From: terryk@encore.com (Terence M. Kelleher)
Subject: Re: We need COMPETITION, not Re-regulation
Organization: Encore Computer Corporation
Distribution: usa
Date: Fri, 11 Sep 1992 15:49:27 GMT

In article <1992Sep11.002344.17362@draco.macsch.com> jfc@salmon.sea.macsch.com (Jack Castro) writes:

   Most everyone, including myself is not happy with the cable television
   industry.  With all the negative Cable TV sentiment, it is easy to
   want the worst for the Cable TV industry, and encourage regulation
   simply to get back
   at these companies. We should, however, examine this Cable TV regulation bill
   with open eyes, and not simply follow our angry hearts.

   I believe the root of the problem is the fact that only a single Cable TV
   company can transmit over any given cable. I have not heard clearly if this
   restraint is due to a lack of cable technology, or due to current laws. It 
   seems to be a combination of both.

I don't expect it is either illegal or technologially impossible for 2
companies to share a single cable system.  I expect it makes no
business sense.  Why lease out half the bandwidth on your cable to
another company, and therefore share the profit potential of the
system, when you can add more stations on the cable and get all the
profits yourself?

As far as the customer goes, all he would see is that he got 2 cable
bills instead of 1 if he wants the full range of available channels.

Others have compared multiple cable companies sharing the cable to
multiple long distance carriers sharing the phone lines.  It is not a
correct analogy.  We already have multiple channels, owned and
operated by competing firms, sharing the cable.  We have a single
local operator, as we do in the phone system, and no choice about it.I
can drop AT&T or MCI anytime I want to, but I have no choice about NY
Telephone.  


   I strongly believe the solution is to allow competition amongst the various
   Cable TV companies over the same cables or over fiber optic networks. This
   should improve service and product quality just as it has done in the long-
   distance telephone industry. 

When you can say that about the local phone companies, I think you are
on to something.

How can it improve the local service? What does a second company on
the same line get you?  You are still dependent on one primary local
carrier and your service will be good or bad based on that one
carriers.  

Does your choice of A&T vs. SPRINT matter if your local telephone
carrier can't provide proper signal strength and noise free lines?

   I do not believe the solution is to regulate the Cable TV industry. Regulation
   will cost all taxpayers money and increase the size of the current government
   bureaucracy. Furthermore, Cable TV companies will try as hard as they can to
   stick us with additional fees within the regulations in order to recoup lost 
   profits.  Also, if the Cable TV companies have to pay royalties to the networks
   for broadcasting privilages, it is only natural for the Cable TV industry to
   pass these added expenses onto the consumer. 

Did you read the bill?  There is no mention of royalties to networks.
Even if the local network affiliates choose to require fees, the cable
company is not forced to pay them.  They can opt to drop the station.
They have the option of picking up a differnt network affiliate to
keep the network coverage.

Of course, it varies greatly from area to area, but any station in my
region that placed itself in the position of loosing cable
distribution might just as well go off the air.

   Personally, I believe that the networks should pay the Cable TV companies
   to broadcast their signals. By doing so, the networks reach a tremendously
   larger audience for their advertisers. Hence, they can charge more for
   advertisiing spots. Also, I believe that the major networks (ABC, CBS, NBC)
   are the strongest supporters for the current Cable TV regulation bill.

And just for those reasons, the local companies would be stupid to opt
for the royalties and risk loosing valuable distribution.

   I have written my Congressman and Senator and asked him to vote against the
   Cable TV regulation bill. I encourage everyone else to do the same. We need
   competition, NOT additional regulations. We need to change the current laws
   if they do not allow competition. 

Read the Bill.  Read the Bill.  Read the Bill.

   -- 

   Jack Castro                  E-MAIL: j_castro@macsch.com
   (All opinions expressed are my own and not my employers.)
--

                                 +----------------+
Terence Kelleher              +--+-------------+  |
Encore Computer Corp.         |  | E N C O R E |  |
terryk@encore.com             |  +-------------+--+
607-687-2644                  +----------------+

Newsgroups: alt.cable-tv.re-regulate