STUDY SAYS DBS IS PLANNING TO IGNORE RURAL CUSTOMERS
DBS industry will leave behind most of U.S. TV stations when new spot beam satellites are launched, according to study by Equal Airwaves Right Now (EARN), organization supported by 20 broadcast companies and consumer groups. At least 2/3 of U.S. market (1,100 TV stations) won’t receive local TV signals, said EARN study, The Left Behind Project. In news conference at National Press Club Tues., group cited new study as demonstrating why FCC should license competing services such as Northpoint. EARN Exec. Dir. Peter Pitts said “satellite giants” made decisions on must-carry “based on pure profit and politics” with no consideration of “public interest.” He said policy on local TV carriage was “wrong.”
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EARN said satellite companies were focusing service on top markets. Study provided public statements from top officials in DBS industry that EARN said hinted at such policy. Satellite Bcstg. & Communications Assn. (SBCA) called EARN statements “totally unfounded, reckless and misleading.” SBCA said organization was “clearly a front for terrestrial services.” EARN is nothing more than another “public relations vehicle for terrestrial services to try to influence” policymakers, SBCA said. Charging that DBS companies made decisions “without a thought to public interest” was not only “absurd,” it showed EARN had “little or no knowledge of how video marketplace works,” SBCA said.
Ignoring rural customers is in “stark contrast” to policy promoted when satellite services were introduced as alternative to cable years ago, EARN said. Study said 160 of 210 total markets wouldn’t receive local TV stations once spot beam satellites were launched. “Not only can’t a majority of Americans get their local TV channels by satellite, the same satellite giants are also denying low-cost, high-speed access to the Internet, in effect running tens of millions of Americans off the side of the Information Superhighway.” Pitts said satellite companies were “touting the spot beams as a solution, but they're not.” He said spot beams were aimed at markets already being served. “The satellite industry takes advantage of free spectrum, but they ignore the needs of American communities.”
Groups supporting EARN findings included Benedek Bcstg., Consumer’s Federation, Eagle III Bcstg., Granite Bcstg., Gray Communications Systems, League of United Latin American Citizens, LIN TV Corp., Media Access Project, National Assn. of Black Owned Bcstrs., Northpoint-Broadwave USA, Paxson Communications, Second Generation of Ia. Northpoint said it had “technological solution to local signal problem,” CEO Sophia Collier said at news conference. “Our solution requires no changes in current law and will allow all satellite TV subscribers to get local signals.” She said that if DBS operators “can’t supply service, FCC should license someone who can.”
Meanwhile, Media Access Pres. Andrew Schwartzman said his group supported immediate licensing of Northpoint and opposed spectrum auction as some Northpoint rivals had proposed in Commission filings. He said there was “an odor of strategic delay” surrounding recent applications replicating Northpoint service. “We want the Commission to proceed ahead.” Schwartzman said it was “hypocritical” for DBS companies to seek public support for program access and other forms of regulatory relief and then turn around and challenge constitutionality of SHIVA and must-carry regulations. “We are minor players in this exercise.”