Regulators weigh in at broadcasters convention

Kevin Rademacher

Wednesday, April 20, 2005 | 10:55 a.m.

There were plenty of questions for two top regulators during a Tuesday afternoon panel discussion at the National Association of Broadcasters convention.

Answers, however, were not as plentiful.

"We are dealing with so many issues right now it's extraordinary," said Jonathan Adelstein, a member of the Federal Communications Commission.

Those issues include the contentious conversion to digital television, the expansion of broadband and its implications on possible Internet-based television as well as major mergers that are pending in the telecommunications industry.

While this happens the FCC is facing a possible personality overhaul. Commissioner Kevin Martin has replaced now former FCC Chairman Michael Powell as the nation's top regulator. A search is now on for Martin's replacement, and Commissioner Kathleen Abernathy also has announced that she will step down.

Adelstein, however, did not show many cards when quizzed on the direction the FCC was likely to take on pressing issues.

Marsha MacBride, NAB's executive vice president for legal and regulatory affairs, sought opinions on the slow-moving conversion to digital television. Many broadcasters are currently transmitting both a digital and analog signal since many viewers do not have digital televisions or converter boxes.

Lawmakers want to take back the analog spectrum in order to turn it over to public safety agencies or re-sell it.

On Monday Rep. Joe Barton, R-Texas, told convention attendees that within a few weeks he plans to introduce a bill that would set Dec. 31, 2006, as the date of transition. He also said he hopes to establish a fund to provide subsidies for people who couldn't afford the $35 to $55 cost of a set-top box that would convert the digital signal to an analog television.

Aldestein said such a "hard date" could have many pitfalls since consumers without a converter box or digital television could see their television screens go dark.

"God help the politician that votes to make that thing go dark," he said, pointing to satellite television regulations several years ago that made viewers lose some channels. "We received more mail on satellite than we did on the impeachment."

He said a major stumbling block in the conversion is the ongoing sale of analog television without warning to consumers of the looming change.

"Sooner or later someone is going to be disappointed," Adelstein said.

On other market conditions, Michael Gallagher, administrator of U.S. Department of Commerce's National Telecommunications and Information Administration, said the expansion of Internet-based television service could be a turning point for consumers.

He said announcements that telecommunications companies such as Verizon will be attempting to take fiber-optic cables directly into homes will improve networks to the point that such service becomes a viable option.

"We see these signs in the market place that a number of things are moving forward rapidly," Gallagher said.

Adelstein agreed, adding that new service providers in the video service arena would "break the stranglehold" of cable operators.

"I think it's a real positive development," he said. "This is one of the greatest developments since satellite television."

He added, however, that there will be many hurdles along the way.

"There will be a lot of questions about how it happens," Adelstein said.

MacBride warned broadcasters that Internet-based programming could create headaches for broadcasters that have used localism as a cornerstone of their business models by casting aside the current system that provides for "geographic exclusivity."