Final answer:
The statement that local cable TV companies with competition have lower monthly rates than those in noncompetitive markets is true. The FCC regulates the industry to encourage competition and prevent media monopolies, leading to more favorable consumer prices.
Step-by-step explanation:
An FCC study found that local cable TV companies that face competition have lower monthly rates than cable companies in noncompetitive markets. The indicated statement can be regarded as true since the presence of competition in a market typically pushes prices down as companies strive to attract consumers by offering more favorable rates. This competitive framework is fostered by regulatory actions of the FCC, which prioritize innovation and meaningful choice in affordable services for consumers.The Telecommunications Act of 1996 allowed increased ownership of media outlets by single entities but also has been criticized for potentially increasing cable prices and reducing focus on public interest obligations. The FCC now plays more of a monitoring role, though it continues to oversee market activities to prevent media monopolies and address consumer complaints.Overall, the FCC aims to regulate the industry in a way that prevents local monopolies from charging excessive fees. This regulatory environment has historically shifted from a more restrictive stance to one that encourages competition, consequently affecting pricing and service quality in the cable TV and broader communication sectors.