“Every fool will be meddling”
Proverbs
Four weeks ago, the first provisions of the 1992 Cable Television Consumer Protection and Competition Act went into effect. This latest Congressional intrusion into the private sector is another sad example of government enacting legislation, without having any inkling of its long-term impact or cost.
Its supporters contended the bill was essential to control cable companies who, they argue, had escalated fees at a pace far exceeding the rate of inflation. The cry went out, let government cure the problem!
Forgotten is the reality the cable mess began when the beltway gang commandeered control over the industry and granted local governments permission to issue monopoly licenses to selected cable companies within their communities. Competition was discouraged if not slain.
Members of Congress, rather than becoming statesmanlike leaders, guiding the public in using the tools of our free market system, responded in the only way they knew … passing a bill. These politicians seemed incapable of comprehending the public, not government, held the ultimate weapon, its ability to simply cancel their cable service.
Had they convinced people by doing without cable-only programming for a limited period, local cable companies would quickly get the message and be forced to reduce rates and improve service … or be forced out of business. Like any successful boycott, it might have taken time and perhaps caused minor inconveniences. But, the results would have been certain and accomplished more with fewer regulations, less bureaucracy and no increased demand for taxpayer dollars.
Then again, “feel-good” legislation, not capitalist economic ideals or hard-won market results produce votes come election time.
The bill’s chief sponsor, a career politician from Massachusetts, Representative Edward Markey, gloated, “Nobody’s bill should be going up unless they get more services.“
Then … surprise! Consumer complaints began filtering in to the FCC almost immediately. While some bills dropped ever so slightly, those of many others increased as the cable companies sought to ensure the impact of the Act and its 500 pages of related FCC regulations were revenue-neutral. While the statists extol on how such actions justify the passage of the Act, the truth remains, such actions are at the heart of our profit-driven free enterprise system.
Meantime, another provision of Congressman Markey’s ill-conceived legislation is about to provide an unpleasant surprise for may cable customers. On October 6th, the retransmission consent section of the bill goes into effect.
Under its provisions, broadcast stations will have two options. They may continue to provide local cable companies with their signal at no charge, and thus no cost to the public. Or, they may choose to charge the cable companies to carry their programming, which cost may be passed on to consumers. Many cable companies are balking at having to pay for these channels.
With the deadline for implementation of this provision just ten days away, many cable operators remain at impasse in their negotiations with one or more regional broadcast stations. Accordingly, it’s likely many such channels, historically seen by local viewers will disappear from the screens of cable subscribers, as they are simply dropped by the cable companies … as may happen to many Boston-based broadcast stations.
For some, the absence of the never-ending menu of soaps, sitcoms and inane network programming will be a blessing. From the average American, however, spending 6-7 hours a day parked before their tube, there will be a howl heard all the way to Washington and a clamor for even more government regulation.
Perhaps this time Congress will do the right thing … and do nothing! Naw, it’ll never happen.
Meantime, technology moves forward. Two weeks ago, NASA launched its ACTS, the first in a new generation of space-based communications satellites. Already, several private companies are planning to launch highly-sophisticated commercial versions of the ACTS, thereby possibly leapfrogging many of today’s ground-based cable and fiber-optic networks. Within a few years inexpensive, two-foot diameter “dishes” may provide seamless, nationwide access to hundreds of stations.
As this direct satellite industry matures, Congress needs to keep its hands off … letting companies compete in the marketplace, with the rewards going to those enterprises who can provide diverse television and related services at the competitive prices.
