In 1992, however, Congress passed a federal law, the Cable Television Consumer Protection and Competition Act, which reregulated the cable TV industry. In its simplest terms, cable television is the transmission of signals through underground, or aerial, wires. Cable television uses high antennas placed in lofty spots to pick up signals from broadcast stations and microwave relays. The signals are delivered to a cable system's headend site, and transmitted to a home through a wired network of cables attached to poles, or in underground channels. In order to establish a cable system, cable operators must first negotiate a franchise agreement with local governments.
Some areas have overbuilds, meaning more than one system serves a franchise area.
However, most communities are served by one operator. When the cable system is in place, subscriptions are available to the public. After a customer purchases a cable service, the cable operator drops a small cable from the cable feeder into the home and attaches it to the television set. Basic Service Cable television offers a wide variety of programming and services unavailable overtheair. The average cable subscriber currently receives 40 channels.