In the 1980s cable policy in the UK was based on the assumption that t
he development of cable would be domestically financed and 'entertainm
ent-led', with cable television helping to 'pull through' advanced int
eractive services. in the 1990s policy makers and cable operators have
discovered the much larger role that is being played by telephony in
driving the development of cable. Cable is now seen as at least as imp
ortant to telecommunications policy as it is to broadcasting policy. D
ata on the development of cable suggest that this policy is leading to
a more geographically diverse pattern of telecommunications competiti
on and an increasing diversity in the price and/or quality of telecomm
unication services supplied to different places. The emerging imbalanc
e raises questions about the effects on patterns of urban and regional
development. As currently constituted, however, the UK regulatory reg
ime has no effective way of recognizing or addressing these questions.