Bill to rein in rising cable TV rates was introduced Tues. by Rep. Frank (D-Mass.), who said legislation was needed to amend provision in Telecom Act that deregulated cable industry at expense of consumers. Bill would repeal Sec. 301 of Act and restore FCC authority to act upon consumer complaints about cable service. “The FCC has lacked adequate authority over the cable monopolies and consumers have paid the price,” Frank said. “After 5 years of deregulation we have learned that the problem was not too much FCC action, but too little.” NCTA said bill was “step backward” and would interfere with network cable network upgrades and additional broadband deployment. “The 1996 Telecommunications Act spurred $45 billion in private investment to upgrade cable systems, resulting in the offering of digital video, high-speed Internet access and cable telephony services to millions of consumers,” NCTA said. “Cable customers have voted their approval by opting for more than 15 million units of these services since deregulation.”
U.S. Trade Representative (USTR) released reports Mon. that outline Bush Administration’s trade expansion priorities for 2001, including enforcement commitments for U.S. trade agreements. Among reports are: (1) Super 301, which reviews trade expansion priorities and focuses on unfair trade practices affecting U.S. exports. (2) Special 301, which covers U.S. enforcement of intellectual property rights. (3) Title 7, which covers discrimination in foreign govt. procurement practices. USTR official told reporters in background briefing Mon. that reports cited “significant” concerns with level of intellectual property protection in 51 countries that are trading partners of U.S., including Argentina, Costa Rico, European Union, India, Israel, Korea, Russia, Taiwan, Uruguay. “Enforcement must remain a key priority,” U.S. Trade Representative Robert Zoellick said. “We must step up our efforts to monitor compliance with our trade agreements and insist on performance by our trading partners. This administration will not hesitate to use the full power of U.S. and international law to do so.” USTR reports reiterated concerns in report released earlier this year on Mexico’s compliance with telecom market-opening commitments under World Trade Organization obligations. Reports Mon. said Mexico had made progress in areas such as ensuring that competitors obtained local interconnection from incumbent Telmex but “has not yet addressed the key issue of international traffic or enforced its dominant carrier rules.” Report that identifies Administration’s trade expansion priorities also outlines barriers to e-commerce. As example, report cites policy in Israel “that would disadvantage U.S. companies wishing to offer Internet access services over the cable platform and would favor the state-owned telecommunications company.” State-owned carrier, Bezeq, has been licensed to enter high-speed Internet access sector without incurring govt. licensing fees. Report said legislation had been introduced in Israel that would require cable companies seeking to compete in that market to pay licensing fees. “The United States is seriously concerned that regulatory favoritism undermines the investment environment in Internet services in Israel,” report said.
Bush Administration’s fiscal year 2002 budget proposal would increase funds for FCC, but White House’s long term strategy is to level off agency’s spending over the next 4 years. According to govt. budget details released Mon., Bush would increase FCC’s FY 2002 budget to $248.5 million from current $230 million. Total proposed outlays, or “amount the [FCC] actually spends in a given fiscal year,” would increase to $320 million from $301 million. Spending in FY 2003 and 2004 would drop to $302 million, then increase by $1 million in FY 2005 and FY 2006, respectively, under plan.
KAME-TV Reno faces $50,000 fine for repeated violations of ad limits in children’s TV, FCC said in notice of apparent liability. Station admitted violating limits 301 times in 1997 and 1998. Commission said station also failed to establish effective program to ensure compliance.
EchoStar said Mon. it now was offering Starband Internet service for DISH satellite TV and Starband subscribers. Customers can receive 2-way, high-speed Internet and satellite TV with same dish. DISH network retailers are offering service. Company also unveiled DISH Pro 501 satellite TV receiver that features 30 hours of digital video recording and other personal TV services, as well as Pro 301 TV receiver.