I'm surprised the market hasn't reacted more negative to this news.
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November 18, 1999
Dow Jones Newswires
Rural Lawmakers Lose On Satellite Bill As
Deal Reached
By MARK WIGFIELD
WASHINGTON -- Congress has apparently reached an agreement that
would allow passage of a bill allowing satellite television providers to carry
local television stations.
Over the objections of rural members, the agreement would drop a $1.25
billion loan guarantee program that would help cover the cost of providing
local television programming by satellite to rural markets. In return, Sen. Phil
Gramm, R-Texas, the chairman of the Senate Banking Committee, promised
to move a bill authorizing the loan guarantee to the Senate floor by next April.
Gramm had opposed the loan guarantee as corporate welfare.
The agreement clears the way for passage of the satellite bill, considered key
in satellite's ability to compete effectively with cable. The bill will also preserve
the industry's ability to get blanket copyrights for programming, a right that
was set to expire at the end of the year.
DirecTV, a unit of General Motors Inc. (GMH) has generally supported the
bill as an adequate compromise, while the other major carrier, Echostar
Communications Corp. (DISH), has said it still gives broadcasters the upper
hand in negotiating with satellite over the retransmission rights for local
stations.
As reported, language was dropped from the bill that would have prevented
Internet providers from getting the same type of blanket copyright permission
to distribute video programming that cable and satellite providers have.
Congress intends to revisit the issue, which is ambiguous in current law and
likely to be the subject of lawsuits should Internet service providers like
America Online Inc. (AOL) and others decide to transmit television programs
over the Internet.
The satellite bill is likely to be tacked onto a must-pass budget bill.
Negotiators have also apparently rejected some other attempts to tack
communications legislation onto the budget measure.
Among those are an effort by Lockheed Martin Corp. (LMT) to win required
congressional approval of its merger with Comsat Corp. (CQ). And efforts by
the Federal Communications Commission and Nextel Communications Inc.
(NXTL) to get wireless licenses controlled by NextWave Telecom Inc.
(X.NWV) out of bankruptcy court were also rejected.
- Mark Wigfield, Dow Jones Newswires; 202-828-3397
mark.wigfield@dowjones.com |
