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8 <br /> U.S. Congress <br /> Telecommunications Reform <br /> In June, the U.S. Senate approved passage of the Pressler telecommunications bill, S.652, which <br /> would allow cable and telephone companies to compete with one another. The bill also promises <br /> to dismantle cable rate regulation for the upper tiers of cable service and remove regulations for <br /> small cable systems - among other measures. But local government regulation of basic <br /> cable rates and services is maintained. The House of Representatives' counterpart <br /> telecommunications bill, H.R. 1555, also proposes to deregulate upper tiers of cable service. <br /> However, it would keep intact basic cable rate and service regulation by local governments. If <br /> H.R. 1555 is passed by the House in July, it will go to a conference committee, where it will be <br /> combined with the Pressler Bill. Some changes in both bills are expected to take place in this <br /> committee before a final bill emerges and is sent onward to the White House for signature. But <br /> The President has threatened to veto any telecommunications bill that does not adequately protect <br /> cable subscribers. Currently, local regulation of basic rates and services by <br /> communities is not threatened by either the Pressler Bill or H.R. 1555. <br /> 5 <br />