Posted: Thurs., Jul. 30, 1998

New bill offers more choice to cable auds

Solons helping subscribers pick p'gramming

WASHINGTON -- Cablers are being spurred into giving subscribers lower-priced alternatives to the basic cable package in a bill introduced Wednesday by House telecommunications subcommittee chairman Billy Tauzin (R-La.).

The bill, co-sponsored by Rep. Ed Markey (D-Mass.), would allow local cable regulators to decide if cable systems are offering subscribers "sufficient choice" when it comes to programming and prices of basic cable. If the local regulators determine there is not enough choice, the system will continue to be regulated by the Federal Communications Commissiondespite a looming March 31, 1999, deadline for deregulating the basic cable package.

"The problem with cable today is that people are forced to buy programming they don't want to get programming they do want," said Tauzin.

Of course, the proposal is not good news for the cable industry, which has built its economic foundation on the basic cable package. If consumers are allowed to tinker with their basic cable package, it could wreak havoc on every cable network.

"The Tauzin/Markey regulatory scheme outlined today will be an unwieldy, confusing, disruptive, bureaucratic nightmares -- and will empower thousands of city councils to dictate TV program lineups. It's more government where less government is necessary," said National Cable Television Assn. prexy Decker Anstrom.

In addition, the bill requires cablers to set up a "skinny tier" of programming that includes only the broadcast and public access channels. The goal of the provision is to give consumers the ability to sign up for DBS service for programming such as MTV, USA and CNN without losing access to local broadcast channels.

The bill also would force companies such as Disney and the broadcast networks to sell programming to satellite companies and other cable competitors. Currently, companies that don't own cable systems are allowed to sign exclusive deals for programming. Again, the so-called "program access" provision is designed to help the burgeoning DBS industry, which has complained that cable is hoarding valuable programming.

"There is no justification for extending program access regulation to non-vertically integrated networks and local cable channels," said Anstrom.


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