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Steve Mehs
01-06-03, 03:50 AM
Satellite TV continues to make impressive gains in the multichannel industry, but cable remains the big monopoly power in the business, said Andy Wright, president of the Satellite Broadcasting and Communications Association.

While the Federal Communications Commission’s annual report on pay-TV competition suggests that cable is still the dominant provider in the market, "impressive numbers of consumers continue to switch to the superior quality, choice and customer service provided by direct broadcast satellite providers,” Wright said.

The commission report released last week said the number of DBS subscribers has grown significantly, showing a 12.5 percent increase and jumping to 18.2 million as of June 2002. That's up from 16 million the year before. The delivery of local TV channels by satellite TV has helped that growth, the report said.

However, "The commission’s report demonstrates that despite these impressive gains, cable, with over 68 million subscribers, retains monopoly power in the MVPD market," Wright said.

Cable's power is demonstrated by the significant rate increases operators continue to impose on consumers, Wright said.

"Consumers, now more than ever, need Congress and the FCC to continue to promote policies that will help the satellite consumer services industry to reach its full potential as a competitor to the dominant and entrenched cable companies," he said. "SBCA and its member companies will continue to fight for policies that promote robust competition between DBS and cable."

From SkyReport (http://www.skyreport.com/skyreport/jan2003/010603.shtm) (Used with Permission)