Tune In To Truth Of Telecom Bill
Last week the U.S. Congress passed new telecommunications legislation that promises to dramatically transform television, telephone and computer networks. In short, the bill will reshape the communications industry.
But exactly who will benefit from this reshaping?
According to the bill’s most ardent proponents, the new legislation will be a godsend to every American.
“For the first time ever, Americans will be given choices,” said U.S. Rep. Thomas Bliley Jr., R-Va., the bill’s main sponsor.
The bill’s supporters promise that the revamped telecommunications law will lower cable and telephone rates, improve services, bring innovative products and services to the market and create thousands of new jobs.
However, several industry analysts have said that it’s just as likely that the bill will increase the cost of cable and telephone services for many consumers.
Already, in anticipation of the bill’s passage, AT&T split itself into three separate companies and announced plans to cut 40,000 jobs in order to be more competitive.
Frankly, the only thing that I can say for certain that the American taxpayer received under the 280-page telecommunications bill is the V-chip.
The bill requires the makers of television sets to include the V-chip feature, which allows viewers to block access to broadcast material rated offensively violent or sexual.
What the bill offers big business, particularly the major broadcasters and telephone companies, is mind-boggling moneymaking potential.
The bill does away with most cross-ownership provisions, affecting telephone, cable TV, mobile phone, on-line computer connection and other services. Where before a company could only own one or maybe two of these services, there is no limitation.
The big four networks are smiling all the way to the bank because the bill raises from 25 percent to 35 percent the limit on how many homes they can reach with their services, greatly increasing the number of radio and TV stations a single company can own.
In addition, the bill allows broadcasters to own cable television stations, something that had previously been prohibited.
The telephone market has been thrown wide open with local phone carriers being given the green light to go after long-distance service, as well as other communications services.
The passage of the new telecommunications bill also paves the way for perhaps the biggest corporate welfare package this nation has ever known.
The nation’s broadcasters have been fighting any suggestion that the digital transmission portion of the broadcast spectrum be auctioned off to the highest bidder. It has been estimated that these new channels, which are owned by you and me, the American taxpayers, are worth somewhere in the neighborhood of $70 billion.
A few years ago when the Federal Communications Commission auctioned off a far less valuable portion of the spectrum, a bandwidth used to send faxes and mobile phone communications, more than $10 billion was generated for the U.S. Treasury.
The portion of the telecommunications bill that included the spectrum giveaway was deleted from the final version, but will be revisited later. It probably will come after the budget debate when the loss of $70 billion by the federal government may not raise as many eyebrows.
If you are wondering why in these financially tough times Congress seems determined to turn its back on $70 billion, consider the fact that during the last 10 years the communications industry has donated more than $50 million to congressional candidates and political parties, according to Common Cause, a private lobbying group.
The free use of the digital broadcast spectrum is tantamount to you and me paying for a sumptuous banquet and being stopped at the door. As we stand on the outside looking in, the fat cats representing companies like AT&T, Time Warner, Westinghouse Electric and NBC stuff themselves.
All you and I get from this feast we paid for is a bowl of chips, V-chips to be exact, handed to us out the door.
Of course, we are expected to be grateful.
xxxx