Blame the New York Times for the spluttering over coffee at the Saturday breakfast tables of senior cable executives this weekend. The story claimed the U.S. Federal Communications Commission is preparing to impose new regulations to open up the cable industry if the industry is found to have grown too big under a so-called “70/70″ rule, which kicks in if cable is available to 70 percent of U.S. households and if 70 percent of them subscribe.

If imposed it could force operators to carry independent networks or put it cap on how widely any single cable owner can reach. By Monday, Sanford Bernstein analyst Craig Moffett said the story had overstated the current situation.

He writes: The basis for invocation of the 70/70 rule appears untenable. The 70/70 rule requires that cable be available to 70% of U.S. households (it clearly is) and that cable have reached 70% penetration of those households (it isn’t close). By our estimation, cable penetration of cable-available homes is between just 50 and 54%. We don’t believe any study could conceivably satisfy the 70/70 rule.

Brace for a showdown.

(New York Times)

Keep an eye on:

• The Hollywood screenwriters strike is less than a week old, but already concerns are spreading that a long walk-out could drastically change the face of television advertising. (Reuters )
• Walt Disney plans to enter the Japanese mobile phone market early next year using local carrier Softbank Corp’s network. (Reuters )
• Google is secretly talking with Simon Fuller, the British entrepreneur behind the Spice Girls, about a joint venture, prompting speculation that Google’s plans for the TV market include generating original content and competing with major broadcasters. (Guardian)
• Bloggers are gaining momentum in China, the world’s top jailer of journalists. (Reuters Video, Below)

(Photo: Reuters)