Advertisement
YOU ARE HERE: LAT HomeCollections

The Troubles in Cable Franchising Warrant Giving Customers an Out

May 09, 1993

Multiple franchising has posted a dismal record of failure.

The most common result is an eventual consolidation or merger of the two companies, thereby negating any competition benefits after tremendous, often redundant, capital expenditures at subscribers' expense.

Infrastructure requirements make market competition for cable TV as infeasible as it is for water or electricity systems.

Were a second franchise awarded, it seems unlikely that a potential cable operator would make the huge initial capital investment required in the hope that they could successfully compete with the already established company.

Communities should, on the other hand, promote the only feasible form of market competition and make the acquisition of satellite systems less restrictive.

DENNIS CAFFERTY

Costa Mesa

Advertisement
Los Angeles Times Articles
|
|
|