comcast uses for this was left over from the now defunct PRISM Network. Since CSN Philadelphia does not uplink its signal to any satellite, Comcast was able to avoid an FCC regulation that requires most television channels to be offered to direct broadcast satellite (DBS) companies (known as the "terrestrial loophole"). As a result of limited availability, DBS providers DirecTV and Dish Network realized far slower penetration into the Philadelphia market. Craig Moffett, a senior analyst with Sanford C. Bernstein & Co. L.L.C., estimated the number of potential customers lost due to the loophole at 450,000.[2]
On January 20, 2010, the FCC voted 4-1 to close the terrestrial loophole.[2] Lawyers for DirecTV and Dish Network had attempted to show that Comcast Corporation, who owns both CSN Philadelphia along with most of the cable systems in the Philadelphia market, acted in restraint of trade because it did not uplink CSN Philadelphia to satellite. Comcast does not plan to appeal the decision, so DirecTV and Dish can negotiate immediately to add the channel to their lineups. Both providers formally asked for access to the channel on June 25, 2010. [3] On July 28, 2010, it was reported that Comcast is in talks with DirecTV and Dish Network for carriage of CSN Philadelphia.
