DirecTV and DISH Network want compensation for carrying local channels in all markets

Before January 1, 2010, Congress must reinstate SHVIA (the Satellite Home Viewer Improvement Act of 1999), the pro-competition law that lets satellite television companies carry local broadcast TV stations, so a rare opportunity has been presented to change the law in its period of review.

Congressman Bart Stupak (R-Michigan) proposed a bill this month that would ultimately require satellite TV companies to provide local TV signals in all of their markets. Stupak proposed H.R. 927, or the "Satellite Consumers' Right to Local Channels Act," because two of the thirty satellite markets that cannot receive local TV broadcasts are in his district. Satellite coverage in the U.S. is comprised of 210 market areas.

DISH Network's CEO Charles Ergen reportedly told the House communications and technology subcommittee this week that DISH would love to do that... provided it were given the "right incentives."

Ergen, and DirecTV Senior Vice President Bob Gabrelli made the case that H.R. 927 could actually be anticompetitive.

In Gabrelli's testimony yesterday, he said "Last week, legislation was introduced that would require satellite carriers to serve all remaining local markets by satellite within a year. Very respectfully, while expanding the reach of broadcast service might be a worthy goal, H.R. 927 is the wrong approach...[it] would unintentionally create real inequality."

"Broadcasters already make their signals available in every market over the air, for free. More people could surely receive those signals if offered over satellite. But more people could also receive those signals if broadcasters themselves invested in the infrastructure to increase their own footprint so everyone in the market could receive a free over the air signal. We suggest that it is inequitable, especially in this economy, to place the financial burden of expanding broadcast coverage on satellite subscribers alone."