HOUSE BILL WOULD ENFORCE ORIGINAL 2006 DEADLINE FOR BROADCASTERS

Described as “a staff discussion draft,” bill was intended to be starting point for Sept. 25 hearing on DTV transition before Tauzin and Dingell’s House Commerce Committee. However, with little time left in this year’s legislative session, observers said it was unlikely bill would see much action beyond committee. Nevertheless, it put broadcast, cable and consumer electronics industries on notice that DTV transition would be high on committee’s legislative agenda in 2003. “The lack of progress in private interindustry negotiations and the number of outstanding FCC rulemakings has led to uncertainty in the marketplace,” Tauzin said. “While we prefer marketplace solutions, clearly it is time for us to provide leadership in this area.”

NAB said it wouldn’t comment on draft until Sept. 25 hearing. However, one broadcaster said “there is nothing more anticonsumer than if they wake up one morning and their TV sets are turned off.” Broadcaster suggested such provision wasn’t likely to survive in final legislation, at least in present form: “We're at the beginning of the beginning. This is just the first shot out of the barrel.” Under bill, FCC could not delay its DTV tuner mandate deadline (CD Aug 9 p1) without congressional approval and all network affiliates would have to pass through network DTV signals without degradation.

Draft didn’t address several major issues, including whether there would be must-carry requirements for digital multicasting. It said only that language on that was “to be supplied.” Broadcasters want to use entire digital 6 MHz given to them by Congress to transmit ancillary data and services, as well as multiple channels of broadcast programming. Multicasting has been major sticking point for cable operators, which believe that, as on dual must-carry, their First Amendment rights give them control over their cable systems and, thus, right to deny carriage.

NCTA Pres. Robert Sachs praised House Commerce staff for efforts but said cable industry would “continue to work to achieve interindustry solutions to as many of these issues as is possible.” Sachs didn’t mention CableLabs, which effectively was cut out of equation on digital display equipment that included digital interface connections. Proposal said any regulations “shall not” require CE industry compliance with CableLabs’ OpenCable Applications Platform (OCAP) or any successor specification to provide 2-way capability. Bill also said regulations could permit manufacturers to “self-certify” compliance with regulations - - something CE manufacturers had demanded. CableLabs Pres. Richard Green was unavailable for comment.

Bill would direct FCC to create rules within 120 days of enactment that would ensure digital CE equipment interoperability and portability with cable systems. Cable operators, by July 1, 2005, would have to transmit signals in accordance with American National Standards Institute that allow subscribers to receive, without separate set-top box, basic and premium digital TV programming in standard and high-definition and simple pay-per-view standard digital programming if offered by cable operator. By same date, cable operators would have to make available to subscribers security PODs manufactured within ANSI standards. Bill would repeal FCC rule prohibiting multichannel video program distributors from providing new navigation devices that had security and nonsecurity functions.

Draft bill is “a starting point, not an ending point,” CEA spokesman said, and CE industry looks forward to more industry efforts to resolve disputes. Bill would require that all digital TV display equipment include digital interface connections and that equipment be upgradeable. It would affirm FCC schedule to incorporate DTV tuners in devices. CEA spokesman called bill “a critical and helpful step” in process and said group was “particularly pleased” with focus on cable compatibility, which he said “would ensure that the 70 million cable subscribers can participate in the DTV transition.” He said DTV tuner provision simply codified what FCC decided: “Everybody gets spanked a little bit, but everybody gets a little bit.” On other issues, he said “there are many provisions that require further review and discussion.”

Bill would direct FCC to require that digital devices capable of receiving digital signal recognize use of so- called “broadcast flag” by Jan. 1, 2006. Flag -- which industries have been working on -- would protect digital content from unauthorized retransmission over Internet. Proposal would direct FCC to establish expedited process, which could include self-certification, for FCC to determine whether content protection technologies were sufficient. FCC would be directed to establish set of criteria for evaluating technologies and asked that agency ensure that requirements didn’t impose unnecessary or unreasonable burdens on product design or manufacture or stifle innovation; protect full functionality of CE equipment manufactured before 2006; remain technology-neutral; take into account possible advances in technology. Bill would direct FCC to order end of analog equipment by July 1, 2005. News and public affairs programming, in particular election coverage, couldn’t be subject to broadcast flag protections, bill says.

Under bill, content providers and manufacturers could incorporate broadcast flag technology licensing terms as long as they didn’t diminish functionality of CE equipment intended for noncommercial uses and as long as terms were not “broader than necessary” to prevent theft of services. It would provide exemption for professional equipment. Draft also would allow industries to petition FCC to sunset broadcast flag regulations if many technologies emerged and enforcement no longer was necessary for consumers. FCC would have to conduct biennial reviews of its regulations in that area under bill.

Bill includes consumer protection provision that would require FCC to regulate notices to consumers on devices. Equipment notices would have to disclose when devices wouldn’t receive, record or display digital TV content, and recording notices would have to tell consumers that protection technologies prevented replay of some content.

Staffer of one House Commerce Committee member said bill lacked some important provisions, most notably must-carry requirements for cable. While bill did address dual must- carry requirements for analog and digital signals, it didn’t stipulate other must-carry requirements, staffer said. Staffer also said legislation should include policy on how to handle consumers affected by analog TV blackout date included in bill. Staffer didn’t believe bill would be introduced this session.

“By setting a date certain, it would ensure that public safety, homeland security and the wireless industry will finally receive the spectrum that they were promised by Congress,” CTIA spokesman said: “This is a positive step forward.” Congress this summer passed legislation that indefinitely postponed most of lower and upper 700 MHz auctions that had been set to start June 19. Bidding on smaller C- and D-block licenses of lower 700 MHz band was completed Wed.