Consumers for Cable Choice say that current FCC regulation pertaining to the cable television industry contains "five fatal flaws," and it wants them corrected. Its president, Robert K. Johnson, said, "Current cable regulations are so seriously outdated and flawed that they handcuff consumers and keep them from relevant, beneficial video applications for their homes and businesses. The benefits of broadband go far beyond our current understanding of cable television. True broadband deployment will revolutionize the delivery of social services, education and medical consultations," Johnson said. "All that's needed to encourage this technology is an open market that will allow the American entrepreneurial spirit to take charge." The group basically charges that cable, without significant competition, offers the combination of rising cost - - 86% over the past ten years - - with relatively stagnant service, while regulatory hurdles stifle effective competition which, if allowed into the game, could well be able to provide increased access for minority and niche groups and increased innovation.

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The FCC's five fatal flaws:

1. Rising rates and stagnant quality. In the past decade, cable rates have risen 86 percent -- far greater than the rate of inflation. At the same time, consumer satisfaction indexes indicate that many consumers remain dissatisfied with cable service, and innovation has been largely nonexistent.

2. Barriers to competitors' entry. Because cable franchises arose under a regulatory paradigm where cable's monopoly status was assumed, potential competitors are unable to provide an effective and timely antidote to the cable industry's spiraling rate hikes and historically inferior service quality. Technology exists today that could provide consumers with superior choices, but it is not reaching the market. To offer service nationally, competitors must obtain franchises in approximately 33,000 localities through a costly, time-consuming process.

3. Disproportionate impact on small business. Many small businesses cannot obtain cable service because their sites in office buildings, business parks and strip malls are not wired for cable. Others must pay substantial installation charges to receive the same level of service as residential customers. The result is a dichotomy where small businesses have multiple voice and data options, but few or none in video options. The impact has a significant ripple effect on America's economic productivity. The U.S. has fallen to 16th in the world in broadband penetration rates. Because they cannot access interactive video technology, small U.S. businesses cannot fairly compete with counterparts in Asia and Europe who are currently using technologically advanced networks to reach customers and suppliers.

4. Limited programming access for special interest and minority consumers. Cable's spectrum limitations keep valuable programming from special interest and minority markets. Only those willing to pay a substantial premium can access additional channels and services of interest, if they are available at all. Broadband-based networks offer the promise of substantially more programming options for these important markets. For instance, consider the nation's fastest growing demographic segment -- the Latino market. Many cable providers make available only one or two Spanish- speaking networks, and often no English-speaking Latino networks. Consumers have no real option for other service. With broadband technology, the traditional cable line-up could expand ten-fold. Moreover, this increased programming space will open the door for more creativity and innovation as new channels and applications emerge. The same dynamic is in play for other minority groups and special interest groups.

5. Technological paralysis. The stagnant cable marketplace tolerates mediocrity and stifles innovative advancement. As other countries make significant advances in bringing interactive video applications to residences and small businesses, U.S. ingenuity sits idle. This is not simply a matter of more channel options for passive viewing, although that has merit in our diverse culture.