03-23-1992 Council Packet - Laserfiche WebLink

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?r ij' T F h' V«. '*:ia! Tone Plan Rings No One's Chimes .-l»Siipil By JEANNINE AVERSA 1A ff ^HINGTON — No one is happy about the ■IM Federal Communications Commission’s so- ■f V called video dial tone proposal. Not c<d)]e, not telephone companies, not bro^asteis. not municipal groups, not local regulators. all have a stake in the outcome of the agency's proposal, which would permit telephone companies to deliver video services without a cable franchise. Roughly 71 entities, mostly telephone companies and a handful of cable outfits, filed comments for the first time on the FCC’s proposal last week. The agency hopes to issue a ruling later this year. In general, the telephone companies, including all seven Baby Dells, called on the rcc to move forward cn a much bolder plan than the agency has proposed. The telcos want the FCC to giv them much more freedom in delivering cable services and to refrain from imposing new layers of regula tion on them in this area. The United States Telephone Asso- ciatio:i said "the commission must define video dial tone to accommo date everything that is not video pro gramming — excluding nothing that is possible under the Cable Act.” To do so. the FCC must modify some of its rules, notably rules that limit teko entry lo a “carrier-user” relationship. Without being allowed to own arid package programming services on their own, the telcos told the FCC, there is hardly any incentive for them to embark on the video dial tone path. Pacific Telesis Group was the most vocal on this point. As a result, the telcos urged the FCC to ask Congre.ss to repeal the 1984 Cable Act’s cross-own ership provision. This provision forbids telcos from owning and programming cable systems inside their service areas. Cable groups criticized the FCC’s plan as vague, smacking of industrial policy aiKl lacking in important details, such as how costs would be allocated, how tar iffed prices for the service would be calculated and how independent cable systems would be protected from anti-competitive acts by telcos. “Although the commission discusses several con ceptual approaches to regulation, it has not presented any concrete stand^»ds for specific comment.” com plained Tele-Communications Inc. The National Cable Television Association argued that the FCC can implement video dial tone without ni-i-r. ait.. making changes in existing cross-ownership prohibi tions. The Community Antenna Television Association said the FCC was engaging in “some questionable le gal gymnastics to develop a rationale supporting its proposal.” lire FCC has said it hopes video dial tone gives tel cos an incentive to build broadband networks. Mean while, both cable companies and telcas are making in vestments in fiber optics. The FCC’s proposal would place cable “in an intolerable regulatory disadvan tage.” said Cablevision Systems Corp. Broadcasters, who oppose telco involvement in pro gramming but .support pcmnilting telcos to transport video signals on a regulated basis, expressed cofKems about how they will fare under a video dial tone mod- cl. The National Association of Broadcasten said cer tain safeguards are needed first to prevent anti-competitive behavior by telephone companies. Those safegua^ might include forbidding telco selection of programs, pro gram marketing and program orien tation. Municipal groups and local reg ulators, which want to .see competi tion to cable develop, said the plan gives them too little a role in over seeing video dial tone facilities, un fairly jumps over the cable franchise process, doesn’t compensate the public for use of its property and is unclear as to the division of state and federal jurisdiction. The National League of Cities, the U.S. Conference of Mayors, the National Association of Teleconunu- nications Officers and Advisers and three other mu nicipal groups urged the FCC to impose on video dial tone providm the same obligations that existing cable operators have, such as customer service requirements and the provision of public access channels. The Motion Picture As.sociation of America offered a unique suggestion: empanel an advisory committee of representatives from the telephone and production coriununities, among others, ibat would make recom mendations to the FCC on the form and substance of video dial tone. The National Telecommunications and Information Administration used the proceeding to renew a call for full telco participation in the cable and programming busine.sscs. The NTIA said the FCC’s proposals are too detailed. ■ J m