The Word On Cable:
City Officials Have To Make Their Case

By LESLIE WOLLACK

Cities would not gain any of the additional authority they have been seeking for regulating cable television unless local officials make their case to their congressional delegation as quickly as possible.

Pending Senate Committee action on cable reregulation legislation will not resolve the problems consumers have faced over escalating cable rates, service and signal quality issues in its current form.

The Senate Commerce Committee will meet shortly to consider a staff legislative draft for S. 1880, the Cable Television Consumer Protection Act. This draft is expected to be the vehicle for further Senate action on cable regulation.

Hearings on the measure are scheduled for March 29 and April 4 with a Committee mark-up following the Easter Recess.

The staff proposal circulated several weeks ago will be the basis for hearings and the mark-up. The proposal, which has the backing of the Democratic and Republican leadership of the Committee, would direct the FCC to regulate basic cable rates.

Under the draft proposal, cities could apply to the FCC for local jurisdiction over rate regulation. A city would have to certify to the FCC that it will follow the FCC's standards and procedures in regulating cable rates. If the franchising authority does not follow FCC requirements, it loses its authority.

While Congress and the FCC agree that the cable industry needs to be regulated in light of the lack of competition from other video technologies, escalating rates and poor customer service, opinion is divided over the best approach to dealing with an industry that has flourished under deregulation.

According to the Wall Street Journal, "neither the FCC nor Congress is eager to have local governments back in the rate-setting business, fearing that inconsistent and haphazard regulation could retard the industry."

The Journal further quotes an official at Telecommunications Inc., the nation's largest operator of cable systems that "it would be difficult, to say the least, to have a company involved in international trade go back to 5,000 municipalities for adjustments in rate structure."

According to Bob Thomson, government affairs vice-president at TCI, "National policy decisions can't be subject to the whims of local city councils and mayors."

The draft proposal would not solve many of the problems facing municipalities at the time of renewal. Cities are seeking a change from current law which leaves the burden of proof for demonstrating that a cable operator is living up to its franchise agreements with the municipality and makes denial of a franchise difficult.

The House Energy and Commerce Subcommittee on Telecommunications will likely take its cue on how to reregulate the cable television industry from the Senate. The Subcommittee began a series of hearings on cable television early in March and Chairman Edward Markey (D-MA) has announced his intention to push for legislation.

Municipal officials are strongly encouraged to take this opportunity to meet with your congressional delegation and let them know of the need for greater local authority to deal with cable. •

Page 14 / Illinois Municipal Review / April 1990