Satellite TV bill heats up battle of the airwaves (local TV on DISH)
cnn.com
(CNN) - A bill that would make it so millions more subscribers can receive local channels via satellite TV is expected to become law late this summer, raising the desirability of the cable alternative.
Both the House and Senate have passed versions of the Satellite Copyright Competition and Consumer Protection bill, HR 1554, sponsored by Rep. Billy Tauzin (R-Louisiana).
The bill is designed to free up satellite TV providers from regulations that prevent them from offering local channels along with cable channels, movies and pay-per-view events, as cable services do. Most satellite TV subscribers nationwide currently cannot receive local stations with their systems.
The Senate appointed members last week to a joint committee to work out a compromise and the House appointed its members Wednesday, said Tauzin staffer Ken Johnson.
"We're very optimistic that we'll have a bill on the president's desk by August 1," Johnson said.
Eight out of 10 people who consider signing up for pay TV service say they opt against satellite TV because providers usually fail to provide local service, said Karen Watson, director of government relations for EchoStar's Dish Network, one of the nation's two primary satellite TV providers.
Dish Network's Web site is plastered with warnings that local and network feeds are in danger unless people urge Congress to support the bill.
"If it's a good bill, it authorizes local broadcasts into local markets and it says broadcasters can't discriminate when they negotiate retransmission rates," Watson said.
Satellite TV leaves some disgruntled
The Dish Network, based in Littleton, Colorado, with 2.5-million subscribers nationwide, is a challenger to DIRECTV, based in El Segundo, California, with 7 million subscribers. There are 67 million cable homes. Dish systems already are growing faster, and the pending legislation would accelerate the competition.
Most satellite TV subscribers have to use an antenna or pay for cable television to receive local channels
But many satellite dish owners complain that copyright disputes reduce their viewing choices.
Harry Runge, a satellite TV system owner, complained when his satellite company was forced to stop sending him CBS and the Fox network because of a legal dispute with broadcasters.
"I would like to have access to the quality of the signal instead of having to use the off-air antenna that's installed in the attic," Runge said.
Runge wrote his congressman and both senators, and he's not alone. Thousands of cards, letters and calls have been pouring in. Some lawmakers say they've received more mail on the dish issue than on impeaching the president.
Same dish for some DIRECTV subscribers
DIRECTV currently provides no local channels, but its subscribers in New York City and Los Angeles will have the option to receive their four local network affiliates -- ABC, CBS, Fox and NBC -- the "minute the ink dries" from the president's signature on the bill, said DIRECTV spokeswoman Gina Scalise.
Subscribers in those areas will be able to use their current dishes and equipment to receive the local affiliates, she said.
The addition of local channels could make satellite TV more competitive with cable TV
DIRECTV then will select 20 top market areas, covering about 50 million TV-viewing households, where new satellites acquired when DIRECTV bought Primestar and United States Satellite Broadcasting will offer local affiliates to subscribers.
The plan is to get some of those areas going by the end of this year, Scalise said. DIRECTV has yet to announce which areas will have this option, and to get that feed, subscribers must buy entirely new systems, Scalise said. There is no plan to provide rebates to current subscribers to cover that cost, she said.
Currently, DIRECTV subscribers in remote areas can pay additional fees to subscribe to network affiliates. Outside those areas, subscribers must use an antenna or pay for basic cable service to get their local channels.
Dish Network would rework systems for all
In contrast, Dish Network offers limited local service already in 13 major cities where local signals are too weak for antenna service.
If the bill passes, Dish Network will expand its local stations service to 25 market areas including 55 percent of the nation's population, said EchoStar's Watson. EchoStar will send out technicians to retrofit the dishes for current subscribers.
"We'll do that at no cost to the consumer," she said.
Watson said she is uncertain that the final legislation will open up competition for satellite TV providers, due to the strong broadcast and cable TV lobbies which might force changes before it becomes law.
"At its best, it would allow us to expand into more local markets which would make us more competitive with cable," Watson said. "At its worst, it'll make us retrench and provide only a few cities with their local channels." |
