Wicker Hears Some Support for Short STELA Renewal at Hearing; Uncertainty Remains

“Members will have to decide” what the best compromise is between the extremes of a sunset and permanent renewal, said Senate Commerce Chairman Roger Wicker, R-Miss., in an interview. He opened the panel repeating his position that the law remains "critical" for "preserving access to video services for those that typically find themselves on the wrong side of the digital divide" (see 1902270018). Wicker and committee ranking member Maria Cantwell, D-Wash., both support an abbreviated renewal term. "We don't know” what the video market will be like at the end of another five-year term, Cantwell said. Wicker pressed witnesses on the “appropriate length” for a shorter-term recertification.

Consumer Reports Senior Policy Counsel Jonathan Schwantes delivered one of the few definitive responses, deeming it “important” STELA be recertified for at least two years “if only to keep the current system of laws as it is” in hopes a “larger” video market revamp discussion can happen in the interim period. NAB TV Board Chairwoman Emily Barr repeatedly urged lawmakers let the statute expire. An extension of "even “five more minutes” beyond Dec. 31 is unacceptable, she said. AT&T Senior Vice President-Content and Programming Robert Thun would “definitely prefer” Congress permanently re-enact the law. Golden West Telecommunications CEO Denny Law said he's “always open to ideas” on an abbreviated renewal but favors a permanent extension.

There's clearly “a factual dispute as to what will happen” to the estimated 870,000 satellite customers dependent on STELA if it expires “at the end of the year and if so, whose fault it will be,” Wicker said after the hearing. Barr and Thun repeatedly battled, including about who's to blame for the lack of locally broadcast network station access in the 12 markets where AT&T's DirecTV provides limited or no such access (see 1903150045). Sen. Jon Tester, D-Mont., focused on those markets because two are in Montana. “I'm not sure what the hell we can do about it on this panel” but “maybe we can do something about it, and I hope we do,” he said.

Barr contended AT&T made a “business decision” not to provide satellite station access to DirecTV subscribers in those markets. Thun said broadcasters chose not to use equipment like repeaters to amplify their signal at edges of viewing areas. Barr and Thun disagreed on STELA's continued efficacy and the extent to which broadcasters would continue to engage in good-faith retransmission consent negotiations if the law expired.

No Decision

Senate Communications Subcommittee Chairman John Thune, R-S.D., and other Commerce members we spoke with after the hearing appeared no closer to reaching a decision.

“The hearing was instructive and there's been a big push to do a straight-up extension” by “one side of the table,” but “I'll have to sit down with [Wicker] and figure out what his thinking is because he'll be the one driving that process,” Thune said. “We need to make sure whatever we do is very pro-consumer.” He said during the hearing he has no plans to refile his “Local Choice” broadcast a la carte proposal, which he first proposed amid the 2014 STELA process (see 1408110056).

Senate Communications ranking member Brian Schatz, D-Hawaii, told us he anticipates Commerce will mark up a renewal measure in November and “if that's the will of the committee, I'll be working hard to improve upon the current law and make sure that we have a diversity of opinions reflected on broadcast TV.” Schatz and other Democrats raised concerns during the hearing about the effect broadcaster consolidation has had on local stations' news content. They questioned whether consolidation adversely affected prices for pay-TV subscribers.

Sen. Deb Fischer, R-Neb., believes the hearing brought up “a lot of issues and obviously we have to take it all under consideration. For me, there's not a clear path forward right now” on reauthorization. She's one of the Senate Commerce members who drilled down on the ongoing issue of orphan counties, noting that Cherry County and other western parts of Nebraska received programming from the Denver market but should be getting more content that would allow viewers to be “engaged” on in-state issues. Law suggested the current market designations may have “outlived their usefulness.”

Sens. Tammy Baldwin, D-Wis., and Richard Blumenthal, D-Conn., said they're also not sure how they want to proceed on STELA. Baldwin used the hearing to tout her Go Pack Go Act (S-2454), which would require cable, satellite and other video providers to give their Wisconsin subscribers access to programming from broadcast TV stations in a Wisconsin media market. Blumenthal said ensuring continued access to local news is “vital for democracy” and pressed officials on whether a sunset of the statute would “lead to more or fewer blackouts.”

Sen. Ed Markey, D-Mass., cited two of his bills as potential contenders for inclusion in a STELA measure. HR-3002/S-1655 would force Charter Communications' return to “good faith negotiations” to resolve carriage disputes over WCVB-TV Boston and WWLP Springfield for the operator's subscribers in western Massachusetts. The Truth-in-Billing, Remedies and User Empowerment over Fees (True Fees) Act (HR-1220/S-510) would require all telecom, cable and broadband providers to include all charges in advertised prices. The measure would allow customers to end contracts with providers without early termination fees if the provider increases prices, and would prevent equipment fee increases unless providers improve the devices (see 1902140045).

Law, Schwantes and Thun urged including language from the Modern Television Act (HR-3994) in a STELA package, something House Minority Whip Steve Scalise, R-La., and Rep. Anna Eshoo, D-Calif., have also sought. HR-3994 would repeal some parts of the 1992 Cable Act, including retrans (see 1907290053). Black News Channel Chairman J.C. Watts wants a renewal bill to revamp Communications Act Section 335 to allow direct broadcast satellite providers to use their set-aside channels for independently owned educational and informational content.

Law suggested “narrower, targeted” video market changes are possible even if a more desirable “fundamental overhaul” is no longer feasible given the limited legislative calendar. Those changes can include a more “meaningful” good faith requirement, prohibition on price discrimination within each market and bar on broadcasters' mandatory bundling or tying of additional non-network channels, he said. Schwantes seeks “stronger” good faith requirements and the inclusion of HR-1220/S-510 language in a recertification bill.