January 27, 2015, 12:00 pm
Ensuring rural access to reasonably priced video programming
By Shirley Bloomfield
TheHill.com
http://thehill.com/blogs/congress-blog/technology/230775-ensuring-rural-access-to-reasonably-priced-video-programming
In December 2014, members of House Energy & Commerce Committee released
the sixth white paper
<http://energycommerce.house.gov/sites/republicans.energycommerce.house.gov/files/analysis/CommActUpdate/20141210WhitePaper-Video.pdf>
as part of its ongoing “deep dive” into a potential updates of the
Communications Act of 1934 and the Telecommunications Act of 1996. This
latest white paper inquired specifically about ways to improve video
polices. For the 900 small, rate-of-return rural telecommunications
providers NTCA–The Rural Broadband Association represents, this query is
especially pressing as more of our members than ever before are in the
video business—and more challenged than ever to stay in it.
In fact, a recent member survey we conducted found that 77 percent of
respondents are providing video service to their customers. Eight
percent that are not currently offering video service plan to do so by
year-end 2016. At the same time, the challenges of offering video
services are many with 99 percent of survey respondents citing access to
reasonably priced programming as a chief concern.
The ability of providers of all kinds—but especially small, rural
providers—to obtain video content at affordable rates and under
reasonable terms and conditions will not only improve competition in the
video services market but will also spur broadband investment and
adoption in rural service areas. In its response
<http://www.ntca.org/images/stories/Documents/ntcacommactupdatewhitepaper6.pdf>
today to the House committee’s white paper, NTCA offers several simple,
common sense updates to the laws that govern the video services
marketplace. These updates are essential given the significant changes
in video markets over the past 20-plus years since the laws were last
updated.
First, we think giving video providers the freedom to purchase broadcast
content from neighboring markets would inject much-needed competitive
market forces into a tired and protectionist retransmission consent
regime, thereby enabling rural providers to pass cost-savings on to
consumers. NTCA also supports the creation of a standstill provision
that would preserve consumers’ access to a broadcast signal while
negotiations or dispute resolution proceedings are underway.
A rule that would allow small and mid-size providers to request the same
prices and conditions from any of the existing retransmission consent
agreements that a broadcast station has entered into with other
providers would also help to level the playing field among negotiating
parties and reduce a barrier to affordable video services that is
imposed by discriminatory pricing.
Transparency is a real concern too. Well-functioning markets depend
upon buyers and sellers making informed decisions among a variety of
options. But today, there is little to no transparency as broadcasters
demand mandatory nondisclosure provisions to keep prices for their
content hidden from competitors and consumers. Broadcasters should be
prohibited from using such provisions to frustrate the operations of the
marketplace.
Finally, and perhaps most importantly, the revised legislation should
put control back in consumers’ hands by eliminating forced tying and
tiering by all content providers. These practices unnecessarily increase
rural providers’ and consumers’ costs and make it nearly impossible for
providers to offer tailored, affordable service packages.
NTCA’s recommendations to the committee would promote competition among
video service providers in rural areas and would grant consumers access
to the content they desire at more affordable rates. NTCA members are
proven solutions providers when it comes to developing and sustaining a
mix of attractive and affordable services for the consumers they serve.
We know video is a critical piece of that puzzle. Now we look to
Congress as it proceeds with this important legislative update, and we
encourage policymakers to ensure that any statutory update regarding
video policy upholds the core principles of universal service, consumer
protection and competition.
/Bloomfield is chief executive officer of NTCA–The Rural Broadband
Association.
/
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