
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, June 17, 1993                   TAG: 9306170117
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

CABLE USERS LOSING

Consumers are losing more than $250 million because federal regulators delayed enforcement of a law covering TV cable rates, a consumer advocate and the lawmaker who pushed the legislation through Congress said Wednesday.

No one was expected to get rebates or rate reductions quickly.

But under the Federal Communications Commission's original plan, consumers and franchising authorities would have been able to start filing complaints next Monday accusing their local cable companies of overcharging.

If the rates truly exceeded the amount allowed under the FCC's new formula, the cable operator would have to roll back prices and pay rebates retroactive to June 21.

But last week, the FCC decided to delay all enforcement, including the retroactive date, to Oct. 1.

FCC Chairman James Quello said the FCC and the cable companies needed more time to prepare for all the paperwork enforcement would require. He also wants more money from Congress for attorneys and accountants to do the work.

"Going forward at this time would have resulted in mountains of complaints and certification requests piling up at the commission, leading to chaos and confusion among subscribers cable operators and franchising authorities, and resulting in numerous legal challenges," said Quello.

Rep. Edward Markey, D-Mass., chairman of the House Energy and Commerce telecommunications subcommittee, opposes the delay and has called Quello and the other two FCC commissioners before his panel today to explain their problems.

"Cable consumers were lured into believing that relief was on its way to the tune of $1 billion in annual savings," said Markey. The FCC had estimated that from two-thirds to three-quarters of the nation's cable companies were overcharging by $1 billion.

Delaying the enforcement date means consumers will be stuck with those overcharges for another three months, amounting to $250 million, said Markey.

Gene Kimmelman, of the Consumer Federation of America, estimated the amount could be more than $300 million if the expected savings on equipment and other parts of cable service are included.

by CNB