Cable Thinks FCC Will Exempt Small Systems from DTV Carriage Rules
The two main cable industry lobbying groups believe the FCC will exempt small systems from a requirement that they distribute the signals of certain TV stations to all customers after the digital transition (CD Sept 11 Special Bulletin p1). American Cable Association and NCTA officials told us they believe a majority of commissioners want a blanket exemption for systems with fewer than 5,000 subscribers or with capacity below 553 MHz. Commissioner Jonathan Adelstein endorsed the move, his office said. The cable exemption would let systems that aren’t all digital carry broadcasters in either analog or digital and not force them to distribute the signals in both formats after Feb. 17, 2009.
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Adelstein’s office noted that he dissented in part to the Sept. 11 order imposing the carriage rules because it didn’t allow small, often rural cable systems to escape provisions of the so-called viewability rules. Under those rules, cable operators of all sizes must provide all subscribers with the signals of TV stations getting guaranteed carriage for three years after Feb. 17, 2009. That means systems not fully digital must carry one version of so-called must-carry stations to analog subscribers and another to digital subscribers.
Adelstein called for parity between cable carriage rules and an FCC order giving direct broadcast satellite providers until 2013 to carry the high definition signals of TV stations in all markets they serve with local broadcasters. “I ask my colleagues to extend to small cable system operators the same level of fairness and consideration we provide to DBS operators,” he said. “Fair is fair.” Copps wants the FCC to act quickly on small operators’ carriage concerns, he told us: “My hope is that we approach those issues with the same sense of realism that we recently showed towards DBS.” The other FCC members’ offices declined to comment or didn’t return messages.
Cable industry officials hope a coming order on the viewability rules’ application to small operators will contain such an exemption, they said. Unveiling the viewability rules in September, FCC Chairman Kevin Martin said he'd issue a further order in six months. But he didn’t say when the clock would start ticking and the deadline is unclear, said cable officials, including American Cable Association Vice President Ross Lieberman. An FCC spokeswoman declined to comment on the deadline.
“We think the operators need an answer as soon as possible on this, as the commission itself indicated back in September,” said NCTA Senior Vice President Dan Brenner. Representatives of that group will meet with Media Bureau officials on the exemption, he said. “We're going in this week to talk to the bureau and plan to visit the eighth floor to see if we can help move this along,” said Brenner. “We think it’s right.” NCTA President Kyle McSlarrow said last week that at least three FCC members support a blanket exemption.
Officials at ACA, representing small operators, soon will visit the FCC’s top floor to argue for blanket exemptions in meetings with commissioners and their aides, said Lieberman. Based on comments by Commissioners Adelstein, Michael Copps and Robert McDowell at the Sept. 11 FCC meeting, ACA believes they're amenable to a blanket waiver. The small operators’ case was helped by a March 3 Small Business Administration filing expressing concern about the rules, said Lieberman. Cable’s case was further strengthened by support from about a dozen members of Congress, including Senate Commerce Committee Ranking Member Ted Stevens, R-Alaska, and Rep. Lee Terry, R-Neb., a member of the House Commerce Committee.
NAB disputes the need for an exemption. “These rules essentially created the right kind of set up -- we don’t think there should be a blanket waiver,” said a spokesperson. “Someone who is really in dire straits” can seek an individual waiver, the official said. “We think the capacity issues are largely overstated.”