@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ FOR IMMEDIATE RELEASE APRIL 2, 1996 PUBLIC INTEREST GROUPS COMMENT ON "OPEN VIDEO SYSTEMS;" ALLIANCE FOR COMMUNITY MEDIA LAUNCHES GRASSROOTS CAMPAIGN TO PREVENT "CABLE-LITE" Washington, D.C. -- In a regulatory filing with the FCC, a coalition of public interest and consumer-advocacy organizations yesterday raised concerns that the new "open video systems" concept, created by the 1996 Telecommunications Act, would become "cable-lite," providing the Regional Bell Operating Companies ("RBOCs") with a way of getting into the video programming business without having to comply with any of the public interests protections remaining in the 1984 Cable Act. The FCC's rulemaking on "Open Video Systems" ("OVS") will determine the structure of the industry that will provide the primary regulatory alternative to traditional cable television service. The major difference between OVS and cable systems is that OVS may be required to allot up to two-thirds of its capacity to programmers unaffiliated with the OVS provider under certain circumstances. The provisions relieve OVS providers from such consumer protections as rate regulation, maximum rates for access, local government oversight for quality of service, consumer complaint mechanisms, and legal remedies. OVS is not a new technology, but an alternate regulatory regime governing present technology. The provisions expressly contemplate that OVS may be offered over existing telephone lines , coaxial cable, or wireless cable television systems. The coalition filing comments in this proceeding includes the Alliance for Community Media, the Alliance for Communications Democracy, the Consumer Federation of America, the Consumer Project on Technology (a Public Citizen related organization), and People for the American Way. Legal assistance was also provided by the Media Access Project and Georgetown University Law Center's Institute for Public Representation. In addition to the named members, the Coalition also represents the views of a number of groups with concerns about the expressive and access rights of the public in the information age. While avoiding much price and consumer protection regulation, however, OVS providers will still be required to provide public, educational and governmental ("PEG") access to schools, churches, non-profit organizations and political candidates in much the same way that it is currently provided on cable systems. The FCC is required by law to implement PEG access on OVS systems in such a way as to burden OVS providers neither more nor less than cable operators. "The PEG requirement for OVS systems is one very bright star in a very dark sky," commented Barry Forbes, Executive Director of the Alliance for Community Media. "Our interpretation of the provision requires OVS providers to duplicate the cable PEG access system on their OVS systems. This means that they will be required to provide PEG access with capacity, facilities, equipment, services and financial support wherever the cable operator is required to do the same. This is one of the places in the law where Congress' intention is clear. We hope that the Federal Communications Commission will see it the same way. There is so much ambiguous language in the OVS provisions -- it would be a shame if the Commission diluted the effect of the one place in the law where Congress unequivocally defended the public interest." "In the best case scenario, OVS could offer the tremendous advantage of meaningful access to a video transmission platform to a broad range of businesses, non-profit organizations and individuals that are currently excluded," stated Forbes. "It's even plausible that trading some regulatory protections for a video system that is truly open to all might be considered a fair exchange. But the law is not specific about how 'open' the system must be. The OVS provisions were drafted by a elite group of RBOC and cable industry lobbyists behind closed doors -- with absolutely with no input by the public. So it's certainly not surprising that there is so much room for interpretation -- and misinterpretation." "OVS is not a new technological breakthrough," continued Forbes. "It's nothing more than a legislative sleight of hand -- and a convenient excuse for gutting what little public protection was established in the 1984 Cable Act. Any RBOC which owns a cable system could declare all its cable systems to be OVS -- and they would not have to make any technological changes at all! If the FCC does not step up to the plate and make sure that the system opens up to unaffiliated programmers, the RBOCs would not have to change its services one iota -- although consumers' bills could immediately rise as high as the RBOCs' cable monopoly position would allow it. Both the cable and telephone industries are enormously profitable, so its rather difficult for me to see where they are being broken by cable regulatory burdens." OVS is the regulatory successor to so-called "video dialtone" systems, which the FCC had first begun discussing in the late 1980's as a method to open up the editorial bottleneck of cable companies and allow telephone companies into the business of providing video programming services which were otherwise forbidden by law. Proposed "video dialtone" provisions in telecommunications bills were changed in closed-door conference committee meetings to "open video systems." Once signed by the conference committee, the OVS provisions, along with the rest of the Telecommunications bill, was considered by both houses and passed in less than forty-eight hours. "We are not going to allow the Commission to completely reshape the television industry in this way without involving the public, " stated Forbes. "The Alliance is leading a grass-roots campaign to get the people we work with -- non-profits, schools, local governments, charities, Little Leagues, Kiwanis Clubs, Chambers of Commerce -- involved in pushing for an OVS regulatory regime that truly protects the public. We hope that that the Commission will be able to hear the voices of people affected by such a sweeping change." The Alliance for Community Media is a national, non-profit membership organization committed to assuring everyone's access to electronic media. The Alliance disseminates public information, advances a positive legislative and regulatory environment, and supports local organizing. Founded in 1976, the Alliance represents the interests of an estimated 1.5 million community, religious and charitable groups and individuals who use public, educational, and government (PEG) access cable TV channels and facilities to speak to their communities. The Alliance also serves the interests of over 950 PEG access organizations and local origination cable services throughout the country. The Alliance's 1996 International Conference and Trade Show will be held in the Washington DC area on July 17 - 20, 1996, will feature FCC Cable Services Bureau Chief Meredith Jones as one keynote speaker, and is expected to attract over 800 participants. The conference will include the Awards Ceremony for the 1996 Hometown Video Festival, the largest and longest-running video competition which showcases community media. -- 30 -- _________________________________________________ Alliance for Community Media 666 11th Street, NW, Suite 806, Washington, DC 20001-4542 Voice: (202) 393-2650 Fax: (202) 393-2653 "Ensuring everyone's access to electronic media since 1976." Barry Forbes, Executive Director (Ext. 13) Kelly Matthews, Member Services (Ext. 17) Jeffrey Hops, Government Relations (Ext. 14) Wanda Sheridan, Conference & Video Festival (Ext. 12) _________________________________________________ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ ~ CYBER-RIGHTS ~ ~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~-~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=- Visit The Cyber-Rights Library, accessible via FTP or WWW at: ftp://www.cpsr.org/cpsr/nii/cyber-rights/Library/ http://www.cpsr.org/cpsr/nii/cyber-rights/Library/ You are encouraged to forward and cross-post list traffic, pursuant to any contained copyright & redistribution restrictions. ~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-=~-~=-=-=-=-=-=-=-=~=-=-=-=-=-=-=-=-