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Backed by the Paramount movie studio, Telemeter’s cable cost anywhere from $150 to $450 to install, depending on a home’s location, and the coin-operated signal descrambler cost an additional $21.75.

And unless all TV manufacturers equip their products with digital tuners capable of handling Time Warner Cable's encrypted signal, there's no choice but to use some sort of external box as a descrambler.

HBO was one of the first to act, announcing that it would begin encrypting its signal and requiring satellite owners to pay for a descrambler box and a monthly subscription if they wanted to watch the channel.

"There will be a lot of screaming and hollering," says Beverly Jean Ely, a dish dealer in Hawthorne, Calif. "But I think everyone will eventually break down and buy a descrambler."