BOUCHER SAYS DIGITAL TUNER MANDATE ‘ABSOLUTELY’ IS NEEDED

Speaking Sun. at Bcst. Education Assn. lunch, satellite pioneer Stanley Hubbard of Hubbard Bcstg. predicted that public mass purchase of digital sets “isn’t going to happen” without legislation requiring digital tuners in all TV sets sold to public. Subject also was raised at legal panel by Washington attorney Richard Wiley, chmn. of FCC Advisory Task Force on DTV, who pointed to all-channel law passed by Congress in 1964 as precedent. However, panel of FCC and Hill staffers raised question of cost to consumers -- estimated at $300 per TV set.

House Commerce Committee leaders may not as be receptive to digital tuner legislation as broadcasters, Rep. Barton (R-Tex.) said of House panel, of which he’s member. He said it was “probably open” to considering such measure but wouldn’t “automatically” endorse it. Under leadership of Chmn. Tauzin (R- La.), members will be more receptive to market-oriented solution, requiring further dialog between industry and Congress, he said.

Jessica Wallace, telecom counsel to House Commerce Committee, on separate congressional staff panel later in morning, affirmed Barton’s assertion that Tauzin might not embrace digital tuner mandate. Tauzin “doesn’t feel it’s the right approach right now” since it would “take away flexibility from American consumers,” Wallace said. Will Nordwind, adviser to House Telecom Subcommittee Chmn. Upton (R-Mich.), said Upton hadn’t taken position on possible tuner requirement but “hasn’t closed it” as option.

Boucher also praised NAB for playing critical role in drumming up congressional support for federal loan guarantee to implement nationwide local-into-local satellite TV service. Fiscal year 2002 appropriations process could make local-into- local reality, he said. “Our goal is to make sure that local TV signals delivered by satellite are available not just in the largest cities of our nation but in all 218 local television markets across the United States,” he said. With $1.25 billion in loan guarantees authorized, Boucher said: “I think we're well on our way to making sure it’s affordable to build a sufficient satellite capacity to expand local-into-local service on a true nationwide basis.”

Boucher said protections in guarding against copyright infringement in satellite and cable industries must be developed by over-air broadcasters. Group of recording equipment manufacturers and motion picture studios is “in the process of concluding” agreement to deploy “5C” copyright protection technology, which equipment makers would install in set-top boxes to guard against unlawful copying or transmitting of programming. “We have simply got to find a way to extend that kind of assurance to the material that is broadcast over the air,” he said.

Expressing concern that 5C agreement would enable content providers to make “cable-exclusive and satellite-exclusive” premium programs, Boucher said that could shut down over-air broadcaster access to such content. Ensuring flow of quality content to broadcasters is critical in aiding DTV transition, he said. He said he would work with industry to make sure such exclusive content arrangements didn’t become additional roadblocks to successful transition.

Copyright law already contains protections against content pirating, and it’s not known whether additional laws in that area are needed, Julian Epstein, chief counsel to House Judiciary Committee Democrats, said in staff panel discussion. He acknowledged that ease of digital pirating posed threat to marketplace stability and that committee leaders therefore saw need for private sector development of regime similar to 5C agreements. Broadcasters and content providers then could protect their own rights without impeding “fair use” rights of consumers, he said.