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Cable Television: Background and Overview of Rates and Other Issues for Congress (CRS Report for Congress)

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Release Date April 25, 2007
Report Number RL33384
Report Type Report
Authors Julie Jennings, Knowledge Services Group
Source Agency Congressional Research Service
Summary:

Cable television is one of the oldest and most popular distribution technologies used to deliver video programming to consumers. It uses fixed coaxial or fiber-optic cables to accomplish delivery. Of the various other methods used to deliver video, only direct broadcast satellite (DBS) successfully competes with cable. It uses communications satellites to deliver signals to individual consumers. In 2005, cable television was received by 65.4 million homes, or approximately 69% of all pay television subscribers. In comparison, DBS was received by 26.1 million homes, or approximately 27.7% of all television subscribers. This report presents information on the history of federal regulation of the cable television industry and background information on cable rates and other cable industry issues. The DBS industry, cable's main competitor, is not addressed extensively in this report. The Telecommunications Act of 1996, 110 Stat. 56, P.L. 104-104, eliminated most cable rate regulation beyond the basic tier of services as of March 31, 1999. Some small cable operators were freed from regulation upon the enactment of the law, but in most cases, rates for a basic tier of services continue to be regulated. The Telecommunications Act also opened up new areas of competition between telephone companies and cable companies. This report will be updated as legislation or news events warrant.