MCCAIN AGENDA TARGETS BROADCASTERS, CABLE
Broadcasters and cable operators appear to have most to fear from tentative agenda announced by Sen. McCain (R- Ariz.), who will become Senate Commerce Committee Chmn. in next term of Congress (CD Nov 22 p1). He said committee would “assess whether broadcasters are meeting their public interest obligations.” Commerce Committee also will also examine cable rates.
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Broadcasters weren’t surprised by McCain’s agenda, but believe he will have difficulty getting enough votes for most extreme versions of legislation. They said, however, that he was aware he would have to take bipartisan approach to bills. “That is where we [lobbyists] will be put to the test and earn our living,” one broadcaster said.
McCain had raised most of same issues in past, including sponsoring McCain-Feingold bill. Issues were raised again in meeting with his senior staff week ago, we're told, at which McCain said he would make big push for legislation in his last 2 years as chmn. He introduced free TV time bill (S- 3124) that would fund time through establishment of spectrum use fee based on percentage of station’s gross revenues.
McCain’s agenda probably isn’t that much different from what it would have been under chairmanship of Sen. Hollings (D-S.C.), one official suggested. McCain and Hollings didn’t agree on all of issues, he said, but Hollings probably would have at least allowed hearings on most of issues because of “senatorial privilege.” Broadcaster added: “This was all very predictable.” That doesn’t mean broadcasters will take it easy, he said: “We'll be busy next year.”
McCain staffer on committee said DTV transition also would factor into examination of broadcasters. He said McCain was very critical of grant of DTV spectrum to broadcasters, calling it “huge giveaway.” He said McCain had questions on whether broadcasters ever would give analog spectrum back.
McCain has asked General Accounting Office (GAO) to study rising cable prices. With that in mind, NCTA spokesman said it was no surprise that cable rates made agenda: “We take seriously any issue he and the committee raise over cable prices. We're eager to continue the dialog.”
Universal service didn’t make McCain’s agenda, but OPASTCO legislative dir. Donald Erickson said senator was likely to let upcoming Communications Subcommittee Chmn. Burns (R-Mont.) take lead on issue. Erickson also said it was noteworthy that FCC reauthorization was on agenda because rural lobbyists were likely to use issue to push for establishment of rural office in Commission.
McCain has his own ideas about broadband deployment. In Aug., he introduced “Consumer Broadband Deregulation Act of 2002,” (S-2863) that would deregulate retail residential broadband services. It also would “resist” govt.-mandated open access while providing “safety net” to ensure consumers had competitive broadband services market. Local and state barriers to broadband deployment would be removed, McCain said. Information clearing house in federal govt. would facilitate deployment of broadband services. Bill would utilize wireless technology and also enhance enforcement tools available to FCC, he said.
Some observers said McCain was likely to let FCC act on issues first before holding hearings. Robert Jackson, of Reed Smith, said McCain was likely to give Commission “time to focus” on issues before holding hearings. McCain is known as supporter of FCC Chmn. Powell. Jackson said McCain also was likely to support trend to open more unlicensed use of spectrum.