“Perhaps you should switch to another cable company… oh, that’s right, we’re the only one in town.” (credit: Viacom)

A cable lobby group that represents more than 900 small and medium-size providers is angry that Charter Communications will be competing against other cable companies.

Cable providers usually avoid each other’s territory, choosing not to “overbuild” in cities and towns where other cable networks already exist. But Charter agreed to bring some competition to the cable market in exchange for the Federal Communications Commission’s approval of its purchase of Time Warner Cable and Bright House Networks. Specifically, Charter will deploy high-speed broadband to at least 2 million residential and small business locations, of which at least 1 million must be in areas served by at least one other provider.

Naturally, cable companies aren’t happy about facing competition. The American Cable Association (ACA), the lobby for smaller providers, said yesterday that it is “troubled” by the FCC’s overbuilding requirement on Charter. But instead of just arguing that competition will hurt small cable companies, the ACA also claims that competition will be bad for customers.