Toward Competition in Cable Television

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Bitter controversy has marked the brief history of cable television–particularly over monopoly power and the role of government in protecting consumers. Responding to large price increases to cable subscribers, Congress moved in 1992 to subject the industry to controls until it faces “effective” competition.

This book identifies the major sources of competition to the cable television industry, such as telephone companies, direct broadcast satellite services, and traditional broadcasting stations. Johnson, a consultant in telecommunications economics, focuses on the design of public policy flexible enough to accommodate whatever technological and marketing opportunities emerge in the future and strong enough to ensure the most efficient firms survive, rather than those whose success stems from anticompetitive activities. He includes recommendations for specific actions by Congress and the FCC.

Leland Johnson, recently retired from RAND Corporation, is a consultant in telecommunications economics.