Pressure Increasing for More Regulation of Cable TV : Entertainment: Rising consumer complaints are moving many in Congress to look for ways to improve competition.

Growing viewer dissatisfaction over rates and service in the cable-television industry has convinced many members of Congress and the Federal Communications Commission that it needs more government regulation.

In 1984, Congress passed a bill that ended regulation of cable rates and left the power to grant franchise rights to local governments. Since then, rates have jumped by more than 100% in many areas, and the leading companies have gained an even greater market share by buying smaller cable concerns.

That has promoted the introduction of several bills in the House and Senate to limit cable franchise ownership and encourage greater competition.

“They (the authors of the bills) see a problem--shoddy service and excessive rates,” Senate Commerce Committee Chairman Ernest F. Hollings (D-S.C.) said at the opening of hearings on cable-TV problems.

“The huge multiple-system operators get bigger, more powerful and exercise even more anti-competitive muscle against their competitors,” added Sen. Albert Gore Jr. (D-Tenn.).

“We know we have a problem here. Some cable operators have taken advantage of their freedom to set rates,” responded National Cable Television Assn. President James Mooney.

But Mooney said that rates for basic service had increased only by an average of 26% over two years nationwide and that subscribers were getting more channels for their money.

“Basic service subscribers now receive an average of 32 channels for 50 cents a day. No other industry in America provides such a wide array of information and entertainment at such low cost,” he said.

“There seems to be plenty of room for shop-at-home networks and mud wrestling,” Sen. Wendell H. Ford (D-Ky.) said in a jab at cable programming.

Cable subscribers represent nearly 55% of all households with television sets. Cable industry revenue tops $14 billion a year.

FCC Chairman Alfred C. Sikes said concentration in the cable industry has increased markedly, with the top four companies controlling about 43% of all subscribers in 1989, contrasted with 28% in 1983. “The volume and intensity of complaints does indicate that there are problems that should be addressed,” he said.

“Today, local cable-television markets are not open to competition. We believe those restrictions should be changed,” Sikes said. He said he would support allowing each franchising authority to license two or more TV program service providers rather than the one currently allowed.

“The FCC also plans soon to complete action on its pending inquiry regarding possible telephone company provision of video transmission services,” Sikes added.

He said the FCC would complete an analysis of the industry by July for use by Congress in considering whether more legislation was needed.

A bill introduced by Sen. John C. Danforth (R-Mo.) and 14 others would limit the size of multiple system operators to 15% of cable subscribers. That appeared to be aimed at Tele-Communications Inc. of Denver, the nation’s largest cable operator with about 16% of subscribers.

“TCI, for one, is obviously hell-bent toward total domination as it buys up not only more and more cable systems but major programming services and even movie studios,” Gore said in a reference to that company’s possible purchase of a 50% interest in the Showtime channel.

“We really are not bad guys,” replied Tele-Communications President John Malone. He said more regulation of cable was not warranted.

The bills have the support of many powerful legislators, but it is not certain if any will pass next year. FCC support would improve the chances for some form of legislation to increase competition.

There is also concern in Congress that too many sports events are switching from free broadcast television to cable networks, raising the possibility that fans one day might have to pay to watch the World Series and Super Bowl.

“The lure of big bucks may well prompt sports leagues and teams to completely bypass free TV, writing off those people who can’t afford cable or can’t get it,” Sen. Howard M. Metzenbaum (D-Ohio) said at a Judiciary Committee hearing on sports television.