Press Release: New FCC Give-away

[Dave Farber <dave () farber net>]

Delivered-To: dfarber+ () ux13 sp cs cmu edu
Date: Wed, 12 Nov 2003 13:28:58 -0500
From: Jeff Chester <jchester () pop mail rcn net>
Subject: Release: New FCC Give-away
To: farber () cis upenn edu


Center for Digital Democracy
For Immediate release:
November 12, 2003                               Jeff Chester-202-494-7100



FCC Planning New Giveaway to Networks and Broadcasters Worth Billions

GOP-run Commission May Approve in December a Plan that Further Harms Public 
Interest


Washington:  The Federal Communications Commission may soon approve a 
policy that would benefit the four major broadcast networks at the expense 
of the public interest.  CDD has learned that at their next (December) 
meeting, the FCC could approve a new plan that is at the top of the 
broadcast lobby's political agenda: a proposal that would enable each TV 
station to broadcast multiple interactive channels over cable systems.  But 
the commission has thus far refused to require that broadcasters commit to 
a public interest "quid pro quo " in return, essentially giving the 
broadcasters the key to a digital "Fort Knox" free of charge. Chairman 
Powell appears to be willing to appease his two Republican colleagues by 
voting for this measure, rather than risk the embarrassment of siding with 
his critics.

Known as digital multicasting must-carry (and included in such FCC dockets 
as 98-120, 99-360, and 00-167), the plan-like the Commission's 
controversial media ownership policies-is being debated behind closed doors 
by some of the country's most powerful media giants, including Disney/ABC, 
Comcast, and the National Association of Broadcasters (NAB).  Broadcasters 
claim that only with this new special-interest decision will "free TV" 
survive, an issue that has roused the sympathy of Chairman Michael Powell 
(as has the "transition" to digital TV).  According to a recent lobbying 
document filed by Paxton Communications, for example, "Šthe only way to 
ensure the long-term viability of over-the-air broadcasting is by requiring 
full digital must-carry now."  As in the past, broadcasters are promising 
to provide new public interest programming if they are able to receive an 
additional special interest benefit.   But their track record of fulfilling 
such promises is very poor indeed-the broadcast lobby has long opposed 
"free time" for political debates and educational programming for children, 
for example.  Now they oppose the FCC requiring new public interest 
obligations as part of the digital give-away.  As for broadcasters being in 
financial harm, the four companies controlling the major broadcast networks 
generated more than $23 billion in 2002, with TV industry revenues almost 
$34 billion.   With this impending FCC decision, the broadcast networks and 
station groups would also receive a new form of "digital retransmission 
consent" that would bring them billions of dollars worth of additional 
cable channels as well.

"Before the FCC decides on any new must-carry rules, it must first finish a 
proceeding on public interest obligations for digital broadcasting," said 
Jeff Chester, CDD's executive director.  "The public deserves a meaningful 
dividend in terms of measurable services, such as free time for civic 
discourse, increased public affairs and children's informational 
programming.  Community groups should also benefit from the two-way 
broadband pipe that broadcasters were given as a result of their lobbying 
Congress in the 1996 Telecommunications Act.  Only after such a proceeding, 
should the issue of must-carry can be legitimately discussed."

Chester also noted that public television is lobbying for such must-carry 
rules.  "While it is understandable that some FCC Commissioners may wish to 
aid PBS, they shouldn't endorse a huge broadcast bonanza without first 
protecting the public interest for all viewers," he said.

The cable industry is opposed to this proposed FCC plan, with channels such 
as C-Span, Discovery, and even the Weather Channel recently lobbying the 
FCC.  CDD believes that cable arguments that the FCC can't or shouldn't 
require carriage of public interest programming is a specious one.  "It 
should not be a question of whether the FCC caves in to one special 
interest or another-in this case broadcasters versus cable.  The FCC-at 
least this time-should act as if the public interest really mattered," said 
Chester.

CDD has urged the public to contact Chairman Powell , other members of the 
FCC and Congress to express their opposition to this plan.  To learn more, 
go to: www.democraticmedia.org

                                --30--
  Filing of Paxson Communications, FCC Docket 98-120, Oct. 1, 2003.
  Filing of NAB, FCC Docket 99-369, April 21, 2003.
  "100 Leading Media Companies," Ad Age Special Report, Aug. 18, 2003.

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