[Congressional Record (Bound Edition), Volume 162 (2016), Part 6]
[Extensions of Remarks]
[Page 8758]
[From the U.S. Government Publishing Office, www.gpo.gov]




                FCC STB RULE IMPACTS ON SMALL PROVIDERS

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                           HON. KURT SCHRADER

                               of oregon

                    in the house of representatives

                         Tuesday, June 14, 2016

  Mr. SCHRADER. Mr. Speaker, I rise today to share my deep concern with 
the Federal Communications Commissions (FCC) proposed rules on set-top-
boxes. On May 5th, I along with Rep. Cramer (R-ND) and 58 of our House 
colleagues sent a letter to Chairman Wheeler at the FCC. That letter 
focused on the burdens these rules would impose on small cable 
operators.
  I've heard from several of my rural cable operators, and they are 
worried the FCC is failing to fully understand the impact these rules 
will have on small providers. Many of them will spend over a $1 million 
per system in order to comply with these rules, diverting resources 
that would otherwise be spent investing in broadband. Furthermore, it 
is estimated these costs could cause as many as 200 cable operators 
nationwide to go out of business or simply exit the video market place.
  We all support and want to encourage increased innovation and 
competition. In fact, many small operators are heavily investing in 
upgrading their existing networks to provide faster high-speed 
broadband. They also support innovative boxes from TiVo and apps that 
work on Roku boxes.
  The Small Business Administration Office of Advocacy agrees the 
proposal ``will be disproportionately and significantly burdensome'' 
for small cable operators. The SBA went on to say the ``FCC has not 
adequately attempted to quantify or describe the economic impact of its 
proposed rules'' nor did the FCC make ``any attempt to explain what 
kinds of costs small operators might incur in order to comply'' with 
the rule. Mr. Speaker, it is inconceivable to me that the FCC would 
propose new rules and seek to impose new regulations without fully 
understanding the economic impacts of their actions--especially when it 
comes to the many small rural providers in my district.
  Recognizing the burdens these new rules would have on small 
providers, consumer groups like Public Knowledge and innovative 
companies like TiVo support taking a different approach with small 
operators. I urge the FCC to reconsider imposing these rules on small 
operators because of the tremendous burden it would impose on them. If 
these new rules cause operators to go out of business or limit video 
services the Commission may end up hurting the very people they are 
seeking to help and that's the consumer.

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