LAW SOUGHT TO CUT COSTS OF CABLE TV.Byline: Paul Hefner Daily News Sacramento Bureau Angry about rising cable television rates - but powerless to regulate them directly - a state lawmaker proposed on Tuesday restricting other fees and forcing cable companies to tout Tout To promote a security in order to attract buyers. tout To foster interest in a particular company or security. For example, a broker might tout a security to a client in the hope that the client will purchase the security. their cheapest service. Assemblyman as·sem·bly·man n. A man who is a member of a legislative assembly. assemblyman Noun pl -men a member of a legislative assembly Noun 1. Jack Scott, D-Pasadena, said that deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the cable television industry has hurt consumers, who have seen cable rates increase dramatically. A report by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. found that cable rates jumped 8.5 percent between July 1996 and July 1997, far outpacing the overall rate of inflation. ``While cable companies have been lining their pocketbooks, unforunately consumers have suffered,'' Scott said. ``Consumers are paying more for the same old service.'' Yet the state has no power to regulate cable rates and the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. will lose its authority to oversee cable prices in 1999. Instead, Scott said he was introducing legislation that would increase competition by shortening cable franshise agreements to five years. In addition, the bill would allow cities awarding cable contracts to collect a fee to subsidize sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. service to poor or elderly subscribers. The measure, AB 1893, would also require cable providers to identify their least expensive service and present it along with their more expensive cable packages. The bill also would require companies to obtain approval of the state Public Utilities Commission before charging fees separate from rates. Caught off-guard by Scott's proposal, cable industry lobbyists said they were still studying the measure. ``The safest thing to say at this point is the industry is deeply troubled and gravely concerned about this legislation,'' said Dennis Mangers, senior vice president of the California Cable Television Association. But a number of groups for consumers and senior citizens endorsed the measure, contending that controls are needed because cable television has become a modern media lifeline. ``This is how the world talks to each other,'' said Howard Owens of the Consumer Federation of California The Consumer Federation of California (CFC) was founded in 1960 as a non-profit consumer advocacy organization. CFC campaigns for state and federal laws and appears at the California State Legislature in support of consumer focused regulations. . ``If you're not hooked up, you really miss out on a lot of what the world has to offer.'' |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion