S 2494 IS 105th CONGRESS 2d Session S. 2494 To amend the Communications Act of 1934 (47 U.S.C. 151 et seq.) to enhance the ability of direct broadcast satellite and other multichannel video providers to compete effectively with cable television systems, and for other purposes. IN THE SENATE OF THE UNITED STATES September 17, 1998 Mr. MCCAIN (for himself, Mr. LEAHY, Mr. HATCH, Mr. DEWINE, and Mr. KOHL) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation
A BILL To amend the Communications Act of 1934 (47 U.S.C. 151 et seq.) to enhance the ability of direct broadcast satellite and other multichannel video providers to compete effectively with cable television systems, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the `Multichannel Video Competition Act of 1998'. SEC. 2. FINDINGS. The Congress makes the following findings: (1) In the Cable Television Consumer Protection and Competition Act of 1992, Congress stated its policy of promoting competition in cable services and making available to the public a diversity of views and information through cable television and other video media. (2) In the Telecommunications Act of 1996, Congress stated its policy of securing lower prices and higher quality service for American telecommunications consumers and encouraging the rapid deployment of new telecommunications technologies. (3) Notwithstanding the intent of Congress as expressed in the 1992 Cable Act and the 1996 Telecommunications Act, in most places throughout America, cable television system operators still do not face effective competition from other providers of multichannel video service. (4) Absent effective competition, the market power exercised by cable television operators enables them to raise the price of cable service to consumers, and to control the price and availability of cable programming services to other multichannel video service providers. (5) Direct Broadcast Satellite service has over 8 million subscribers and constitutes the most significant competitive alternative to cable television service. However, Direct Broadcast Satellite Service currently suffers from a number of statutory, regulatory, and technical barriers that keep it from being an effective competitor to cable television in the provision of multichannel video services. The most prominent of these barriers is its inability to provide subscribers with local television broadcast signals. Other barriers include the higher cost consumers must pay for equipment, installation, and additional equipment to receive service on additional television sets. (6) Permitting providers of direct broadcast satellite service to retransmit local television signals to their subscribers would greatly enhance the ability of direct broadcast satellite service to compete effectively in the provision of multichannel video services. (7) Unlike cable television systems, providers of direct broadcast satellite service cannot carry all local television broadcast signals in all the local television markets they serve. (8) It would be in the public interest for providers of direct broadcast satellite service to fully comply with the mandatory signal carriage rules at such time as terrestrial or satellite-based technology enables them to do so. In the interim, requiring full compliance with the mandatory signal carriage rules would substantially harm the ability of direct broadcast satellite service providers to compete in the provision of multichannel video services and would not serve the public interest. (9) Local television broadcast licensees whose stations are not carried by providers of direct broadcast satellite services are entitled to be compensated for any demonstrable loss of revenue that will result. (10) Millions of subscribers to direct broadcast satellite service currently receive the signals of network-affiliated stations not located in these subscribers' local television markets. In many cases, distant network signals may be these subscribers' only source of network television service. (11) Notwithstanding the prevalence of distant network signals and their importance as a component of direct broadcast satellite service to millions of subscribers, a recent ruling by a federal district court will result in many subscribers losing these signals, regardless of whether local network signals are actually viewable off-air or not. (12) Widespread carriage of distant network stations in local network affiliates' markets can cause local affiliates to lose audience share and revenues, which would in turn harm their ability to serve their local community. Therefore, it would best serve the public interest to ensure that distant network stations are carried only where local network stations cannot be received off-air. (13) Abrupt termination of satellite carriers provision of distant network signals would deprive direct broadcast satellite subscribers of an important component of their existing satellite television service, and have a severely negative impact on the ability of direct broadcast satellite service to compete effectively in the provision of multichannel video services. (14) It is in the public interest for direct broadcast satellite subscribers who cannot receive acceptable over-the-air service from their local network-affiliated