FCC faces thorny questions about rate re-regulation. (Industry Overview)
Multichannel News, November, 1992 by Higgins, John M.
When Cable Alabama Inc. began to overbuild Comcast Corp.'s Huntsville, Ala. system in 1986, the company triggered a furious price war that finally drove basic rates down as low as $5 a month. But when Comcast could neither starve Cable Alabama out of the market nor acquire the system, both companies settled in for the long haul and prices edged up.
The result: competition in virtually the entire market with rates no lower than in neighboring monopoly systems. Which price best represents cable pricing in competitive markets? That's just one of the many sticky questions the Federal Communications Commission faces as it drafts rules regulating the price of basic cable. As with many parts of the 1992 Cable Act, Congress' instructions to the FCC to regulate...
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