Cable Industry

OFF TO ONE side of the massive, humming, "head-end" computer center in White Marsh where Comcast broadcasts its signal to 350,000 customers in the Baltimore suburbs, there's a small room lined with wall-to-wall monitors, set-top boxes and other gadgets that are the future of cable television. In one corner, you can flick a remote control and download the latest headlines from the Internet, check out the movie schedule at the cineplex down the road or browse the menus at local restaurants, all on a regular television set - no computer necessary.

WASHINGTON -- In the face of a lobbying blitzkrieg by the cable television industry, the head of the Federal Communications Commission said yesterday evening that he had scaled back his proposal to more tightly regulate the industry to salvage the effort. The chairman, Kevin J. Martin, and some consumer groups said the agreement could help to make programming more diverse and ultimately reduce cable costs. The compromise was a significant, though not total, victory for the cable industry, whose executives and lobbyists had worked to erode support on the commission for Martin's agenda.

WASHINGTON -- Having struck out twice in the last two years, Congress will begin a third effort later this month to pass legislation that would allow most cities to regulate prices for basic cable television services.Similar cable bills have foundered largely because of opposition from the cable industry's formidable lobbying group and from Republicans who oppose rate regulation. But this time, despite broad support among lawmakers who see the measure as an ideal consumer issue, it is in danger of being derailed by opposition from a new quarter: Hollywood movie studios and their renowned lobbyist, Jack Valenti.

LAS VEGAS -- The next generation of Internet cable modems will let users download a full set of encyclopedias in a few minutes, transfer 75 songs or thousands of photos in a few seconds, or download TV shows and movies in a fraction of the time it takes today. Brian L. Roberts, Comcast Corp.'s chairman and chief executive, predicted yesterday that the new devices will once again revolutionize the television and technology businesses. In the first public demonstration of "wideband" cable modems, Roberts' prototype hit data transfer rates of about 150 megabits per second.

A local news collaboration between WJZ-Channel 13 and the cable systems serving Baltimore and Baltimore County could be the first step toward additional cable/broadcast joint ventures, according to officials involved.The top-rated local news operation next week will begin producing "Eyewitness News Cable Capsules," five-minute spots of local news scheduled to be seen nine times daily on the CNN Headline News channel of United Artists Cable in the city (Channel 15) and Comcast Cablevision in the county (Channel 10)

In a move to put his own imprint on state telecommunications policy, Gov. Parris N. Glendening has removed Francis J. Knott as chairman of Maryland's Information Technology Board and has installed his closest aide as acting chairman of the panel.Major F. Riddick Jr., the governor's chief of staff, will head the commission for six months to a year while Mr. Glendening seeks a permanent chairman for the ITB, Dianna Rosborough, the governor's press secretary, said yesterday.In replacing Mr. Knott, the governor has removed a close ally of former Gov. William Donald Schaefer and a man who brought controversy to an obscure, nonpaying position in state government.

Dorothy Tucker-Houk gave a French lesson yesterday, and her students weren't the only ones who learned something.Gov. William Donald Schaefer and Chesapeake & Potomac Telephone Co. President Frederick D'Alessio basked in triomphe as the Towson High School teacher demonstrated their latest coup -- an "information highway" with the potential to connect all the state's high schools and colleges in a vast interactive television and computer network.Connected by that technology, students at Northwestern High and Polytechnic Institute in Baltimore, and Chesapeake and Towson high schools in Baltimore County, watched one another as they discussed the meaning of joie de vivre.

The Federal Communications Commission granted the much-bruised cable television industry a measure of relief yesterday as it voted to let companies collect up to $1.50 more a month over the next two years in return for adding six new channels.The decision is good news for consumers who are eager to have a greater choice of channels within their "expanded basic" service, the most popular package of broadcast and nonpremium cable channels.For consumers who have all the channels they want and aren't interested in new ones, it will mean higher bills for unwanted services.

WASHINGTON -- The Federal Communications Commission is preparing to impose significant new regulations to open the cable television market to independent programmers and rival video services after determining that cable companies have become too dominant in the industry, senior commission officials said. The finding, under a law that gives the commission expanded powers over the cable television industry if it becomes too big, is expected to be announced this month. It is a major departure for the agency and the industry, which was deregulated by an act of Congress in 1996.

The passage of a federal telecommunications bill mandating a v-chip in every new TV set presents the broadcast networks with a serious challenge to their public image.Television executives believe the measure violates their companies' free-speech rights and are considering challenging it in court. But they fear they could win the legal battle and lose the public-opinion war if they are seen as trying to stymie parents who want to protect their children from programs laden with sex and violence.