Time Warner already owns programming and would like to expand its distribution capabilities, analysts noted.

Networks were not vertically integrated - which is to say they didn't own most programming and most didn't make television sets - but they did take a much more vertical approach to their audiences than the movies did.

Congress must take the next step by lifting the restrictions of the 1984 Cable Act, which prohibit telephone companies from owning programming.

The station is currently owned by Hope Presbyterian Church and broadcasts religious programming including music as well as live broadcast of church services.

"I think they will be allowed to act as carriers by providing video dial tone, but I doubt they will be allowed to own programming," Mr. Crawford said.

Telephone companies had earlier been prohibited by the Cable Act of 1984 from owning or distributing video programming.

The News Corporation does own extensive programming through its Fox television network, film studio and sports rights.

The regulations limit the ability of networks to own programming and, by extension, make it next to impossible for them to acquire or merge with a studio.

To go that far, however, the commission must work around the Cable Communications Policy Act of 1984, which bars telephone companies from owning programming in their markets.

Increasingly, networks are pressing to own as much programming as possible to generate new revenue sources to offset declining audiences and rising program costs.