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1 (April 5, 2004)

handle is hein.crs/crsuntaahyn0001 and id is 1 raw text is: Order Code RS21775 Updated April 5, 2004 CRS Report for Congress Received through the CRS Web Cable Television: Background and Overview of Rates and Other Issues for Congress Justin Murray Information Research Specialist Information Research Division Summary This report presents information on the history of federal regulation of the cable television industry and background information on cable rates and other cable industry issues. Cable service is received by 70.5 million television homes, or approximately 74.9 % of all pay television subscribers. The Telecommunications Act of 1996, 110 Stat. 56, P.L. 104-104, eliminated most cable rate regulation beyond the basic tier of services as of March 31, 1999. Some small cable operators were freed from regulation upon the enactment of the law, but in most cases, rates for a basic tier of services continue to be regulated. The Telecommunications Act also opened up new areas of competition between telephone companies and cable companies. This report will be updated as legislation or news events warrant. History of Cable Rate Regulation The Cable Communications Policy Act of 1984, 98 Stat. 2779, P.L. 98-549, established for the first time a national regulatory policy concerning cable television communications. The act established a comprehensive cable regulatory scheme delineating regulatory authority among the federal, state, and local levels. Increasing cable service rates and customer service complaints, however, prompted Congress to revisit the law as local authorities and consumer groups lobbied for new legislation. On October 5, 1992, Congress enacted the Cable Television Consumer Protection and Competition Act of 1992, 106 Stat. 1460, P.L. 102-385. This law addressed such issues as cable rates, must carry, retransmission consent, program access, franchising authority, service standards, and more. Promulgation of regulations required by the 1992 act was done by the Federal Communications Commission (FCC). The regulations were completed in stages, according to dates set by the act. The FCC's first set of cable rate rules implementing this act went into effect September 1, 1993. The FCC expected, on average, a 10% reduction in overall cable bills. However, on average did not mean all rates decreased 10%, or even that all rates Congressional Research Service *** The Library of Congress

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