[Congressional Record Volume 148, Number 127 (Wednesday, October 2, 2002)]
[Extensions of Remarks]
[Pages E1724-E1725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    TELEVISION CONSUMER FREEDOM ACT

                                 ______
                                 

                             HON. RON PAUL

                                of texas

                    in the house of representatives

                        Tuesday, October 1, 2002

  Mr. PAUL. Mr. Speaker, I rise to introduce the Television Consumer 
Freedom Act, legislation repealing regulations that interfere with a 
consumer’s ability to avail themselves of desired television 
programming.
  My office has received numerous calls from rural satellite and cable 
TV customers who are upset because their satellite or cable service 
providers have informed them that they will lose access to certain 
network television programs and/or cable networks. The reason my 
constituents cannot obtain their desired satellite and cable services 
is that the satellite and cable “marketplace” is fraught 
with government interventionism at every level. Cable companies have 
historically been granted franchises of monopoly privilege at the local 
level. Government has previously intervened to invalidate 
“exclusive dealings” contracts between private parties, 
namely cable service providers and program creators, and has most 
recently assumed the role of price setter. The Library of Congress has 
even been delegated the power to determine prices at which program 
suppliers must make their programs available to cable and satellite 
programming service providers.
  It is, of course, within the constitutionally enumerated powers of 
Congress to “promote the progress of science and useful arts by 
securing for limited times to authors and inventors the exclusive right 
to their respective writings and discoveries.” However, operating 
a clearing-house for the subsequent transfer of such property rights in 
the name of setting a just price or “instilling 
competition” via “central planning” seems not to be 
an economically prudent nor justifiable action under this enumerated 
power. This process is one best reserved to the competitive 
marketplace.
  Government's attempt to set the just price for satellite programming 
outside the market mechanism is inherently impossible. This has 
resulted in competition among service providers for government 
privilege rather than the consumer benefits inherent to the genuine 
free market. Currently, while federal regulation does leave satellite 
programming service providers free to bypass the governmental royalty 
distribution scheme and negotiate directly with owners of programming 
for program rights, there is a federal prohibition on satellite service 
providers making local network affiliates’ programs available to 
nearby satellite subscribers. This bill repeals that federal 
prohibition and allows satellite service providers to more freely 
negotiate with program owners for programming desired by satellite 
service subscribers. Technology is now available by which viewers will 
be able to view network programs via satellite as presented by their 
nearest network affiliate. This market-generated technology will remove 
a major stumbling block to negotiations that should currently be taking 
place between network program owners and satellite service providers.
  This bill also repeals federal laws that force cable companies to 
carry certain programs. These federal “must carry” mandates 
deny

[[Page E1725]]

cable companies the ability to provide the programming desired by their 
customers. Decisions about what programming to carry on a cable system 
should be made by consumers, not federal bureaucrats.
  Mr. Speaker, the federal government should not interfere with a 
consumer's ability to purchase services such as satellite or cable 
television in the free market. I therefore urge my colleagues to take a 
step toward restoring freedom by cosponsoring my Television Consumer 
Freedom Act.

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