Cable TV Rates Jumped 6.9 Percent In 1998

A new report issued by the Federal Communications Commission shows that rates for U.S. cable TV rose 6.9 percent for most consumers last year, and the average monthly cable bill was $30.53.Rates for the small number of consumers in areas where cable operators face competitors rose 5.8 percent, and the average monthly bill was $28.71, or 6.3 percent less than in areas with cable monopolies.Cable companies still dominate 85 percent of the subscription TV marketplace. Only 246 service areas in the U.S. out of about 30,000 have ""effective competition,"" according to the FCC.Cable TV rates are a sensitive issue in Washington because rates for the most popular cable TV programming were deregulated on April 1, 1999. Congressional leaders have warned the industry to keep rates in check or face possible re-regulation.Cable companies attributed the rate increases primarily to increased programming costs, system upgrades and channel additions.The FCC obtained its data for the report directly from cable companies, and it covered July 1, 1997 to July 1, 1998.