03-23-1992 Council Packet - Laserfiche WebLink

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r: r Battle Lines Shape Up Over House Bill By Vincente Pasdeloup IIsTiif: House Telecommunications Mand Finance Subcommiltee prepares In vole on cable legislation b/ mid-March, the bailie lines are being drawn. In light of a telco drive to make sure any House bill includes an amendment that paves the way for telcos to get into the cable business with as little restric tion as possible. Trygve Myhren. presi dent of the Providence Journal Co., has suggested that the cable industry and broadcasters need to call a truce. In a Feb. 18 speech to the Washington Metro Cable Club, Myhren presented an alternative to retransmission consent. Under his plan, cable systems would pay a "modest" compilers fee represerU- ing 2-2.5 percent of gross revenue from broadcast tiers to a pool that would be di vided among local stations according to llteir ratings. Tlie Providence Journal Co. favors keeping the compulsory license for local signals, gradually eliminaling it for dis- Lnnt signals, and "reasonable" must-carry and channel positioning for local signals. Myhren said. "1 am baffled by the fact that many lo cal broadcasters support retransmission consent," Myhren said. “In the case of network affdiates. their network com pensation will be cut if the local station receives any money for granting re transmission." Syndicators also will take any money paid by cable operators, he added. Myhren said he hasn't discussed his proposal with other members of the Me dia Group, a coalition of companies with interests in cable and broadcast. Tlie Na tional Association of Broadcasters had no comment on Myhren's plan. The U..S Telephone Assot ialion is preparing an amendment to a House ca ble bill that would let telephone comP'i- nies into the cable TV business with few restrictions. The USTI?. askeii two members of ilie subcommittee. Reps. Rick Boucher (D- Va.) and Michael Oxley (ROliin). to in troduce their .amendment on a bipartisan seriously doubt we are going to see rapid approval of telco legislation after the Judiciary Committee hearing this week.” Stephen Effros (irfsiiicnt Community Anlrnna Television Association b.isis. but the representatives haven't giv en final approval Tie telco amendment would include fewer restrictions than a similar bill intro duced by Sen. Conr,i<l Burns (R-Mont ) that's pending before the Senate Commu nications Subcommiltee. according to a telephone industry source. bearing date set The Burns bill would allow all (He- phonf companies, including Boll holding companies, into the business of providing video programming if they build a fiber optics nelwork and gel approval for Iheir plans from the FCC and their slate public utilities commissions. A hearing on the bill has been scheduled FH> 28. -1 seriously doubt we are going to see rapid approval of telco legislation af ter the Judiciary Committee bearing this week.** said Stephen Fffros. presi dent of the Community Antenna Televi- sion Association. A’ a Feb. 19 hearing, the chnirmnn of the Mouse Judiciary Fconornic and Com nicrcial I>aw subcommittee. Rep. Jack Brooks (fvTexas). Innted that be would introduce legislation to limit telco entry into information services. le cable industry's strategy at this point is »o prevent retransmission con sent from being included in the House bill, according to observers. Tlic provi sions currently are in a stand alone bill. Hie elections also will play a large role in the future of any cable legislation, ac cording to Capitol Hill observers. Depending on the source, the threat of a presidential veto may have in- ''reased or lessened after President Bush's showing in the New Hampshire primary. The current political debate fa vors candidates who prefer less, rather than more, government intervention in the business world. Fffros said. One Re publican source said a veto would de pend on what type of bill is finally passed and at what point in the campaign it reaches Bush's desk. Meanwhile, Jeff Chester of Ralph Nader’s Center for Democracy is leading an aggressive press campaign against senators who voted against S. 12 — in particular. Sens. Bob Packwood (R-Ore.) John Kerry (D Mass.). Ted Stevens (R- Alaska) and Tim Wirth (D-Colo.). Chester has said he ’ll do the same thing in the House by targeting Representa tives who receive large contributions from the cable industry ’s political action committees. Supporters of telco entry will get the same treatment, Chester said.