Cable companies deal with self-regulation

By BETH LUCAS
Collegian Staff Writer

Area cable providers can now self-regulate the cost and distribution of their priciest channels.

The Telecommunications Act of 1996 established by Congress and the Federal Communications Commission ended regulation of non-basic cable channels such as CNN, MTV and ESPN, beginning March 31.

"Customers can still file complaints (to the FCC) about basic service rates, but there will be no more rate regulation on the upper tier of cable," said Morgan Broman, FCC spokesperson.

"Consumers should be aware that there is no way to complain about non-basic cable now."

The act was created to fuel competition among cable companies, which was estimated to be much greater than in 1996, he said.

"But it did not get as competitive as expected," Broman said.

State College has several cable providers, with TCI as the largest.

"I think this is going to be a good thing, especially for customers," said Jeff Matter, TCI of Pennsylvania marketing manager.

"It gives everyone enough competition to keep rates low."

Although TCI sees the freedom as positive, the company does not expect to change its practices, he said.

The company holds an annual meeting concerning rates, which are typically affected by programming costs and inflation, he said.

"We're just all going to sit back and see what happens," he said. "But you have to offer the price the customer is looking for."

The FCC is also going to wait to see if the act affects prices and services currently offered, Broman said.

According to a press release, the FCC has been receiving complaints concerning non-basic cable right up until last Wednesday when regulation ended.

Since 1993, the FCC's Cable Services Bureau resolved more than 18,000 complaints from more than 5,700 communities, according to the release.

Nearly $100 million in consumer refunds resulted.

The best thing for consumers is to be aware of what is happening and voice any concerns they have, Broman said.

There is always the possibility Congress could write a new regulation if costs increase, he said.

"If congressmen and senators start getting lots of mail, e-mails and phone calls complaining, they will probably act," he said.

Kevin Vile (senior-industrial engineering) lives in an apartment complex that provides cable, but said he feels competition would be very helpful for his home outside Philadelphia.

"In my area, there are five different carriers and some offer better rates," he said.

"In some areas, if you cross the street, the rates are much cheaper."