Cable Competition Act

Cable Competition Act - Amends the Communications Act of 1934 to authorize a State or cable television franchising authority to regulate the rates that a cable operator may charge for the provision of lifeline television services for any franchising area which is not provided with cable service by two or more cable operators. Defines "lifeline television service" as the provision of: (1) channels of the three major networks; (2) a public television channel; and (3) one channel carrying each independent local television station.

Repeals a provision of such Act which prohibits a telephone company from providing video programming in its telephone service area. Allows a telephone company to: (1) provide video programming directly to subscribers; or (2) provide rental arrangements to any entity which is owned or controlled by, or under common control with, such telephone company for the provision of such video programming. Directs the Federal Communications Commission (FCC) to prescribe regulations to ensure that: (1) the economic risks of video programming business of a telephone company are not borne by telephone service ratepayers in any way; and (2) a common carrier providing video services allocates costs in a manner which protects basic telephone ratepayers from subsidizing the provision of cable video programming. Prohibits a telephone company from providing video programming services if prohibited from doing so by Federal antitrust laws.

Requires a cable operator to: (1) provide cable system access to any program service, except under specified conditions; (2) provide cable system access to any unaffiliated program service under the same rates, terms, and conditions as provided to an affiliated program; and (3) comply with regulations prescribed by the FCC which ensure such access. States that any regulations prescribed by the FCC shall not relieve a common carrier who provides cable service from any regulations under the Communications Act or any other regulations concerning open network architecture plans and related requirements.

Makes it unlawful for any person affiliated with a cable operator who provides programming to any cable operator to engage in any unjust or unreasonable discrimination in charges, practices, regulations, facilities, or services against any person seeking to obtain such programming for distribution over another cable system or over any other medium capable of making the programming available for private viewing. Directs the FCC to initiate a proceeding to investigate: (1) the extent to which affiliated persons are engaged in producing and distributing video programming for carriage on cable television systems; (2) the degree to which such operations result in higher rates for television service or unfair or anticompetitive acts or practices with respect to such programming; and (3) the extent to which multiple-system operators of cable franchises have engaged in acquisitions of cable systems at excessive prices, where rate increases have failed to produce increased benefits, or where accelerated turnover of franchises has created an upward spiral of basic rate increases as franchises are sold. Directs the FCC to report to the Congress on the results of such investigation within one year after enactment of this Act.

Directs the FCC to initiate a proceeding to investigate: (1) the extent to which video programming is being delivered to residents of rural areas by means of cable television systems and other media; and (2) methods which might be used to improve and extend the delivery of such programming by such media. Directs the FCC to report the results of such investigation to the Congress within one year after enactment of this Act.