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Cable Reform Essay

858 words - 4 pages

Cable Reform
The Cable industry has evolved dramatically since its inception in the early 20th century. Its roots starting out as a monopolistic competition has evolved into an ideal competition market. In the following text we analyze. The evolution of the cable industry, its market structure, how government impacts the industry, the public, and business. Today, much like any other industry, reform is advocated from many stakeholders whom feel that change is required. In Washington and across the country, cable television consumers are concerned with soaring cable bills and decreasing customer service. (Summers, 2007) Local franchising was appropriate in the earliest days of ...view middle of the document...

From the business perspective, The Act ignored new business models and pricing structures that were being developed by the wireless and satellite sectors. The impact to the cable industry was that those models and structures, if not reformed, would forever alter the way communications services are offered and priced in America. (Summer 2007)
Specifically, the Act provided some broadcast and cable industry deregulation but left in place many controls on ownership and operations of those sectors. The recommendation to the FCC on cable franchise reform is just one piece that can aid the industry in moving forward and serves the public’s best interest. (Summer, 2007)
The FCC described the early days of cable as community antenna television, it was developed in the late 1930’s early 1940’s to serve rural communities that were unable to receive TV signals due to terrain or line of sight communications was too great to receive a good reception. (FCC, 2012) The process was that local cable operators located antennas with good reception and then distributed them to customers for a fee. By the middle of the 20th century cable systems operated in only 70 communities in the United States with 14,000 homes. By the early, 21 century, more than 5300 cable systems serving upwards of 60 million subscribers in a sprawling 34,000 communities. (FCC 2012) These systems are global and technology has increased the channel capacity in the industry exponentially. The FCC calculates on average most cable subscribers now receive service in excess of 200 channels and the channel capacity makes cable providers adaptable to provide many services to include Internet, and telephone service.
The FCC established rules in 1965 for cable...

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