Cable networks have faced criticism for raising prices at a steady clip since regulations were relaxed in 1996. Consumer advocates charge that the networks have taken advantage of their local monopolies to gouge consumers and argue that they should face limits on how high they can raise rates.

But those increases can be traced to higher programming costs, cable television officials will tell the Senate Commerce Committee, pointing to a 20 percent increase in the rate Walt Disney Co.'s sports channel ESPN is expected to charge this summer.

Because some sports channels are contractually required to be included in all cable price packages, their price increases have a broad impact, said James Robbins, president and CEO of Cox Communications Inc. .

"The whole sports food chain is out of balance," Robbins told Reuters in an interview ahead of his testimony tomorrow.

Television networks are also forcing cable operators to pick up new channels, Robbins said in prepared testimony, taking advantage of laws that require carriers to carry local affiliates.

As the Federal Communications Commission (news - web sites) considers whether to relax ownership caps that limit the reach of media companies, cable executives say those caps should stay in place to prevent media giants like News Corp. Ltd. from throwing their weight around.

Cable operators enjoy a dominant position in the media marketplace, accounting for roughly two-thirds of all pay-TV and broadband Internet subscribers.

FCC (news - web sites) figures show cable rates jumped 6.3 percent over the 12 months ended June 30, 2002, while inflation increased at a rate of 1.1 percent.

Rates are likely to continue to increase as long as cable companies face little competition from rivals, said Gene Kimmelman of the Consumers Union, pointing out that while programming costs have risen over the past five years the industry's operating margins rose $7 billion during the same period.

"Despite the growth of satellite TV, the promise of meaningful competition to cable TV monopolies remains unfulfilled," Kimmelman said in prepared testimony.

Robbins said Cox has been able to improve its operating margins because more TV customers were signing up for broadband and telephone service as well.

Commerce Committee Chairman John McCain is expected to ask cable operators if they could give consumers the option of signing up for individual channels, rather than a few packages that limit their choices, according to one aide.

An official from a Congressional research agency is expected to deliver some findings on cable rates ahead of a more comprehensive report due in the fall.

Also scheduled to testify are Charles Dolan, chairman of Cablevision Systems Corp., James Gleason, president of CableDirect; and Leo Hindery, chairman and CEO of the YES Network.

Reuters/VNU