Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, October 16, 1993 TAG: 9310160117
SECTION: NATIONAL/INTERNATIONAL PAGE: A10 EDITION: METRO
SOURCE: The Washington Post
DATELINE: WASHINGTON LENGTH: Medium
If Bell Atlantic Corp., one of the most aggressive regional phone companies, and Tele-Communications Inc., the world's largest cable television company, merge they could control phone and cable services for one-third of the country.
With other deals anticipated, many lawmakers fear the cable TV and telephone industries will converge before Congress has a chance to set the ground rules.
The legislators would have to answer to their voters about any unfavorable fallout from the deal.
Still stinging from voter complaints over the latest round of cable rate increases, many members of Congress are casting a wary eye on the merger proposal.
"Members want to know the implications. There is extreme concern on the part of many members. There are profound implications that have to be considered," said Rep. Edward J. Markey, D-Mass., chairman of the House telecommunications subcommittee.
But while many of the lawmakers felt a sense of urgency, there was no consensus on how to respond to the industry's challenge.
The reactions being discussed ranged from blocking the Bell Atlantic deal to opening the doors wide to encourage similar mergers so that there will be competition for Bell Atlantic and its new partner.
Many lawmakers and their aides said it was too early to tell which approach had the most support.
But most said the merger, and a recent court case allowing Bell Atlantic to offer cable television service, meant Congress had to act quickly if it hoped to influence the shape of the industry.
Sen. Howard M. Metzenbaum, D-Ohio, the most outspoken opponent of the merger and the chairman of the Senate antitrust subcommittee, said he was considering legislation that would block the deal. He is planning hearings next week and his staff is evaluating a number of legislative proposals.
"We're eliminating competition," said Metzenbaum. "They're going to be in a position to drive out other companies in the market and that's bad for consumers."
Markey said his subcommittee is working with Rep. Rick Boucher, D-Va., to draw up a legislation that would allow phone companies to enter the cable TV business, but would also accelerate competition for the local phone companies.
It would mandate that states permit local phone competition. Many states do not.
It also would forbid telephone companies from using money from their telephone businesses to pay for their cable costs.
Boucher said the Bell Atlantic deal shows "the illogical nature of the current restrictions that prohibit telephone companies from offering cable within their service area."
by CNB