Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, July 22, 1993 TAG: 9307220119
SECTION: BUSINESS PAGE: B5 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The agency late Tuesday advanced from Oct. 1 to Sept. 1 the date of a scheduled fee reduction on what generally is called basic and basic-plus levels of service.
The cuts will vary among the nation's 11,000 cable TV systems and could average about 10 percent, the agency's Scott Roberts said. There are about 55 million cable television subscribers in the United States.
Cox Cable Roanoke subscribers who have basic service and one other outlet wired for cable service will see their monthly bills drop $6 from $27.50.
Gretchen Shine, vice president and general manager, says it's hard to say how many customers will be affected because of the many variations among services offered.
However, basic-plus customers with no additional outlets and no converters will see an increase of 65 cents a month. And those who are not paying for converters will pay about $1 to $2 more. Cox has not charged for converter boxes if customers subscribe to premium channels.
The $3 charge for remote controls will be reduced to about 40 cents, Shine said.
All changes will take effect Sept. 1 for Cox customers, she said.
Other area cable companies said Wednesday they were still calculating the rebates.
Gene Kimmelman of the Consumer Federation of America, a public interest group, said U.S. consumers will save $100 million because of the early reduction.
"It's better than nothing," Kimmelman said. But he was critical of the FCC for delaying the reduction date in the first place from June 21 to Oct. 1.
The consumer group on Wednesday asked the FCC to allow cable customers to withhold 15 percent of their monthly service charges until the reduced rates go into effect.
Some customers still would be liable for the money if the FCC later grants individual cable systems to retain higher rates on a showing of need.
"Unless the FCC acts immediately, consumers are going to lose up to $200 million between now and Sept. 1 from cable service overcharges," said Bradley Stillman, the consumer federation's legislative counsel.
"The FCC cancellation denied consumers $300 million in potential refunds," he said. "Today's action restores the opportunity to get refunds for one month."
The FCC decided in April that cable subscribers were being overcharged an average of 10 percent based on rates in effect on Sept. 30. It ordered reductions to go into effect June 21, then claimed it could not get ready in time and set the target date for Oct. 1.
Under pressure from Congress, that date was advanced on Tuesday to Sept. 1, a move the consumer federation said would save consumers $100 million. The FCC rates affect subscribers of basic service, which includes all three broadcast networks plus local government and public-access channels.
The rates will not immediately apply to so-called expanded basic service, but consumer complaints are expected to trigger FCC regulation of these services as well. Pay-per-view and premium channels are not covered by the law.
The commission has estimated the rate rollback could save customers as much as $1 billion a year.
Because of extensive paperwork and inevitable administrative hearings involved, Congress gave the FCC an extra $11.5 million to hire additional staff.
"There is no good reason for the FCC to deny consumers the immediate rate reductions the commission and Congress have decided are appropriate," Stillman said.
Staff writer Melanie Hatter contributed to this story.
by CNB