FCC mulls cable TV compromise: get more data

By Peter Kaplan

WASHINGTON (Reuters) - Members of the Federal Communications Commission were weighing a possible compromise on Tuesday after balking at a proposal by the agency's chairman that would open the door to tougher regulation of cable television operators.

The compromise would seek more data from cable TV operators to help settle the question about whether U.S. cable subscriber numbers have surpassed a key threshold, giving the agency greater authority over the industry, FCC Chairman Kevin Martin told reporters.

Martin was forced to delay a 9:30 a.m. EST public meeting at which the commissioners were scheduled to vote on the issue. The meeting was postponed to give the five commissioners more time to reach agreement.

Martin, a Republican, had earlier proposed the agency issue a finding that U.S. cable subscribership figures exceeded 70 percent in areas where the service is available.

Under U.S. law, that finding would give the agency more authority over companies such as Comcast Corp (CMCSA.O) and Time Warner Cable Inc (TWC.N).

But the idea ran into resistance from Martin's two fellow Republicans on the commission. They questioned the way Martin had arrived at the 70 percent figure, saying it conflicted with previous reports on the issue. The FCC's two Democratic commissioners also had reservations.

Beyond doubts over the data, many Republicans, including lawmakers who have written to the FCC, have fundamental objections to imposing new federal regulations on an industry they say is competitive.

The two Democrats on the FCC, meanwhile, had come under pressure from consumer groups, who support Martin's 70 percent finding and say previous estimates undercounted the number of cable subscribers.

The proposed compromise to collect more data from the cable operators "would be a reasonable step for the commission to take," Martin said.

Martin has criticized the cable TV industry over steeply increasing rates, over programming that some viewers find offensive and its reluctance to let customers choose individual channels on an a la carte basis.

In his comments to reporters on Tuesday, Martin said he had not given up on the data he originally cited in the report, gleaned from a communications industry trade publisher, that put U.S. cable subscribership at 71.4 percent.

However, the idea that the industry had surpassed 70 percent subscribership surprised some commissioners because the number conflicted with previous FCC reports on video competition, which estimated cable subscribership around 60 percent.

The cable industry's main trade group, the National Cable & Telecommunications Association, has disputed the 71.4 percent figure, saying Martin's proposal is designed to pressure the industry into adopting the a la carte programming he favors.

(Reporting by Peter Kaplan; Editing by Tim Dobbyn)