Cable Firms Settle Major Antitrust Case : Television: Industry’s concession to make programming available to rivals follows a nearly five-year probe.

State and federal authorities have settled a massive antitrust dispute with the nation’s largest cable TV companies, winning concessions that could help break the cable industry’s hold over its 60 million subscribers.

According to sources close to the case, the settlement, to be announced today, ensures that satellite broadcasters, microwave-relay TV systems and others that have sought to compete against cable operators will be able to buy programming owned or controlled by those operators.

The settlement, which involves more than 40 states and seven major cable companies, follows a nearly five-year probe by seven states, including California, Maryland and New York. A separate though somewhat narrower agreement will be signed by the companies with the Justice Department, which conducted a parallel inquiry.

Cable rivals have complained for years that the industry refused to sell them cable programming, such as CNN or MTV, or made it so expensive that they couldn’t be competitive. Without being able to air these networks, the competing services say, they can’t attract customers.

In the settlement, the cable companies have agreed not to discriminate against a company offering a competing technology and to charge these competitors “reasonable terms” for their cable-owned programs. The cable firms also agreed to reimburse the states $5 million for their investigative costs.

Cable industry representatives downplayed the impact of the settlement, noting that it comes eight months after Congress passed legislation that contains language guaranteeing similar program availability to cable’s competitors.

However, state officials said the rules to put that legislation into effect are still under consideration by the Federal Communications Commission and also face a broad legal challenge from the cable industry.

By contrast, the settlement being announced today will go into effect immediately and will be binding in most of the nation, the officials said.

“What we are going to see is the cable monopoly start to crumble, and consumers will start to see a real choice,” a leading investigator said. “When your cable bill goes up $2 per month next year, you’re going to be able to call up a (microwave-relay company) and see the same programming for less.”

The seven major cable companies that have been the target of the state and federal investigations provide service to nearly half of the nation’s 57 million cable subscribers, virtually all of them operating in areas without a direct competitor. The companies include the three largest system owners: Tele-Communications, Time Warner and Continental Cablevision.

While generally pleased with the settlement, one microwave-relay TV operator said it was too long in coming. “The attorneys general have noodled this problem for four or five years,” he said. “Because of the realities of cable’s monopoly control, we have been kept from the market. . . . Well, better late than never.”