WASHINGTON, D.C. – During a Senate Commerce, Science, and
Transportation Committee hearing today on consumers, competition and
consolidation in the broadband and video market, Senator Kay Bailey Hutchison
(R-Texas), Ranking Member on the Committee, stressed the need to ensure media
mergers do not endanger consumers and competitors, and that government actions
do not impact innovation and investment.
“We must grapple with evolving technology between
traditionally distinct businesses like telecommunications and video program
distribution. Also, we must realize that
consumers’ demand and means of accessing content evolve and business models
shift in order to meet those preferences,” said Senator Hutchison.
“Congress and the regulators must tread very carefully and make sure that the
policies we discuss take account of the evolving nature of the marketplace, the
competition between providers, and the growing number of choices consumers have
to access content. We do not want to
intervene in private market negotiations in a way that disrupts what is going
on in the marketplace or leads to advantages for one stakeholder or
technology.”
Hutchison noted that Texas has fourteen Telemundo stations,
three of which Comcast will own and operate.
She stated that Texas also has 21 NBC stations, one of which
(Dallas/Fort Worth) will be owned and operated by Comcast and that consumers in
Texas want to know how programming and availability of all of these stations
will be impacted. Hutchison said that they particularly want to know whether
Comcast will continue to invest and develop programming for the stations, and that
NBC and Telemundo will remain available as free over-the-air stations.
Towards the end of the first panel, Federal Communications
Commission (FCC) Chairman Julius Genachowski was asked if the FCC was
considering “reclassifying broadband” services from information services to
telecom services, where they would be subject to antiquated common carrier
regulation. Chairman Genachowski answered that while the FCC is arguing before
the courts now that they have current legal authority to supervise the market,
they will look at other options should the courts rule against them.
“Chairman Genachowski was also asked today whether the
FCC would consider reclassifying broadband services under the antiquated common
carrier regulatory regime. Regrettably, the Chairman did not take the
opportunity to take a strong stand against imposing regulation onto broadband
investment and the Internet,” said Senator Hutchison. “It would be an enormous
mistake to reclassify vibrant new services under a regulatory regime that is as
relevant to the current marketplace as the horse drawn carriage is to modern
interstate travel. Burdensome new regulations would starve investment and
curtail innovation. I am disappointed to learn the FCC continues to think this
is worthy of consideration.”
You can watch Senator Hutchison’s statement here.