By Shirley Bloomfield
Published first on The Hill's Congress Blog
In December 2014, members of House Energy & Commerce Committee released the sixth white paper as part of its ongoing “deep dive” into a potential updates of the Communications Act of 1934 and the Telecommunications Act of 1996. This latest white paper inquired specifically about ways to improve video polices. For the 900 small, rate-of-return rural telecommunications providers NTCA–The Rural Broadband Association represents, this query is especially pressing as more of our members than ever before are in the video business—and more challenged than ever to stay in it.
In fact, a recent member survey we conducted found that 77 percent of respondents are providing video service to their customers. Eight percent that are not currently offering video service plan to do so by year-end 2016. At the same time, the challenges of offering video services are many with 99 percent of survey respondents citing access to reasonably priced programming as a chief concern.
The ability of providers of all kinds—but especially small, rural providers—to obtain video content at affordable rates and under reasonable terms and conditions will not only improve competition in the video services market but will also spur broadband investment and adoption in rural service areas. In its response January 23 to the House committee’s white paper, NTCA offers several simple, common sense updates to the laws that govern the video services marketplace. These updates are essential given the significant changes in video markets over the past 20-plus years since the laws were last updated.
First, we think giving video providers the freedom to purchase broadcast content from neighboring markets would inject much-needed competitive market forces into a tired and protectionist retransmission consent regime, thereby enabling rural providers to pass cost-savings on to consumers. NTCA also supports the creation of a standstill provision that would preserve consumers’ access to a broadcast signal while negotiations or dispute resolution proceedings are underway.
A rule that would allow small and mid-size providers to request the same prices and conditions from any of the existing retransmission consent agreements that a broadcast station has entered into with other providers would also help to level the playing field among negotiating parties and reduce a barrier to affordable video services that is imposed by discriminatory pricing.
Transparency is a real concern too. Well-functioning markets depend upon buyers and sellers making informed decisions among a variety of options. But today, there is little to no transparency as broadcasters demand mandatory nondisclosure provisions to keep prices for their content hidden from competitors and consumers. Broadcasters should be prohibited from using such provisions to frustrate the operations of the marketplace.
Finally, and perhaps most importantly, the revised legislation should put control back in consumers’ hands by eliminating forced tying and tiering by all content providers. These practices unnecessarily increase rural providers’ and consumers’ costs and make it nearly impossible for providers to offer tailored, affordable service packages.
NTCA’s recommendations to the committee would promote competition among video service providers in rural areas and would grant consumers access to the content they desire at more affordable rates. NTCA members are proven solutions providers when it comes to developing and sustaining a mix of attractive and affordable services for the consumers they serve. We know video is a critical piece of that puzzle. Now we look to Congress as it proceeds with this important legislative update, and we encourage policymakers to ensure that any statutory update regarding video policy upholds the core principles of universal service, consumer protection and competition.
Bloomfield is chief executive officer of NTCA–The Rural Broadband Association.