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

DATE: TUESDAY, February 7, 1995                   TAG: 9502070083
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

FCC TO ALLOW SOME CABLE NEGOTIATIONS

Federal regulators freed local governments and small cable systems Monday to negotiate rates for the most popular cable programming, system improvements and other business expenses.

The Federal Communications Commission action is designed to reduce regulatory burdens on small companies.

The new rules affect thousands of cable systems but not many cable subscribers, FCC and industry officials said.

About 62 percent of the nation's 11,000 cable systems have fewer than 1,000 subscribers and would be eligible to enter into rate agreements. Those systems cover just 3.5 percent of all cable customers.

The FCC also will let companies that own multiple systems serving fewer than 15,000 customers negotiate rates with local governments.

The new rules give systems and local governments authority for the first time to set rates for ``expanded basic'' programming.

They also let systems and local governments negotiate rates for basic service, system upgrades and the addition of new services.

The cable industry advocated the rule changes, saying it will relieve small companies from having to make expensive rate filings to the FCC.

by CNB