Press Release

Friday, October 8, 1999

Contact: Contact: David Butler
(202) 462-6262
Consumers Union Washington, DC Office

 STATEMENT BY CONSUMERS UNION
ON FCC DECISION TO RELAX CABLE TV OWNERSHIP RULES

WASHINGTON, D.C. -- Gene Kimmelman, co-director of Consumers Union in Washington, D.C., made the following statement today about the Federal Communications Commission's decision to relax its rules for cable television ownership, a decision that promises to have an impact on AT&T's bid to acquire MediaOne Group, Inc.:

"Congress set limits to prevent one cable company from dominating the market for cable TV programming. Now the FCC has decided that there's nothing wrong with AT&T owning more than 50 percent of the market if it can show that its cable company officials don't influence certain programming decisions.

"The truth is that control of the majority of cable wires into consumers' homes inherently includes massive influence over what programs and Internet services the consumer receives. An army of programming police can't prevent this influence.

"The FCC has essentially given AT&T a roadmap to find its way to acquiring MediaOne. Our fear is that a persistent monopoly in the cable industry like this will mean higher prices and fewer choices for cable, as well as higher prices and limited options for the Internet services provided by AT&T."

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Consumers Union, Publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumers. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers.

 


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