Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 2, 1993 TAG: 9304020214
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
CABLE TV PRICE CUTS ORDERED
Millions of Americans will pay 10 percent to 15 percent less for cable TV under a rule adopted Thursday by regulators reasserting their authority over an industry criticized for skyrocketing prices.The Federal Communications Commission voted 3-0 to cut cable rates 10 percent from their Sept. 30 level and erase any increases operators imposed since then.
The rollbacks will apply to 57 million households that subscribe to more than 11,000 cable systems licensed by communities and could save consumers $1 billion a year, officials said.
Local authorities must apply the FCC guidelines for basic service - local broadcast signals plus any public-access cable channels.
The FCC's rate formula also applies to so-called expanded basic service.
The FCC will take complaints from consumers that they are paying unreasonable charges for that service, which typically includes superstations and satellite-delivered channels such as ESPN and CNN, C-Span and the Discovery Channel.
Premium channels like Home Box Office or pay-per-view services are not covered.
Subscribers are not likely to see any reductions for six months, FCC officials said. Cable operators are free to cut unreasonably high rates now to avoid paying refunds.
The FCC also adopted new rules that require programmers to make their channels available to competing cable operators at similar prices. Companies offering new services have complained of unfair discounts that they say stifle competition.
Commissioner Ervin H. Duggan said this rule would have a more lasting benefit for consumers by promoting competition between cable TV and new services which will be offered by direct satellite broadcasters or phone companies.
The rollbacks were authorized by a 1992 law that put the industry under federal control for the first time since 1986.
Congress passed the law over President Bush's veto, responding to complaints by customers of gouging sanctioned by local monopoly.
Anticipating new regulations, many cable companies increased their rates 5 percent to 7 percent since fall.
The new rules could mean a 15 percent to 17 percent cut in monthly cable bills for some, depending on the increases since Sept. 30.
The FCC also voted to freeze cable rates for 120 days and require cable companies to charge customers separately for hookups, remote-control devices and additional outlets.
The FCC said cable rates were 10 percent higher in communities with no competition than in those with more than one company.
A typical monthly bill for expanded basic service that increased 5 percent since fall to $21 would be rolled back to the Sept. 30 level of $20 and could be cut another 10 percent to $18.