OpinionMay 25, 1994

For a second time in less than a year, the federal government has attempted to lower cable television rates nationally. The rates charged by 90 percent of the nation's cable systems were supposed to drop an average of 7 percent this month. But because of other Federal Communication Commission (FCC) rule changes, some bills won't drop that much, and some rates will actually go up...

For a second time in less than a year, the federal government has attempted to lower cable television rates nationally.

The rates charged by 90 percent of the nation's cable systems were supposed to drop an average of 7 percent this month. But because of other Federal Communication Commission (FCC) rule changes, some bills won't drop that much, and some rates will actually go up.

This so-called cable rate bonanza has been more of a bust for many consumers.

The complexity of all these new rules and regulations has been part of the heart of the problem. Roger Harms, general manager for TCI, said they had to bring in accountants to figure it all out.

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The 1992 Federal Cable Act -- which first took effect last Sept. 1 -- is more than 400 pages in length. At the time, we noted that it would take some time to realize the full impact of this act, and questioned its value.

This newest attempt at price controls is also tied to some new rules. It forces subscribers in more affluent areas to pay more because the new rates take into account the median income of the area served. It also allows companies that own multiple cable systems to charge higher rates than smaller, independently owned systems.

In addition, a year long rate freeze will be lifted this month, allowing cable companies to raise rates to account for inflation and increases in business costs.

We're still not sure if the good intentions of Congress to control cable rates will translate into better service or simply more red tape. So far, we have to assume the latter.

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