SMALL CABLE OPERATORS PRESS FIGHT FOR BROADBAND DEPLOYMENT
Large group of small cable operators descended upon Congress Wed., pushing for various broadband deployment bills now under consideration to aid cable as much as telecom. About 50 members of American Cable Assn. (ACA), which represents 900 smaller MSOs, spent day on Capitol Hill, hoping to sway lawmakers to put technology-neutral provisions into any measures they passed. They argued that without such provisions, legislators would be favoring phone companies over cable operators even though they said latter had done better job of extending broadband services to rural and poor areas. “In smaller markets, regulatory restraint is working,” ACA said in position paper, contending that current balance shouldn’t be upset.
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In ACA’s latest membership survey, for instance, 38 small MSOs said they already had started offering high-speed data service to 840,000 homes passed in 355 communities. That group and 36 more cable operators said they planned to extend service to another 880,000 homes passed in next 2 years. “ACA members are investing in infrastructure, transacting with unaffiliated ISPs and offering cable modem services to millions of smaller market consumers,” group said.
Rep. Stupak (D-Mich.), member of House Commerce Committee, agreed that cable operators had done more than their phone rivals to wire rural and poor areas for broadband. In lunch speech to ACA members, he opposed Tauzin-Dingell bill that would deregulate Bell provision of data service. “Why should we now give them [Bells] an unfair advantage over those who are already doing it?” he asked to applause. While bill is “well-meaning,” he said, “it’s not going to do anything to help deployment” of broadband services. He questioned Bells’ commitment to rolling out DSL service to inner-city and rural areas, saying Verizon and SBC offered only vague promises in their recent congressional testimony.
Stupak, who represents largely rural Upper Peninsula section of Mich., predicted Tauzin-Dingell legislation would pass House but die in Senate this year. In its wake, he said, he hopes to introduce revised version of his own broadband deployment incentives bill that failed to make it through his committee last year. “Hopefully, we can get it going,” he said. “We're trying to get a little momentum here and grab it if we can.”
Paul Margie, senior counsel to Sen. Rockefeller (D-W.Va.), sought to rally support of ACA members for Rockefeller’s broadband deployment bill, which would grant tax credits of 10% or 20% per year to companies that wire rural and underserved areas for high- speed access. In panel discussion, Margie said tax credit legislation, now co-sponsored by 53 senators and 147 House members, was designed to aid cable as much as telecom. “Our intention is to have it as technology-neutral as possible,” he said, adding that “cable companies are doing more than anybody else to roll out broadband.” He urged cable operators to suggest any changes in legislation’s provisions.
Will Nordwind, counsel to House Telecom Subcommittee Chmn. Upton (R-Mich.), focused on DTV transition. While his boss hasn’t reached any conclusions on spurring transition, Nordwind said, Upton is especially “anxious to understand” potential impact of broadcasting industry’s proposal to mandate digital tuners in all new TV sets over certain size. “He wants to understand the similarities to the UHF tuner debate” in early 1960s, Nordwind said. “He hasn’t embraced a solution yet but he wants to find out more.”
Citing ACA’s opposition to mandatory dual-carriage of analog and digital broadcast signals, Nordwind said Upton “really understands the capacity issues that cable companies face” in trying to add more channels. “I think he feels those arguments have merit and we need to be very careful,” he said. Nordwind said Upton planned to hold more hearings on DTV transition. “It’s something he wants to get his mitts on, get his arms around,” he said.
John Norton, chief of FCC Cable Bureau’s Policy & Rules Div., said “the competitive picture is getting more and more interesting” as DBS providers grow at much faster rate than cable operators. He declined to predict what action Commission might take on its current inquiries on open action and interactive TV. But he said there was “decent chance” that agency would issue report on open access inquiry in next 6 months.
ACA members also lobbied Congress to consider junking retransmission consent rules for smaller regions because of what they said was their “marketplace failure.” They called on lawmakers to ensure that access to broadcast and other programming “be on terms, rates and conditions that result in reasonable rates for consumers” in smaller and rural areas.