Cable Communications Act of 1984

The Cable Communications Act of 1984 (Public Law 98-549) was an act of Congress passed on October 30, 1984 to promote competition and deregulate the cable industry. The act established a national policy for the regulation of cable communications by federal, state, and local authorities. Conservative Senator Barry Goldwater of Arizona wrote and supported the act, which amended the Communications Act of 1934 with the insertion of "Title VI- General Provisions." After more than three years of debate, six provisions were enacted to represent the intricate compromise between cable operators and municipalities.

The scholarly article, "Perceived Impact of the Cable Policy Act of 1984," published in the Journal of Broadcasting & Electronic Media in 1987, described its objective as follows:

"The new law attempted to strike a delicate balance between the FCC, local governments, and marketplace competition, where in the past, each of these entities had vied for dominance. The Cable Act was to be the solution to the ongoing problem of who, or what, should exercise the most power over local cable operations."

In order to balance power between cable operators and the government, the act established regulations regarding franchise standards and proceeds that would attempt to strengthen the development of cable systems. The act gave municipalities, governing bodies of cities and towns, principal authority to grant and renew franchise licenses for cable operations. By establishing an orderly process for franchise renewal, the act protected cable operators from unfair denials of renewal. However in order to be granted a franchise renewal, the act specified that cable operators' past performances and future proposals had to meet the federal standards in the new title. The act was meant to reduce an unnecessary regulation that could have potentially brought about an excessive economic burden on cable systems.

In return for establishing franchise standards and procedures, the act specified that cable operators were expected to be receptive to their local communities’ needs and interests. Congress recognized the vital role of cable television in encouraging and providing a place for free expression. This provision assured that cable communications provide the general public with “the widest possible diversity of information sources and services.” Through this statute, Congress attempted to uphold the First Amendment interest of cable audiences to receive diversified information as specified in the Red Lion Broadcasting Co. v. Federal Communications Commission court case of 1969.

This provision declared that state and local authorities should allow, but not mandate, that this type of information be distributed via non-commercial Public, educational, and government access (PEG) cable TV channels. Furthermore, it prohibited cable operators from exerting any type of editorial control over program content broadcast through PEG channels and freed them from any potential liability for the content. The act lifted programming rules and subscription fees. It was this provision that inspired Senator Barry Goldwater to begin his work on the Cable Communications Act of 1984.

The result of the act was an intricate, minimally influential agreement between cable operators and municipalities. It has been highly debated for its effectiveness, because evidence shows that unaffiliated television programming on leased access channels was avoided and rarely appeared. As a title of the larger Communications Act of 1934, the Cable Communications Act of 1984 has been amended and revised with the Cable Act of 1992, also referred to as Cable Television Protection and Competition Act, and the Telecommunications Act of 1996.