308
Syllabus
its rightful independence and its ability to function. The restraints have added force where a legislature must engage in a process of line drawing, as Congress did here in choosing which facilities to franchise. This necessity renders the precise coordinates of the resulting legislative judgment virtually unreviewable, since the legislature must be allowed leeway to approach a perceived problem incrementally. Pp. 313-316. (b) There are at least two possible bases for the common-ownership distinction; either one suffices. First, Congress borrowed § 602(7)(B) from the FCC's pre-Act regulations, and, thus, it is plausible that Congress also adopted the FCC's rationale, which was that common ownership was indicative of systems for which the costs of regulation would outweigh the benefits to consumers. A legislator might rationally assume that such systems would typically be limited in size or would share some other attribute affecting their impact on cable viewers' welfare such that regulators could safely ignore them. Subscribers who can negotiate with one voice through a common owner or manager may have greater bargaining power relative to the cable operator and therefore less need for regulatory protection. A second conceivable basis for the statutory distinction is concern over the potential for effective monopoly power. The first SMATV operator to gain a foothold by installing a dish on one building in a block of separately owned buildings would have a significant cost advantage in competing for the remaining subscribers, because it could connect additional buildings for the cost of a length of cable while its competitors would have to recover the cost of their own satellite facilities. Thus, the first operator could charge rates well above its cost and still undercut the competition. These rationales provide plausible bases for the common-ownership distinction that do not depend upon the use of public rights-of-way. Pp. 317-320. 296 U. S. App. D. C. 141, 965 F. 2d 1103, reversed and remanded.
Thomas, J., delivered the opinion of the Court, in which Rehnquist, C. J., and White, Blackmun, O'Connor, Scalia, Kennedy, and Souter, JJ., joined. Stevens, J., filed an opinion concurring in the judgment, post, p. 320.
John F. Manning argued the cause for petitioners. With him on the briefs were Solicitor General Starr, Acting Solicitor General Bryson, Assistant Attorney General Gerson, Deputy Solicitor General Roberts, Douglas N. Letter, and Bruce G. Forrest.
Deborah C. Costlow argued the cause for respondents. With her on the brief for respondents Beach Communica-
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