[Congressional Record Volume 144, Number 38 (Monday, March 30, 1998)]
[Extensions of Remarks]
[Page E509]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E509]]



 THE MULTICHANNEL VIDEO COMPETITION AND CONSUMER PROTECTION ACT OF 1997

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                         HON. BRIAN P. BILBRAY

                             of california

                    in the house of representatives

                         Monday, March 30, 1998

  Mr. BILBRAY. Mr. Speaker, I rise today to lend my support to H.R. 
2921, the Multichannel Video Competition and Consumer Protection Act of 
1997. This Act, which I cosponsored earlier this year, will allow the 
Federal Communications Commission (FCC) to conduct an inquiry into 
competition in the multichannel video market. I agree with my 
colleague, Representative Billy Tauzin, whose goal with respect to 
video markets, is to create a policy environment that encourages 
vigorous competition. This will provide consumers with a choice of 
providers, new services, and competitive rates. I would like to take 
this opportunity to commend Representative Tauzin for his leadership on 
this issue, and I look forward to working with him in the future to 
enact this bill into law.
  A recent action by the Library of Congress flies in the face of these 
goals. The Library of Congress has upheld a decision of the Copyright 
Arbitration Rate Panel, which dramatically increases the price that 
Director-To-Home (DTH) satellite television companies pay in copyright 
fees. At the moment cable operators pay an average of 9.7 cents per 
subscriber for superstations, and 2.5 cents for network stations. DTH 
companies, on the other hand, have been paying an average of 27 cents 
per subscriber for both signals since the Library of Congress decision 
came into effect on January 1 1998. At these rates, the satellite 
service providers will be paying 275 percent and 900 percent more 
respectively for the very same signals.
  In the short term, this has a detrimental impact on America's 7.5 
million satellite subscribers. For example, in my home state of 
California, these costs have already been passed on to consumers 
through DTH subscription increases. Strangely enough, cable subscribers 
could suffer too. In the year between July 1996 and July 1997, we 
witnessed cable rates increase at nearly 4 times the rate of inflation. 
In order to remedy this situation we must listen to some sensible 
advice from the FCC. They have told us that the most effective 
regulator of cable rates is more robust competition from satellite 
television services.
  Let's create an environment in which the satellite television 
industry can compete, not one where their competitiveness is reduced. I 
urge my colleagues to cosponsor this legislation, and help create a 
better multichannel video market for consumers.

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