CONGRESSIONAL LEADERS URGE POWELL TO IMPLEMENT DIGITAL SOLUTION

Sen. Hollings (D-S.C.) and Reps. Tauzin (R-La.) and Dingell (D-Mich.) told FCC Chmn. Powell in letters that they believed FCC had authority to implement broadcast flag solution to problem of digital content piracy, irrespective of actions by Congress, and urged him to begin work on such solution “immediately.” Hollings, chmn. of Senate Commerce Committee, wrote Fri. that Commission had authority under Title I of Communications Act and its general public interest authority to implement solution “for the benefit of the digital TV transition and consumers across America.” On broadcast flag, he said, “the FCC may act absent legislation.” However, Hollings held out threat that Senate might jump in if broadcast, cable, satellite, motion picture and CE industries stopped cooperating. “While we do not want to have to legislate in this area, the industries must know that the government stands ready to ratify consensus agreements, and to step in if no agreements can be reached after a reasonable time is given for negotiations to move forward,” he wrote.

Tauzin has directed his staff to begin drafting legislation to resolve issues (CD July 16 p3) after Broadcast Protection Discussion Group -- composed of representatives of all industries involved -- stalled over variety of issues, despite issuing consensus report on basic technology necessary to implement broadcast flag. Tauzin and Dingell, chmn. and ranking minority member of House Commerce Committee, respectively, in co-signed letter Fri. told Powell that they regretted that industry talks didn’t resolve all matters to move DTV transition along. “While we had hoped that the industry players would achieve a meeting of the minds on these critical issues voluntarily, unfortunately no comprehensive agreement has been obtained to date,” they wrote. They said congressional staff was working on resolving remaining key issues: Over-air DTV tuners, DTV cable carriage limitations, DTV set-top box compatibility, pass-through of high-definition (HD) programming by broadcast network affiliates, content protections for digital video programming. But they emphasized that their legislative agenda didn’t relieve Commission of its obligations to work on its own to resolve issues, in consultation with House committee. Commission “has ample authority to address these issues independently of the Congress,” they wrote.

Tauzin and Dingell also said Commission had several pending proceedings dealing with core issues, including extent to which digital TV sets must be capable of receiving over-air broadcasts of HDTV, dual must-carry, multicast must- carry requirements, ensuring equipment functionality and interoperability of all digital cable systems. “We strongly urge the agency to complete its work in these open proceedings without delay,” they wrote.

Powell declined to comment through spokesman. MPAA Pres. Jack Valenti in statement praised Hollings, Tauzin and Dingell for their initiative, saying: “Their leadership as well as Chmn. Powell’s will make sure that consumers will continue to receive high-quality free over-the-air programming in the digital world.” Similarly, NAB Pres. Edward Fritts said he welcomed congressional leaders’ efforts: “As broadcasters transition to digital television, it is vitally important for consumers to receive the best programming available from free, over-the-air stations and networks. Adoption of this ‘broadcast flag’ provision will help expedite this transition.” NCTA spokesman said Assn. would “continue to work with both the FCC and Congress to highlight the [cable] industry’s commitments to the DTV transition, as well as the many marketplace-based efforts.” As examples, he pointed to recent HDTV launches by Comcast, Charter and Cox, as well as Discovery Communications’ HD Theatre. CEA spokesman said Assn. “certainly disagrees” with idea that FCC had statutory authority to force mandatory DTV tuners and said Commission should concentrate on area where CEA believed it did have statutory authority, on cable compatibility issues. He applauded Hollings in particular for focusing on cable issues.

Meanwhile, sources say FCC staff already has been at work on drafting possible rulemaking as follow-up to Powell plan -- action that began before commissioners received Tauzin-Dingell letter. It’s understood proposal will seek comments on several DTV-related issues, including mandatory placement of digital tuners in all TV sets by manufacturers, as well as cable-related matters. We're told Commission believes that 1963 law requiring UHF tuners in TV sets above certain size gives it authority to also require digital tuners. “I've heard a lot of talk about it,” said broadcasting official who has been involved in digital transition from very beginning. “It’s the least they [commissioners] should do.”