[Congressional Record (Bound Edition), Volume 148 (2002), Part 14]
[Extensions of Remarks]
[Page 18977]
[From the U.S. 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 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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