Sat TV Scrutinizes New Legislation

[Gregg Lengling]

The satellite TV industry turned its attention to the U.S. Senate Tuesday with the introduction of the "Satellite Home Viewer Extension and Rural Consumer Access to Digital Television Act" by Nevada Sen. John Ensign.

The bill, Ensign said, would require satellite TV providers to supply customers that cannot receive an over-the-air digital signal from the four major networks with a distant digital network signal by satellite.

Ensign also said his bill includes strong protections against abuse and tough penalties to ensure that satellite TV providers comply "with a fair and equitable process by which all Americans can take part in the digital transition in a realistic timeframe." Local broadcasters that cannot turn on a full-power digital signal due to circumstances beyond their control will not be unfairly penalized under the legislation, the Republican said.

"My goal is to make sure consumers are not denied digital television based on where they live or whether the digital conversion has been completed in their area," Ensign said. "People outside major market areas, like those in rural Nevada, should not be left behind in the digital television revolution."

The bill also would mandate that satellite TV providers phase out the use of two-dishes to deliver local channels, with the first group customers impacted by the two-dish scheme seeing the proposed switch in six months. The mandate takes aim at EchoStar and its use of two dishes to deliver a number of local channels to a select set of markets.

Karen Watson, vice president of government relations at EchoStar, said the company is concerned about the bill's proposed timetable to move locals to one dish, but added, "The legislation is a step in the right direction to help ensure more vibrant competition and services for consumers."

Watson also said, "We are encouraged by Sen. Ensign's desire to help speed the digital transition by enabling satellite TV providers to offer a network HDTV signal to consumers in those markets where a local broadcaster is not meeting its legal requirement to provide a digital signal."

The bill's proposal to phase-in the transition to one dish in markets where two dishes are used "is far better than the unworkable plan proposed in the House legislation," Watson said. "But we remain concerned with the proposed timetable in the Senate bill because six months is not enough time for consumers to receive the equipment necessary to continue receiving local service and not enough time to build a new satellite. We fear the initial deadline will create major consumer inconvenience, confusion and frustration."

Watson said EchoStar is urging Congress to provide a four-year period for conversion to a one-dish solution "to ensure the necessary time to construct and launch a new satellite in order to comply with any single dish mandate."

The Digital Transition Coalition, which is working on issues tied to the switch to digital TV, commended Ensign for his bill. The legislation will ensure that the transition to digital TV will take place more quickly, the organization said.