Never been a McCain fan til today

[Tom Snyder]

Wednesday, May 1, 2002  FOR IMMEDIATE RELEASE CONTACT: Pia Pialorsi 202/224-2670

McCain Issues Statement on Today's Missed DTV Deadlinee
     
Washington, DC -- Senator John McCain (R-AZ), Ranking Republican of the Committee on Commerce, Science, and Transportation, today made the following statement on the Senate floor regarding the May 1, 2002, digital television transition deadline:

"The date May 1st is significant in U.S. history for major technological achievements. On this day in 1935, the Boulder Dam, later renamed for President Herbert Hoover, was completed. On May 1, 1947, radar for commercial and private aircraft was first demonstrated. On May 1, 1844, Samuel Morse sent the first telegraphic message. Each of these achievements represented significant technological milestones that have greatly benefitted millions of Americans.

"May 1, 2002, was supposed to be a wonderful day that represented another technological milestone for American television viewers. Today is the deadline for all commercial television stations in the United States to be broadcasting a digital signal. Theoretically, consumers should now be able to receive a digital signal from each and every commercial broadcaster in the country.

"Unfortunately for consumers, a vast majority of broadcasters have missed today's deadline, leaving consumers' digital TV tuners with little more than static. In fact, according to recent figures from the FCC and the National Association of Broadcasters, over 1011 or 77% of commercial broadcasters have failed to meet the May 1 deadline. Moreover, 834 commercial stations filed waiver requests with the FCC seeking an extension to complete the construction of their digital facilities.

"The transition to digital television has been a grave disappointment for American consumers and nothing short of a spectrum heist for American taxpayers. Let me read you a few headlines that recently appeared in newspapers across the country: The Boston Globe – 'Missed Signals: Many TV Stations Seen Lagging on Deadline to Offer High Definition', The San Jose Mercury News – 'Static blurs HDTV transition; Industries squabbling stalls Digital Television', USA Today – 'Digital TV Revolution Yields Mostly White Noise', and finally Mr. President, the most remarkable and earth shattering headline from Monday's New York Times – 'Most Commercial Broadcasters Will Miss Deadline for Digital Television.'

"This morning's USA Today states, 'Today was supposed to be a milestone in the grand conversion to digital broadcast television. Instead it serves as a marker for how poorly the transition is going . . . At the current pace, broadcasters will be able to keep all of their spectrum, digital and analog, in perpetuity. That means a substantial chunk will remain locked up in broadcasters' hands, instead of being put to more valuable uses, such as for advanced cell phone services. Not only are those needed, the spectrum also could be sold for billions, aiding a deficit-laden U.S. Treasury.'

"The broadcasters have not only missed today's deadline, but they have broken their promise to Congress and American consumers. In testimony before the Commerce Committee in 1997, the NAB stated, 'We agreed to an aggressive rollout for this new technology . . . Broadcasters have made a compact with Congress concerning high definition television. We will meet our commitments.'

"Today it is clear that three quarters of those broadcasters have not met their commitments, and their failure to do so is slowing the transition to digital television. A slow transition affects Americans not only as consumers, but also as taxpayers. Broadcasters were given $70 billion in spectrum to facilitate the transition on the condition that they return it when the transition is complete. By failing to meet today's deadline, broadcasters continue to squat on the taxpayers' valuable resource.

"While I am generally disappointed and frustrated by broadcasters failure to live up to their promises, I recognize that some television networks are contributing to the transition. For example, CBS has been one of the leaders in providing digital content to consumers. They broadcast a large majority of their prime time schedule in high definition, or approximately 16 hours per week. In addition, ABC is currently broadcasting all of their scripted prime-time programming in high definition. Providing compelling content to consumers is an important component to the DTV transition. The more stations that are DTV capable and are broadcasting in high definition, the more consumers will migrate to this new technology and purchase products that allow them to view enhanced programming.

"I believe that broadcasters, as beneficiaries of this Great American Spectrum Rip-off, bear heightened responsibility for facilitating the DTV transition. I recognize, however, that even if the broadcasters were to meet their commitments, the transition would not necessarily be complete. Digital broadcasts are one cylinder of the engine needed to drive the transition. Many other issues still remain unsolved and I do not underestimate the amount of work that needs to be done. Michael Powell, Chairman of the FCC, has also recognized this. In what I believe is a step in the right direction, Chairman Powell has advanced a proposal that incorporates provisions for all of the industries involved with the DTV transition and asks for voluntary cooperation to accelerate the transition.

"Chairman Powell has called for the top four networks to provide DTV programming during at least 50% of their prime-time schedule beginning in the 2002-2003 season, and asked DTV affiliates of the top four networks in major markets to obtain and install the equipment necessary to broadcast a digital signal and inform viewers that digital content is being broadcast. The proposal also calls on cable operators with 750 MHz systems or higher to offer to carry, at no cost, the signals of up to five broadcast or other digital programming services. Additionally, the proposal asks the Direct Broadcast Satellite industry to carry the signals of up to five digital programming services that are providing DTV programming during at least 50% of their prime-time schedule. Finally, the proposal calls on the equipment manufacturers to include over-the-air DTV tuners in new broadcast television receivers between 2004 and 2006. I understand that certain industry representatives, including certain broadcast networks and earlier today the cable industry, have expressed a general willingness to answer Chairman Powell's call. I think this is also a step in the right direction. I am hopeful that these commitments will lead to results.

"Make no mistake, I continue to be a firm believer in market forces, which is why I believe that this voluntary proposal is an appropriate step at this time. We must be mindful, however, that valuable public resources are at stake here. Should the transition continue to be delayed, alternative measures will need to be taken in order to reclaim the spectrum for which so many other productive uses can be found and which rightfully belongs to the American taxpayers.

"I believe therefore, that Congress needs to be prepared to intervene, if necessary, to protect the taxpayers of this country. If significant progress isn't made in the DTV transition, then I will introduce legislation that will not be voluntary. Codifying Chairman Powell's voluntary proposal may be the mildest measure we should consider.

"Let me emphasize the importance of this point. Significant progress needs to be made on the DTV transition. If progress continues to stall, then perhaps a more aggressive approach such as reclaiming the spectrum from the broadcasters beginning January 1, 2007, will be required.

"In closing, I want to point out that I realize that this transition has not been easy for all of the industries involved. Some of these industries have made intensive efforts, devoting significant time and resources to make DTV a reality, but many difficult issues surrounding the DTV transition still remain.

"During a 1998 Commerce Committee hearing on the DTV transition I stated that, "[I would not] suggest that the government now ought to step in and immerse itself in micromanaging every bit and piece of this process. Government is not very good at that." While I still believe that government is not good at micromanaging the marketplace, I believe that the hour may be nearing when the government should step in and find solutions to the mess we helped create. More importantly, I believe that Congress has a duty to protect the taxpayers of this country and reclaim the spectrum so that it may be put into its best use.

"I'll finish with one final observation. For the most part, the Telecommunications Act of 1996 has failed to live up to its promises to consumers. I believe that its failures can teach us a valuable lesson while we watch many of the same industries involved in the passage of the Act grapple with the conversion to DTV.

"The lesson we should have learned from the failure of the 1996 Telecom Act is that the interests of major telecommunications companies and average American consumers are not the same. Where the interests of the industries and the interests of the consumers diverge, Congress must assure that the consumers come first. The failures of the Telecommunications Act show what happens when Congress first fails to see where the interests of industries are incompatible with the interests of consumers, and then fails to act once it does. I intend not to let this happen and will move forward with legislation should progress not be made in the coming months."