SR-501-001
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California
(cable84)
March 13, 1990
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Santa Monical califordif I - 001
TO:
Mayor and city Council
FROM:
City Staff
SUBJECT:
Recommendation to Support Revisions to the Cable
Communications Policy Act of 1984, Permitting
Increased Competition in the Cable Industry.
Introduction
This report provides Council with a recommendation to support
legislative changes to the Cable Communications Policy Act of
1984 regarding increasing competition in the cable television
industry by permitting telephone companies I entry subj ect to
appropriate regulatory safeguards and local controls.
Background
The 101st congress has begun reexamination of the Cable Act of
1984 in response to the apparent discontent of many Americans
about cable service, rate increases and the market power of the
cable television industry.
six bills are currently being considered by the Senate
Subcommittee on Communications of the Committee on Commerce and
Science and Transportation and numerous measures are pending
before the House. Although these measures are currently in flux,
the point of the legislation is to reopen decisions on how best
to achieve a balance between the needs of the public and of the
industry to provide the best possible cable service.
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A variety of issues are being examined in the legislative process
including mechanisms for fair and reasonable rate increases I
signal quality technical standards and methods to stimulate
competi tion in local franchise areas.
staff will be studying
these issues as the national debate unfolds.
Specifically, consideration at this time of telephone company
entry into the cable industry to provide competition through
realistic options for those dissatisfied with current cable
service is appropriate for staff to recommend.
The overriding
objective of cities is to provide consumers with the best
technology possible.
Within the context of local regulation I
telephone company entry subject to appropriate regulatory
safeguards and role definition can be endorsed.
Budgetary Impact
None
Recommendation
staff recommends City Council:
1)
Write letters to appropriate members of Congress and
area representatives endorsing greater competition in
the cable industry by permitting telephone companies'
entry to provide cable services subject to appropriate
regulatory safeguards and local control.
Prepared by: Kate Spellman, Senior Management Analyst
Laura Greenfieldl Cable TV Manager
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