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Cable TV, NBC Hold Talks on Satellite Plan : Television: The principals are huddling over the congressional fate of the Sky Cable project.

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TIMES STAFF WRITER

The cable television industry and NBC are engaged in last-minute, behind-the-scenes maneuvering to affect congressional action on a bill that could help determine the success or failure of the $1.3-billion Sky Cable project.

Sky Cable is a joint venture among NBC, Rupert Murdoch’s News Corp., Hughes Communications Inc. and Cablevision Systems Corp. It seeks to launch a 108-channel, satellite-based direct broadcast system in the United States by 1993 and thus take a commanding position in the next generation of television.

NBC and News Corp. would contribute their programming expertise--News Corp. owns the Fox television network and 20th Century Fox movie studio--while Hughes would provide the satellite technology. Cablevision, one of the largest owners of local cable systems in the country, is also a partner with NBC in various cable TV networks. Viewers would receive the programs through small antennae about the size of a dinner plate.

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Two weeks ago, the Senate Commerce Committee approved a bill that would toughen regulation of the cable TV industry. Among the elements in the bill that the cable industry opposes is a provision barring cable program services, such as HBO and ESPN, from being sold only to local cable TV systems.

Such a provision is a victory for NBC, which lobbied heavily for the bill to require cable programmers to sell to competitors, including DBS systems such as Sky Cable. NBC believes that local cable systems are seeking to keep popular cable program services off Sky Cable and other potential satellite networks.

In the latest maneuvering, Tele-Communications Inc. Chief Executive John C. Malone sent a letter Monday to NBC President Robert C. Wright requesting that the network negotiate with TCI to allow it to carry NBC programming on some of TCI’s local cable systems where NBC currently does not have an affiliate.

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Malone said it was TCI’s goal to increase the amount of local news and sports programming in markets not served by NBC affiliates and sought to affiliate some of its rural cable systems with the network. The idea is highly unusual, and NBC is expected to turn down the request because it would strain relations with affiliates, who already suspect that the network is looking for alternatives to distribute its programming.

But if NBC declines to negotiate with TCI, then many in the industry expect TCI to use the issue in its lobbying efforts, pointing up the contradiction that NBC wants exclusive agreements with its affiliates but not between cable programmers and local system operators.

Local cable systems, the majority of which are owned or affiliated with large “multiple system operators” such as TCI or Time Warner’s American Telephone & Communications, are opposed to the measure because they fear that satellite systems could replace cable as the country’s leading purveyor of television programs. Federal Communications Commission Chairman Alfred Sikes indicated last week that he might favor non-exclusive deals for small competitors to cable, but not for the “Generals--General Electric or General Motors.” (GM owns Hughes Communications.)

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Both NBC President Robert C. Wright and News Corp. Chief Executive Rupert Murdoch have recently lobbied lawmakers in Washington about the new cable reregulation bill. Next week the bill moves to the House telecommunications subcommittee for approval.

Robert Thompson, vice president of government relations for TCI, said the company has long been looking for ways to finance “hometown TV” in cities and towns where there are no local network affiliates. He said TCI’s plan would use the revenues it generated from local advertising sales on the NBC channel to support a local news operation.

NBC was sent the letter, Thompson said, because it is the No. 1 ranked network, but he acknowledged that other issues were involved as well. “NBC has ratings which are 10 times in excess of the most popular cable network, but for timing purposes this is probably as good a time as any since they have indicated they are soft on the exclusivity issue.”

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