Interactive Cable: Federal Policy and Programs

Urban development of cable, generally regarded as a prospective testbed of interactive cable services, has not started on the optimistic path many predicted when the current FCC cable regulations took effect in 1972. Cable growth, and industry emphasis, have been markedly within franchises rather than in new franchises recently. Economic rather than regulatory forces may have been largely responsible for this effect. This paper describes the factors in Federal regulatory policy that impinge on interactive cable systems and new service developments, including pay television, the first significant new service to emerge. Recommendations of the Cabinet Committee on Cable that are potentially significant for the development of new cable services, enhancement of rural broad-band services, and development of modern interactive systems are discussed. A few current programs compatible with the Committee's recommendations for Federal support in cable public service development are also indicated.