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Cable Regulation: A Counterrevolution


Article # : 10502 

Section : CURRENT ISSUES
Issue Date : 1 / 1993  1,952 Words
Author : Cliff Kincaid
Cliff Kincaid is a media analyst based in the Washington, D.C., area.

       The communication explosion is threatening to leave broadcast television in the dustbin of history. Competition from cable, VCRs, satellite dishes, and other technologies has cut deeply into audiences of once-powerful ABC, CBS, and NBC.
       
       Cable itself revolutionized communications by promising improved reception of existing broadcast signals and providing viewers with satellite-delivered cable networks. The growth has been enormous: In 1976, only one-third of television households had access to cable; by 1990, that figure had climbed to 91 percent. The number of subscribers rose during this period from 51 to 61 percent.
       
       Yet, news junkies and consumers stand today on the verge of another revolution that could bring you several hundred channels, in which you could listen to, communicate with, and watch people all over the country--indeed, the world. It would be a system bringing you movies, sports, and educational videos. There could be news, information, and entertainment options to satisfy the widest possible variety of tastes. But more importantly, you could not only receive but also send information and pictures from your computer.
       
       In their national best-seller, Megatrends 2000, John Naisbitt and Patrica Aburdene write, "We are moving toward the capability to communicate anything to anyone, anywhere, by any form--voice, data, text, or image--at the speed of light."
       
       Government obstruction
       
       There's just one problem: Government stands in the way. The fight over the cable TV bill passed by Congress over a presidential veto demonstrates how government is sabotaging rather than facilitating technological change and freedom of choice.
       
       Cable TV is a bit player in the revolution, but the setback it suffered represented government at its worst. Both federal and local governments expanded their power over cable, but they did absolutely nothing to increase competition or promote new technologies.
       
       First, the bill prevented telephone companies from carrying television services over their rapidly expanding fiber-optic telephone lines. And second, the new regulations it imposes depress profits, making it financially impossible for the cable TV industry to install those lines. The net effect of the bill will be to launch a counterrevolution that will limit choices.
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