F.C.C. is urged to keep close eye on cable rates

Article Abstract:

The FCC is drawing criticism from two consumer groups, which say the agency has failed to respond to recently rising cable rates. The Consumer Federation of America and Consumers Union accuse the FCC of allowing cable fee increases to triple the inflation rate since the Feb 1996 passage of the Telecommunications Act of 1996. Cable rates have jumped 5.6% a year during that span, according to the Bureau of Labor Statistics. By comparison, cable rates rose by 4.3% during the cable industry's complete deregulation between 1986 and 1993. Both groups filed a petition with the FCC, asking the agency to freeze cable rates and recalculate its method of determining reasonable rates. The FCC, which since 1994 has permitted cable companies to raise rates if they add new channels, said imposing a cap is difficult. The FCC since 1996 has allowed cable companies to boost rates for increasingly costly maintenance of their existing channels.

Cable Television Systems, Cable Networks, Cable and other pay TV services, Prices and rates, Telecommunications regulations, Cable television broadcasting industry, Cable television, Government communications regulation, Cable television/data services, Government Regulation

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Telephone deal opens the East to competition; pact with regulators eases merger of Bells

Article Abstract:

The FCC announced that Nynex and Bell Atlantic have agreed to open their local telephone service in the Eastern Seaboard to competition. The agreement clears the way for FCC's approval of the $23.7 billion merger between the two companies. The merger was announced in 1996, but was held up because of concerns that the joint company will stifle the competition for local phone service in a large section of the East Coast. The agreement between FCC and the companies will enable telecommunication operators including AT&T and MCI to compete for the 26 million Nynex- Bell Atlantic customers. Under the agreement both Nynex and Bell Atlantic will lease their wires at wholesale prices to competing companies, to enable them to compete in the local phone service business. The companies will be allowed to use software systems to switch local phone service seamlessly from Nynex and Bell Atlantic to their systems.

Telegraph & other communications, Specialized Telecom Services, Wired Telecommunications Carriers, Mergers, acquisitions and divestments, Services, Telecommunications services industry, Telecommunications industry, Company acquisition/merger, Bell Atlantic Corp., BEL, Local telephone services, Company services, Local telephone service, NYNEX Corp., NYN

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