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The state's cable television lobby is gearing up to fight two proposals to regulate that fledgling industry.
Beacon Hill lawmakers this session will consider three measures designed to protect consumers who subscribe to cable and municipalities which license cable companies.
And aide to Sen. George Bachrach (D. Watertown), a co-sponsor of the bill, called the legislation groundbreaking because so little regulation of the industry exists.
The groundswell of regulatory legislation--before any of it has gotten through committee--has already begun to draw fire from the state's coalition of cable television companies, who criticize all the bills as an infringement on free competition.
Tooth and Sail Battle Ahead
"This will be a tooth and nail fight, and we will spend a lot of time" trying to prevent the regulations from becoming law, says Thomas K. Steel, vice-president and general counsel of the New England Cable Television Association. "The regulations are totally overzealous, surrealistic even." Steel adds.
Cable operators assert the cost to the consumer would be excessive if the regulations become state law.
But sponsors of the bills agree that they would only reinstate consumer and city protection waylayed at the federal level last year's federal legislation and rulings by the Federal Communications Commission (ICC) put a cap on a municipality's take of cable revenue a five percent.
"It is a matter of cutting your losses," says Peter Pratt, an official in the Somerville cable office.
Joseph Sakey, Cambridge's cable commissioner, agrees, saying that one of the bills would be good for the city. "It would leave it up to the community to decide" the percent of rate they receive, "but it would be better than the 50 cents per subscriber some communities are now receiving." Sakey explains.
Balance of Power?
Those favoring greater monitoring of the cable industry fear that as cable companies become entrenched in municipalities they may not be as responsive to city wishes when renegotiating contracts The proposed legislation "protects a community's negotiating power," said Bachrach's aide
"To revoke or not to renew licenses, the burden of proof of bad service now lies with the city," according to Peter Pratt, who works for the cable regulators lobby. There is a risk that cities will get stuck with bad, unresponsive cable operators, he said.
The consumer protection bill "would answer the problem in Boston," where consumers have complained of very poor service. Sakey said Cambridge and other cities are wary of falling into the same trap.
"Right now there is a lot of Cable illiteracy, this measure would protect the citizen," adds Sakey "Because the industry has grown very rapidly and there is a very high rate of return basic consumer rights have been ignored, said Pratt.
Over-Regulation?
The legislation would require minimum standards for customer service access and give consumers the right to get refunds for lost service.
Cable operators respond that the regulations are too exact "You would be lucky to get such regulations of the telephone company," Steel said.
"Cable, while it's a monopoly, is not a monopoly on services," Steel said, citing competition between various specialized entertainment channels, with movie theaters and with VCR systems as well as the newest competitor, sattelite dishes.
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