CEA Hails Passage of Satellite Home Viewer Act as ‘Bold Step’ for DTV

Sources said congressional negotiators could still reach agreement on pending issues such as spectrum relocation trust fund, E-911 funding and adjustments to accounting procedures for E-rate and universal service fund, which were stalled partly over unrelated boxing legislation. Senate Commerce Committee Chmn. McCain (R- Ariz.) placed holds on several bills, including the telecom- related measures, in an effort to include boxing legislation in the package. Congress is scheduled to return Dec. 7 to reopen negotiations on intelligence legislation, and sources said other outstanding bills could be reviewed.

The weekend saw congressional passage of the Satellite Home Viewer Improvement Act (SHVIA), the lone communications- related “must pass” bill of the last session. DBS and broadcast industry officials claimed victory in the action, as did CEA which praised it as “a bold step” toward helping millions of Americans join the DTV revolution.

SHVIA’s 2-dish provision -- which prevents DBS providers from offering local channels on a 2nd dish -- is a blow to EchoStar. But sources said it appeared EchoStar had little chance of preventing passage, as its 2-dish policy was seen by members of Congress as discriminatory against minority and religious broadcasters. The bill gives EchoStar 18 months to end the practice, though the original House proposal had sought to end the practice in a year.

There was dispute, however, over whether the bill would create a so-called “digital white area” for DBS providers. NAB Pres. Edward Fritts said the bill would “thwart efforts to establish ‘digital white areas.'” Broadcast sources said SHVIA included several provisions that protected local broadcasters from digital distant programming once local-to- local programming was offered by DBS. But DBS sources said the bill established mechanisms to allow DBS to broadcast distant digital signals in areas where broadcasters’ digital signals don’t reach. A DBS source said the bill would put pressure on local broadcasters to offer a full-power digital signal by the 2006 and 2007 deadline set forth in the bill, or face distant digital competition offered by DBS.

Several public statements seemed to contradict Fritts’s statement that “digital white area” was “thwarted.” McCain said: “I am pleased that passage of this bill will, for the first time, ensure that these same Americans can enjoy digital High-Definition television programming via satellite, even if they are unable to receive the broadcast signal over-the-air. The idea is simple: a consumer who pays good money for an expensive high definition television set should not be denied the ability to enjoy exclusive network programming like the Super Bowl or the All-Star game in high definition merely because he lives in a rural area. This is the right result for rural Americans.” EchoStar said: “The forward-thinking digital white area provision will motivate local broadcasters to build their towers and broadcast at full power in order to serve their communities. These changes will also help accelerate the digital transition and ensure the return of the 700 MHZ spectrum to the government.”

CEA also praised the white area provisions: “The so- called ‘white areas’ provision of the bill will allow satellite broadcasters to transmit DTV and high-definition (HDTV) network programming to television viewers who currently cannot receive these broadcasts from their local ABC, NBC, CBS or FOX affiliate. Just as these viewers can receive network broadcasts in standard definition via satellite, they now will be able to view them in the full glory of HDTV.”