Communication Bills in Limbo as Congress Rushes to Finish
At our deadline, several communications-related issues had yet to be resolved as time wound down on the 108th Congress. The fate of many seemed tied to boxing legislation pushed by Senate Commerce Committee Chmn. McCain (R-Ariz.), which has some House opposition. Industry and congressional sources said McCain was insisting on passage of the boxing bill before other bills pass.
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It appeared likely that most of these measures would have to be moved in the omnibus appropriations bill Congress was expected to approve Fri. evening or Sat. morning. Several sources said an agreement on the Satellite Home Viewer Improvement Act (SHVIA) would be in the omnibus. It’s unclear if it will include other remaining legislative goals: Spectrum relocation trust fund, E-911 funding or a temporary exemption of the Universal Service Administrative Co. (USAC) from Anti- Deficiency Act (ADA) rules. Also, FCC Comr. Adelstein’s renomination still hadn’t been acted on by the Senate, though the Senate Commerce Committee did approve his nomination Fri. morning.
Several sources said a renewal of SHVIA likely would be attached to the omnibus, which was expected to be released Fri. evening. Both broadcast and DBS industry sources were claiming victory on SHVIA, which sources said would allow DBS to offer digital distant signals in some cases. EchoStar would have 18 months to stop using a 2nd dish to deliver certain local stations to subscribers. As expected, the bill would modify royalty rates DBS owes for distant digital and superstation signals. Also, DBS would be given the right to offer “significantly viewed stations” adjacent to a viewer’s locale.
Broadcast sources said the SHVIA compromise would expand local-to-local coverage. Also, broadcaster sources said the bill would include several safeguards to protect local stations. According to sources, the bill would codify the current analog white area provisions that let DBS broadcast distant digital signals to areas unserved by even a local analog signal. Subscribers who can receive analog signals, but not a local digital signal, would eventually be allowed to request a distant digital signal after tests are conducted. Sources said viewers in so- called “digital white areas” could request testing in late 2006 or early 2007 to determine if they qualify for the white area exception. But the test must be conducted by a neutral entity and broadcaster sources said the testing requirements give local broadcasters several protections, including exceptions to the right of viewers in a digital white area to request the test, a broadcast source said. However, a DBS industry source said the FCC would be allowed to study and comment on the testing mechanism.
Another provision that sources said broadcasters support would require DBS providers to take local-into- local packages if they offer a distant digital signal. Sources said viewers who receive digital local-to-local signals can’t get a distant local signal.
DBS sources said the “white area” provisions would let DBS into more areas and put more pressure on broadcasters to move the DTV transition forward. A source said the SHVIA compromise would get the FCC more involved in determining which viewers can receive a distant digital signal. Broadcast sources said the test requirements use the current analog test requirements that broadcasters favor, but DBS sources said the bill would involve the FCC in improving the testing criteria. SHVIA is considered must-pass legislation.
Also on Fri., The House passed the Internet Tax Moratorium (S-150) on voice vote. Now that the House has approved the Senate bill, the retroactive extension of the tax ban moves to the President, who has indicated he would sign it. The measure would extend the ban on Internet access taxes until Nov. 1, 2007. The ban expired on Nov. 1, 2003, when House and Senate were battling over details such as how to protect local tax and regulatory authorities and whether to make the ban permanent. The bill included some technical adjustments approved Wed. by the Senate. The bill doesn’t touch VoIP, leaving the regulatory status quo in place, and also doesn’t distinguish between broadband distribution technologies like DSL, cable or wireless. House Judiciary Chmn. James Sensenbrenner (R-Wis.) said the bill was a big win but was still “inferior” to the House’s permanent ban (HR-49), which he would continue to press for. USTA, TIA and the Chamber of Commerce said they support the extension.