stations to continue to receive distant network signals for an interim period sufficient to permit the Federal Communications Commission to redefine those situations in which the permanent carriage of distant network signals would be appropriate. (15) Improving the ability of providers of direct broadcast service to compete effectively in the provision of multichannel video services by eliminating remaining statutory and administrative barriers to competition would be consistent with the intent of Congress as expressed in the terms of the 1992 Cable Act and the 1996 Telecommunications Act. SEC. 3. PURPOSE. The purpose of this Act is to promote the growth of competition in the provision of multichannel video services by expeditiously removing certain statutory and regulatory barriers that prevent providers of Direct Broadcast Satellite Services from competing effectively with cable television systems. SEC. 4. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION BROADCAST SIGNALS. Part I of title III of the Communications Act of 1934 (47 U.S.C. 301 et seq.) is amended by adding at the end thereof the following: `SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS. `(a) PURPOSE- The purpose of this section is to promote competition in the provision of multichannel video services by-- `(1) enabling providers of direct broadcast service to offer their subscribers the signals of local television stations; and `(2) accommodating, for an interim period, technical limitations that preclude providers of direct broadcast service from carrying all local signals in all local television markets. `(b) APPLICATION OF MANDATORY CARRIAGE TO SATELLITE CARRIERS- Except as otherwise provided in this section, the mandatory carriage provisions of section 614 of the Communications Act will apply no later than January 1, 2002, to satellite carriers retransmitting television broadcast signals. `(c) RULEMAKING REQUIRED- Within 180 days after the date of enactment of the Multichannel Video Competition Act of 1998, the Commission shall adopt regulations to facilitate the provision of all qualified local commercial and noncommercial television stations, either through satellite or terrestrial means, by providers of direct broadcast satellite service providing video programming. `(d) INTERIM REQUIREMENTS- `(1) INTERIM REQUIREMENT- Before January 1, 2002, or the effective date of the final regulations adopted pursuant to subsection (c) (if that date is earlier), a provider of direct broadcast satellite service providing video programming shall-- `(A) carry all local television stations eligible for carriage; or `(B) compensate any such station not carried. `(2) COMPENSATION FORMULA- Within 180 days of the date of enactment of the Multichannel Video Competition Act of 1998, the Commission shall prescribe a formula to be used to determine the audience and revenue loss incurred by a local television station as a result of its noncarriage by a provider of direct broadcast satellite service under paragraph (1)(B), and procedural rules for the expeditious resolution of petitions requesting compensation. `(3) BURDEN OF PROOF- A local television station, otherwise eligible for carriage, whose signal is not carried by a direct broadcast satellite service provider under paragraph (1)(B), may petition the Commission for an order directing that provider to pay compensation under this paragraph. In any proceeding on such a petition, the burden of proof shall lie with the petitioner. `(4) COMPENSATION LIMITED TO FORMULA AMOUNT ABSENT UNUSUAL OR COMPELLING CIRCUMSTANCES- The Commission may not grant compensation under this subsection for any projected revenue loss except in accordance with the formula prescribed by the Commission under paragraph (2) unless the Commission determines that unusual or compelling circumstances warrant additional compensation. `(5) ADDITIONAL COMPENSATION- If the petitioner shows that the compensation determined under the formula would be insufficient to enable the petitioner to operate in the public interest, the Commission shall award additional compensation under this section. `(6) TIME LIMIT FOR COMMISSION ACTION- The Commission shall issue a decision on any petition filed under paragraph (3) no later than 150 days after the petition is filed. `(e) GOOD SIGNAL REQUIRED- A local television broadcast station eligible for carriage under subsection (b) shall be required to bear the costs associated with delivering a good quality signal for retransmission by the satellite carrier.'