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FCC Meeting Delayed as Leaders Work on Compromise

Commission May Reach Compromise on Digital Must Carry, Program Access Rules

By Ted Hearn -- Multichannel News, 9/11/2007 3:00:00 PM

Washington -- Federal Communications Commission leaders were stuck in negotiations all day Tuesday in an effort to reach a compromise on a plan related to cable carriage of digital TV signals in early 2009.

The FCC’s monthly public meeting did not start as scheduled at 9:30 a.m. as the five FCC commissioners remained mostly backstage with their aides in back-and-forth discussions. By 4 p.m., agency leaders still had not emerged with a deal.

In addition to DTV rules, FCC leaders were also debating the extension of rules that force cable operators to license their satellite-delivered networks to DirecTV, EchoStar Communications, and other cable systems. The rules, for example, require Time Warner to license HBO to EchoStar and Cablevision Systems.

Over the cable industry’s legal and policy objections, FCC chairman Kevin Martin wants to force cable companies to carry hundreds of local TV stations in analog and digital until the cable systems had all-digital networks, which would mean all of their former analog customers had acquired digital reception capabilities.

Martin’s rule would apply to so-called must carry stations, those that demand cable carriage instead of bargain for it. Unlike commercial TV stations, the country’s 386 public TV stations may choose only must carry.

As a compromise, the National Cable & Telecommunications Association countered with an offer that would require large cable operators to carry the must carry stations in analog and digital for a period of three years. NCTA’s plan would exempt all systems 550 MHz capacity or less or any system with 5,000 subscribers or fewer.

The American Cable Association, the small cable system trade groups, is seeking an exemption for all systems 552 MHz and smaller or all systems with 15,000 subscribers or fewer.

Since the meeting start kept being postponed, it appeared that Martin did not have unanimous support for his dual must carry plan. Martin’s plan would also ban cable systems from compressing digital broadcast TV signals. NCTA is opposing that idea as well, saying it would eat up scarce channel capacity.

FCC officials were also debating whether to extend the program access rules for five years, over cable’s mild objections.

NCTA and HBO were more worried about inclusion of a Martin proposal that would expand access to cable programming contracts by parties that had filed program access complaints.

The program access provision that bans exclusive deals between an MSO and an affiliated satellite-delivered network is to expire on Oct. 5 if not extended by the FCC.

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