Statement of Administration Policy: S. 1880 - Cable Television Consumer Protection Act of 1990

(Senate)
(Danforth (R) MO and 15 others)

The Administration strongly opposes reregulation of the cable television industry. If S. 1880 were presented to the President in its current form, his senior advisers would recommend a veto.

The Administration opposes S. 1880 because it imposes a new regime of Federal regulation over the cable industry beyond that established in the Cable Act of 1984. Specifically, the Administration opposes provisions that would establish additional Federal regulation over cable rates. These provisions would hamper the development of new products and services for cable subscribers and slow the expansion of cable service to areas not now served.

The Administration also opposes provisions that restrict the discretion of cable programmers in distributing their product. These provisions ignore the reality that exclusive distribution arrangements are common in the entertainment industry and encourage the risk-taking needed to develop new programming. Requiring cable operators to make their programming available to competing distributors would establish a different standard for cable than exists for broadcast.

The Administration opposes section 8, which limits the number of channels on which a cable operator can carry its own programs. This provision raises most serious constitutional questions. Section 8 would also require limits on the number of subscribers a cable operator may serve nationwide. This provision is objectionable because current antitrust laws are adequate.

Section 15 of S. 1880 would require cable operators to carry the signals of certain television stations. This would be required regardless of whether the cable operator believes that the stations are appropriate for inclusion in its package of services, and regardless of whether such inclusion reflects the desires and tastes of cable subscribers. The Administration believes that "must carry" requirements would raise most serious constitutional questions under the First Amendment by infringing upon the editorial discretion exercised by cable operators in their selection of programming.

The Administration continues to believe that competition, rather than regulation, creates both the most substantial benefits for consumers and the greatest opportunities for American industry.

Consistent with this principle, the Administration supports removing barriers to entry by new competitors into the video services marketplace. Congress should consider removing the current legislative prohibitions on telephone company entry found in the 1984 Cable Act as an alternative to instituting a burdensome and unnecessary regulatory regime.