Senate OKs Bill to Re-Regulate Cable TV : Entertainment: The move sets up a confrontation with President Bush, who is vowing to veto the measure that reimposes controls on rates charged for basic service.

The Senate on Tuesday voted overwhelmingly for a bill to reimpose federal controls on rates charged for basic cable television service, setting the stage for a veto battle with President Bush.

The bill was approved 74 to 25, a margin of seven votes more than needed to override a veto.

But the cable industry, which Congress freed of regulation in 1984, isn’t ready to surrender.

“This is obviously a tough fight, and it isn’t over,” said James P. Mooney, president and chief executive of the National Cable Television Assn. “We will continue to work with the White House to gather enough support to sustain a veto.

“We appreciate the support of the 25 senators who voted against this bill, which we continue to believe is anti-consumer and will make cable subscriber rates go up and not down.”

The House approved the bill 280 to 128 last week, a cushion also apparently large enough to sustain a veto. If all 433 members of the House voted, however, it would take 289 votes to override.

Bush has 10 days to act on the bill, and the first override vote will take place in the Senate, where the measure originated. In a letter to Congress last week, the President said the cable bill would “cost the economy jobs, reduce consumer programming choices and retard the development of growth-oriented investments critical to . . . communications.”

Bush has vetoed 31 bills to date, and all have been sustained, despite Democratic majorities in both houses. Supporters of the cable bill, pleased with their victory, maintained that a veto could damage the President’s reelection drive by putting him on the unpopular side of a consumer issue.

“If President Bush tries to block this bill, cable rates will continue their upward spiral, three times (the rate of) inflation, service will remain awful and competition will be stymied,” said Gene Kimmelman, legislative director of the Consumer Federation of America, which has been leading the fight for the bill in alliance with the National Assn. of Broadcasters.

Broadcasters want the bill because it would enable them to charge cable companies for the rights to carry local and network programming. This provision was not contained in the original, separate versions of the bill approved earlier this year, but was added in a conference between the House and the Senate.

Hollywood is angry because the broadcasters would get new revenue for the programs without any new payments going to the movie studios and other firms producing the shows. The movie industry joined the cable industry in vociferous opposition to the bill.

Both California senators, Democrat Alan Cranston and Republican John Seymour, voted against the bill.

“I’d say that Hollywood has overplayed its hand,” Kimmelman said. “They certainly burned bridges with the consumer community. We’ve been allied with them on other issues because they were usually pro-consumer. But there is a major breach in what has been a consistent alliance, and we will not forget it.”

Leading the Senate fight against the bill, minority leader Bob Dole (R-Kan.) said during the debate Monday that “there’s no question . . . consumers are justifiably angry” but warned that the measure would “entrench and perpetuate the existing cable monopolies.” There was no formal debate Tuesday before the Senate voted.

The bill would reimpose government oversight of the industry, which was deregulated eight years ago. Since then, rates have soared and service complaints mounted, prompting widespread calls for re-regulation.

If the bill becomes law, the Federal Communication Commission would devise a formula setting a ceiling on “reasonable” charges for basic cable service--the regular broadcast channels operated by affiliates of ABC, CBS, NBC, the Fox network, as well as local independent stations, public television stations and channels operated by local governments and school boards.

This basic service now costs an average of $20 a month. After the FCC decides on its formula, local authorities could force cable firms to reduce their rates if they exceed the ceiling.

The second tier of cable service, which may include such offerings as channels featuring country music, home shopping, sports, movies, comedy, programs for children, religious programs and news, would not be immediately regulated.

However, the FCC could intervene and limit rate increases if consumers complained that cable companies were raising rates rapidly to compensate for any roll-backs in the charge for basic service.

Premium channels, such as Disney, Showtime and HBO, and pay-per-view events, such as wrestling championships, boxing matches, and rock music concerts, would remain untouched by the legislation.