. SEC. 5. CARRIAGE OF DISTANT NETWORK SIGNALS BY SATELLITE CARRIERS. (a) PURPOSE- The purpose of this section is to promote competition in the provision of multichannel video services by enabling direct broadcast satellite providers to offer distant network signals to consumers in areas receiving inadequate over-the-air reception of local television signals. (b) CONTINUED RETRANSMISSION OF DISTANT NETWORK SIGNALS- Notwithstanding any other provision of law, satellite carriers retransmitting the signal of a distant network station to households located within an area served by a local affiliate of the same network and receiving service as of July 10, 1998, shall not be required to discontinue carriage of the distant network station to such households prior to February 28, 1999. Nothing in this subsection is intended to modify the duration of the license granted in section 119 of title 17, United States Code. (c) RULEMAKING REQUIRED- The Federal Communications Commission shall complete a single rulemaking proceeding in which it shall rule on any petitions or similar matters regarding the definition of unserved areas or households. Any definition adopted by the Commission must consist of an objective measure of a satisfactory signal obtainable by use of generally-available off-air reception devices of the type used by the average viewer. The Commission shall complete this rulemaking proceeding within such time as to enable any rule change to become effective no later than February 28, 1999. (d) NO REMISSION OF PENALTY- No action taken by the Commission pursuant to subsection (c) shall indemnify any provider of direct broadcast satellite service from any liability for any prior violation of section 119(a)(5)(D) of title 17, United States Code, or from the imposition of any penalty therefor. SEC. 6. RETRANSMISSION CONSENT. (a) AMENDMENTS- Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) is amended-- (1) by striking the subsection designation and paragraphs (1) and (2) and inserting the following: `(b)(1) No cable system or other multichannel video programming distributor shall retransmit the signal of a broadcasting station, or any part thereof, except-- `(A) with the express authority of the station; `(B) pursuant to section 614, in the case of a station electing, in accordance with this subsection, to assert the right to carriage under such section; or `(C) pursuant to section 337, in the case of a station eligible, in accordance with this subsection, to assert the right to carriage under such section. `(2) The provisions of this subsection shall not apply to-- `(A) retransmission of the signal of a non-commercial broadcasting station; `(B) retransmission of the signal of a television broadcast station outside the station's local market by a satellite carrier directly to subscribers if-- `(i) such station was a superstation on May 1, 1991; and `(ii) on December 31, 1997, such station was a network station and its signal was retransmitted by satellite carriers directly to at least 500,000 subscribers; `(C) retransmission of the distant signal of a broadcasting station that is owned or operated by, or affiliated with, a broadcasting network directly to a home satellite antenna, if the household receiving the signal is located in an unserved area; `(D) retransmission by a cable operator or other multichannel video programming distributor (other than by a satellite carrier direct to its subscribers) of the signal of a television broadcast station outside the station's local market, if such signal was obtained from a satellite carrier and-- `(i) the originating station was a superstation on May 1, 1991; and `(ii) the originating station was a network station on December 31, 1997, and its signal was retransmitted by a satellite carrier directly to subscribers.'; and (2) by adding at the end the following new paragraph: `(7) For purposes of this subsection: `(1) TELEVISION BROADCAST STATION- The term `television broadcast station' means a full power television broadcast station, but does not include a low-power or translator television broadcast station. `(2) BROADCASTING NETWORK- The term `broadcasting network' means a television network in the United States which offers an interconnected program service on a regular basis for 15 or more hours per week to at least 25 affiliated broadcast stations in 10 or more States. `(3) NETWORK STATION- The term `network station' means a television broadcast station that is owned or operated by, or affiliated with, a broadcasting network. `(4) LOCAL MARKET- The term `local market' means the designated market area in which a station is located, and-- `(A) for a commercial television broadcast station located in any of the 150 largest designated market areas, all commercial television broadcast stations licensed to a community within the same designated market are within the same local market; `(B) for a commercial television broadcast station that is located in a designated market that is not one of the 150 largest, the local market includes, in addition to all commercial television broadcast stations licensed to a community within the same designated market area, any station that is significantly viewed, as such term is defined in section 76.54 of the Commission's regulations (47 C.F.R. 76.45); and `(C) for a noncommercial educational television broadcast station, the local market includes any station that is licensed to a community within the same designated market area as the noncommercial educational television broadcast station. `(5) DESIGNATED MARKET AREA- The term `designated market area' means a designated market area, as determined by Nielsen Media Research and published in the DMA Market and Demographic Report. `(6) UNSERVED AREA- The term `unserved area' means a place that does not receive an off-air signal from a local network station that meets or exceeds the standards established by the Commission.'. (b) EFFECTIVE DATE- The amendments made by subsection (a) are effective January 1, 1999. END |