Smaller Cable Operators Want DTV Legislation to Mandate DBS Signal Sale
The American Cable Assn. (ACA) wants Congress to require DBS to sell local broadcast signals to small rural cable operators that can’t get adequate signals on their own. But DBS operators say they've been investing heavily, especially in local HD, and hesitate to help competitors. The ACA went to Capitol Hill this week en masse to push this and other industry priorities in anticipation of the DTV transition.
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It’s not about DBS having to sell signals to big cable operators in urban settings, according to Pete Abel, vp-community and govt. relations for cable company Cebridge Connections and a participant in the ACA meetings. “We aren’t suggesting that you force DBS through a legal mandate to sell its signal to Comcast in the middle of San Francisco, but move down to Truckee, and it’s a different story,” Abel said. As DBS launches more local-into-local channels, cable operators far from TV stations can’t match DBS local signal quality, he said. “We can work to put up repeater sites or use fiber, which are options in big communities, but is [sic] cost prohibitive in smaller places so small cable operators are left with an inferior signal of high demand stations and no viable way to pick them up,” said Abel: “But we could get them from satellite if DBS would sell.” Cable programming can’t be withheld from satellite broadcasters, and the rules should be reciprocal, he said.
A company spokesman said EchoStar believes “broadcasters are the appropriate party to serve the cable operator with an acceptable signal.” But if cable operators want to talk business with EchoStar, “we would be pleased to have discussions with them,” he said. ACA Pres. Matthew Polka said cable already has tried to negotiate with the DBS providers to buy local signals, and now ACA is “making this a Congressional issue.” Cable operators “should have the legal right and DBS should have the legal obligation to enter into discussions for the cable operator to be able to purchase, at a reasonable price, the transport of signals,” said Abel.
The ACA’s concern is that “no solutions will materialize unless they are mandated by law,” and a DTV bill would be “an immediate and opportunity for Congress to act on this,” said Abel. The digital transition will exacerbate the problem for small cable operators by shrinking broadcast signal coverage areas, he said. Analog signals gradually fade over distance, but digital signals abruptly go dark, Abel said: “People currently on the outer reaches of a DMA will be left without a signal.” Abel said cable already has lost “dozens and dozens, if not hundreds of customers, who are switching because they can’t get a good signal and we've had to shut cable operators down, removing competition from rural communities.” Owing to service bundling, when a cable operator goes under, “you also remove any near term hope that they're going to have for high speed broadband or competitive phone service,” Abel said.
A DirecTV spokesman said the firm would be “happy to discuss business arrangements with cable operators,” but DirecTV is “spending an enormous amount of money to provide local digital and HD signals to our customers, and cable companies shouldn’t expect to ride on the coattails of that investment.” DirecTV launched Spaceway 1 April 26 to bolster its HD capabilities for delivery of local HD channels starting in 12 markets this fall, and a Spaceway 2 launch is planned for June (CD March 31 p6). EchoStar is positioning itself for local HD delivery with the purchase of Rainbow 1 and the launch of EchoStar 10 late this year (CD May 6 p3).