Communications-related Headlines for 9/24/97

Cable Rates
NYT: FCC Is Urged to Keep Close Eye on Cable Rates
WP: Freeze Cable Rates, Consumer Groups Urge

Public Television
NYT: A Star Is Licensed

Spectrum
WSJ: FCC Likely to Offer Four Options To Fix Troubled Wireless Auction

Campaign Finance Reform
WSJ: Price Controls on Democracy

*********************************************
* Cable Rates *
*********************************************
Title: FCC Is Urged to Keep Close Eye on Cable Rates
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/cable-tv-rates.html
Author: Mark Landler
Issue: Cable
Description: The Consumer Federation of America and Consumers Union blamed
the Federal Communications Commission for failing to rein in climbing cable
rates. The two consumer groups want the FCC to freeze cable rates, readjust
its formula for determining reasonable rates, and to clamp down on mergers
between cable operators and cable programming services. The FCC responded by
saying the most effective regulator of cable rates is competition from
satellite television services. A senior FCC official also said that it is
difficult to impose rate caps since cable operators are constantly adding
new stations and they argue that they should be compensated for giving
viewers more choices. (Look, Ma. Another station with all re-runs!) Cable
operators contend that the rate increases reflect the growing fees of
programmers. For example, ESPN recently attempted to raise its annual
carriage fee by 23%. [Hear Gene Kimmelman, co-director of Consumers Union
http://www.nytimes.com/yr/mo/day/news/financial/cable-tv-rates.1.au] [Also
see Washington Post (C9) Freeze Cable Rates, Consumer Groups Urge by
Jeannine Aversa
http://www.washingtonpost.com/wp-srv/WPlate/1997-09/24/070l-092497-idx.h...

*********************************************
* Public Television *
*********************************************
Title: A Star Is Licensed
Source: New York Times (D1)
http://www.nytimes.com/yr/mo/day/news/financial/arthur-mania.html
Author: Constance Hays
Issue: Public Television
Description: "Everybody wants Arthur." Arthur is the star in a new PBS
series and Arthur merchandize has been planned from the beginning to help
support the costs of producing the show. Now hats, mugs, videos, and even
underwear are available. The 22 licensing agreements connected with Arthur
show how the line is blurring between the thinly veiled half hour
commercials that past as children's TV on commercial networks and the
programming on PBS.

*********************************************
* Spectrum *
*********************************************
Title: FCC Likely to Offer Four Options To Fix Troubled Wireless Auction
Source: Wall Street Journal
http://wsj.com/ (A2)
Author: Bryan Gruley
Issue: Spectrum
Description: The Federal Communications Commission will probably vote
tomorrow to offer four options to the troubled winners of Block C auction
licenses: 1) they could simply resume their lapsed installment payments; 2)
they could return half of their licenses for a reduction in debt (returned
licenses would be reauctioned); 3) they could return all licenses and be
freed from debt; or 4) they could go with the "full buyout" plan proposed by
Rep Billy Tauzin (R-LA) and Rep Ed Markey (D-MA): bidders would pay
immediately for as many licenses as they could afford, and return the others
for auction. Many details still need to be worked out, however.

*********************************************
* Campaign Finance Reform *
*********************************************
Title: Price Controls on Democracy
Source: Wall Street Journal
http://wsj.com/ (A22)
Author: Pete du Pont, editor of IntellectualCapitol.com
former Republican governor of Delaware
Issue: Campaign Finance Reform
Description: Editorial by du Pont starts by saying hard cases often make bad
law. The company scandals of '96 are pushing Congress towards a bad law: the
McCain-Feingold bill. du Pont dislikes the bill because it would impose
"price controls on political involvement." du Pont believes we need to
control information, not money: "A well-informed electorate will safeguard
American campaigns far better than any appointed group of the best and
brightest Washington regulators."
*********