Satellite Operators Pledge Not To Exploit Analog Loophole

Satellite TV and distant-signal operators to renewed their pledge not to take advantage of a carriage loophole created by the DTV transition. That came Tuesday at a hearing on a draft bill to reauthorize the Satellite Home Viewer Extension and Reauthorization Act, which allows satellite companies to import distant network affiliate signals into local markets under certain circumstances. Because the current bill defines an "unserved" household that qualifies for a distant signal in terms of an analog definition that is no longer relevant, technically, every household in the country is in a so-called "white area" and could get a distant signal. That would moot program exclusivity and wreak havoc with the broadcast business model. EchoStar and DISH Network have a proposal on the table to share the costs of delivering local into local TV station signals to all 212 markets. Currently DirecTV is in about 150, and DISH just north of 180, but that leaves at least 30 markets without local TV station service on their satellite provider. Subcommittee Chairman Rick Boucher (D-VA) estimated that the cost would be about $30 million and asked National Association of Broadcasters TV Board Chairman Paul Karpowicz of Meredith Broadcasting, one of the hearing witnesses, whether that was something the broadcasters would entertain. He testified that NAB had a working group of engineers and board members studying the proposal, but said it did not yet have enough information on the real costs of the proposal to "determine our level of participation."