The terrestrial loophole argument doesn't hold water - Cablevision lets Time Warner carry MSG HD. Cablevision won't even approach the table to discuss the carriage with Verizon, so it isn't a question of $$$..
This is a pure example of a monopoly refusing to allow the competition access. TW doesn't compete with Cablevision, but VZ certainly does.
reply to nycdave The loop hole does cover CV and TWC as they can send the signal using fiber right to the other's headend and still by-passes the birds.
and like Majortom said, VZ does the same thing with 3rd party ISPs.