June 3, 2004
House Commerce Committee Chmn. Barton (R-Tex.) asked Wed. why the Committee shouldn’t require a firm 2006 deadline for transition from analog to DTV. The question left speechless the panelists at the Telecom Subcommittee hearing on the FCC Media Bureau’s DTV transition plan. Barton asked: “Why shouldn’t the Committee just uphold the 2006 deadline and pay for converter boxes” for the poor and elderly? CEA Pres. Gary Shapiro and FCC Media Bureau Chief Kenneth Ferree had replies, but only after conspicuous moments of silence. NAB Pres. Edward Fritts said nothing.
Barton also said it was “appropriate” for the FCC to propose that conversion of digital broadcast by cable operators be considered part of the 85% threshold for DTV conversion. Barton said the goal of the act that established the transition deadline “is not about promoting high- definition television directly, but about reclaiming the analog spectrum as soon as possible while minimizing the number of consumers who must take additional steps after the transition to continue watching television.”
Barton disputed the conception that the FCC proposal doesn’t promote HDTV. “When faced with the end of analog broadcasts, more consumers will purchase high-definition televisions,” said Barton, which will in turn lead to more HDTV content. Even the broadcasters don’t argue the transition is about HDTV, he said, which is evident by their push for multicast must-carry. Barton also questioned must- carry. “I am skeptical of must-carry in the analog world,” he said: “I have yet to be convinced why it should be expanded in the digital world. Market forces are and will continue to promote high-definition and multicast television where and when appropriate.”
In response to Barton’s question about a govt. subsidy for conversion boxes, Shapiro said CEA was “uncomfortable” with the proposal. But Barton said debating such a proposal is “our job.” Ferree said a subsidy wouldn’t resolve must- carry. Barton said the “primary debate” was over how to return the spectrum. “We want everyone to be treated fairly,” Barton said. “This Committee has the ability to do that.”
Fritts argued the Media Bureau’s proposal was “against the best interest of the American consumer.” “Millions of Americans would potentially lose their local television service altogether and millions more would find secondary television sets in their homes rendered obsolete,” he said. Fritts said the FCC should endorse the NAB proposal to allow a broadcaster to choose must-carry for either its DTV signal or analog signal. “This is a plan that will expedite the DTV transition rather than delay it,” he said.
Fritts also said broadcasters believe the transition should be speeded up because broadcasters are now paying for 2 transmissions. Barton praised Fritts for acknowledging the need for an expedited transition, saying many NAB members “don’t want to give up” their spectrum.
Reps. Towns (D-N.Y.) and Bass (R-N.H.) had questions about how much converter boxes would cost. Shapiro said currently they cost between $200-$400, but mass production could cut the price to less than $100. Rep. Buyer (R-Ind.) asked why CE companies still made analog TVs with conversion coming. Shapiro said manufacturers base their production on demand, saying they still made black & white TVs.
NCTA Pres. Robert Sachs told the Committee the FCC’s DTV plan shouldn’t expand any must-carry requirements. SBCA Pres. Richard DalBello said he supports the FCC’s plan. Shapiro said the FCC plan should include a hard deadline for downconversion of the digital signal to analog. He also said CEA supports DBS efforts to be allowed to broadcast DTV signals in white areas, where broadcasters’ DTV signals aren’t available. — Terry Lane