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1 i (1994)

handle is hein.amenin/aeiacrx0001 and id is 1 raw text is: Bitter controversy has marked the brief history of cable television-par- ticularly over monopoly power and the role of gov- ernment in protecting con- sumers. Responding to large price increases to ca- ble subscribers, Congress moved in 1992 to subject the industry to controls until it faces effective competition. Leland L. Johnson searches out and assesses the most likely sources of cable competition during the 1990s and beyond. Among questions he addresses in detail are: With the use of fiber-optic tech- nologies for both telephone and video services, what are the prospects for telephone companies to compete against incumbent cable opera- tors? What about direct broadcast satellites, terrestrial wireless video systems, and today's broadcasting stations if converted to offer advanced multichannel services? How soon is effective competition likely to be achieved? From these possibilities, he focuses on the design of public policy flexible enough to accommodate whatever technological and marketing opportunities and disappointments emerge. His objective is a framework to ensure that the most efficient firms survive, rather than those whose success stems either from their anticompetitive activities or from handicaps imposed on their competitors through misguided legislative and regulatory constraints. He concludes with recommendations for specific actions by Congress, the Federal Com- munications Commission, and state and local governments. recently retired from RAND Corporation, is a consultant in telecommunications economics. Massachusetts Institute of Technology Cambridge, Massachusetts 02142 JOHWH 0-262-10054-1 Publisher for the American Enterprise Institute 1150 17th Street, N.W., Washington, D.C. 20036 9 780262 10054

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