FCC: Cable TV Lacks Competition, Innovation

As the Internet continues to grow and mobile phones evolve, cable television lacks innovation and policy changes are needed to fix that, FCC chairman Julius Genachowski says.

Genachowski spoke with CNBC’s Jim Goldman in a live interview from the D8 tech conference in Los Angeles on Wednesday’s Fast Money. For innovation in cable television to occur, he suggests opening up the broadband policy. He added that there’s a law in place, which requires competition in set-top boxes and says it hasn’t worked. The cable companies have been cooperative in looking at potential changes, he says, but more needs to be done. The FCC is looking at new ways to generate competition.

Goldman also asked if the issue of net neutrality has bruised his agency’s relationship with Congress, as discussions on the matter continue. Genachowski says his agency has a “healthy” relationship with lawmakers. He says it’s that relationship that will help them find ways to innovate and invest in the Internet, which he says has been successful because of the freedom users have.

On another note, Genachowski says if the demand for smart phones continues, there will be a wireless spectrum crunch. He says the FCC is working on policy to address the demand issue.

See the entire interview by watching the video here.

What’s the trade?

Akamai Technologies is Guy Adami’s pick. Managing director of Drakon Capital, Adami likes the Cambridge, Mass.-based company because of the sizable gains posted today.

“A lot of people win,” Adami says. “They seem to win the most.”

Joe Terranova, chief market strategist for Virtus Investment Partners, likes Juniper Networks because it quickly delivers content.

Brian Kelly, president and founder of Kanundrum Capital, says Vmware is “perfectly positioned” to muddle through a broadband crunch by “making due with what you have.”

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Trader disclosure: On June 2, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (SWN), (GLD), (IPSU), (RSX), (PFE), (TER), (APA), (AXP), (BMO), (BBY), (DIS), (XCO), (AAPL), (CVS), (IPI), (TEVA), (FXB); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT); Kelly Owns (FXE) Calls; Kelly Owns (IBM) Calls; Kelly Owns (STD) Calls; Kelly Owns (NBG) Calls; Jon Najarian Owns (GS), (JPM), (CAM), (BP); Finerman’s Firm Owns (AAPL); Finerman Owns (BAC); Finerman’s Firm Owns (BAC); Finerman Owns (BBY); Finerman’s Firm Owns (BBY); Finerman Owns (BP) Calls; Finerman’s Firm Owns (GOOG); Finerman’s Firm Owns (GS) Calls; Finerman Owns (HPQ); Finerman’s Firm Owns (HPQ); Finerman Owns (JPM) Calls; Finerman’s Firm Owns (JPM); Finerman Owns (RIG) Call, Puts & Stock

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, LTD.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
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Virtus Investment Partners Owns More Than 1% Of (DRYS)

For Brian Kelly
Kanundrum Owns (IBM)
Kanundrum Owns (XLK)
Kanundrum Owns (GFI)
Kanundrum Owns (FCX)
Kanundrum Owns (CLF)
Kanundrum Owns (GLD)
Kanundrum Owns (AUY)
Kanundrum Owns (GFI)
Kanundrum Owns (STD)
Kanundrum Owns (NBG)
Kanundrum Is Short (CME)
Kanundrum Is Short (STT)
Kanundrum Is Short (XLF)

For Collin Gerry
Raymond James & Associates co-managed a follow-on offering of (HERO) in Sept. 2009 Raymond James & Associates is a nasdaq market maker in (HERO) Raymond-James & Associates received non-securities-related compensation from (HERO) in past 12 months

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Levy Owns U.S. Tresuries
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