FCC Rule on Off-System Local Channels : Cable-TV Subscribers May Pay Extra to See All Shows

Cable-television subscribers who want to receive all local television signals--not just those stations being carried on their cable systems--will have to pay for new equipment for their television sets as a result of a rule approved Thursday by the Federal Communications Commission.

The equipment--a special switch--is part of a new FCC policy that covers the broadcast of local television programs on cable systems nationwide. The plan replaces the commission’s previous 20-year-old policy, which was thrown out by a federal court in 1985, that had required cable systems to offer all local channels.

Under the new plan, based largely on a compromise worked out by cable industry representatives and local broadcasters, cable companies will have to offer a certain number of local stations on their systems for the next five years. The number will depend on the size of the cable systems.

To allow viewers to see local stations that are not on the systems, the cable operators would be required to offer a special “AB switch” for installation on subscribers’ sets.

However, in a change from an earlier proposal, the subscribers, rather than the cable companies, would have to pay for the equipment, which is expected to cost at least $4 for each switch.

Commission members, who approved the new rule unanimously, called the policy a reasonable middle ground for all parties.

“We have fashioned a policy that makes sure that the American people will be able to choose among the maximum number of channels of video,” said Commission Chairman Mark S. Fowler.

However, the rule, which will take effect 30 days after it is published in the Federal Register, is certain to be challenged on Capitol Hill and by public broadcasters and independent stations that fear their signals will be dropped by cable systems.

“We don’t have any ability to make everybody happy,” said Fowler, “but we do achieve a good balance.”

The commission shifted the cost burden for the switches to the viewers after the cable industry argued that it would cost cable operators $1.4 billion and that many subscribers would neither want nor use the switches.

James P. Mooney, president of the National Cable Television Assn., said that the new rule is “considerably less onerous” than the earlier one. “We’re willing to try and live with the FCC’s decision,” he said.

Edward O. Fritts, head of the National Assn. of Broadcasters, called the rule a “good start,” except for the provision that would remove any requirement for carrying local broadcasts after 1991.

“The provision was not part of the compromise and is something we vow will never happen,” he said.

Under the new rule, cable systems with fewer than 20 channels will not be required to carry any local stations.

Systems with 21 to 27 channels will be required to devote up to seven channels to local stations, while cable systems with more than 27 channels must set aside one-fourth of their capacity for local stations. All cable systems will have to carry at least one local public TV station.

Officials of the Corporation for Public Broadcasting expressed disappointment that the commission did not require cable systems to carry all public television stations.

“Cable systems may still deny television viewers the full range of educational and informative offerings on public television as a result of this decision,” CPB said in a statement.

FCC officials said that after 1991, cable subscribers may have to use an antenna along with the AB switch to get local broadcasts that are not on their cable systems.