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

DATE: WEDNESDAY, May 25, 1994                   TAG: 9405250149
SECTION: BUSINESS                    PAGE: C-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: NEW ORLEANS                                LENGTH: Short

FCC WANTS ACCURATE CABLE RATE EXPLANATIONS

Understanding what cable television companies charge viewers sometimes can be tough. Even the top cable regulator said he's confused by some companies' efforts to explain.

Federal Communications Commission Chairman Reed Hundt said he has seen letters to consumers explaining the rate changes expected to take place this summer and fall.

``Speaking as a consumer ... they fall into two categories: one, intimidating, confusing and anti-government; and two, straightforward announcements of consumer benefits in terms of price and quality which equal value. In other words, good marketing,'' he said Tuesday.

Addressing the National Cable Television Association's convention, Hundt said what cable companies do over the next several months will be crucial in shaping consumer reaction to the new rate regulations.

And he urged them to be accurate and clear.

Decker Anstrom, president of the cable association, agreed. ``In the end, the consumers will be the jury,'' he said.

The new regulations are designed to cut cable rates an average of 7 percent. That comes on top of a 10 percent reduction that took effect in September. The new regulations took effect May 15, but most customers won't see a change in their monthly bills until at least July.

The cable industry is challenging the rate regulations in a federal appeals court and insists that they will slow or block the offering of new channels and services to consumers.

by CNB