HDTV on satellite alert

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Sat TV Scrutinizes New Legislation

The satellite TV industry turned its attention to the U.S. Senate Tuesday
with the introduction of the "Satellite Home Viewer Extension and Rural
Consumer Access to Digital Television Act" by Nevada Sen. John Ensign.

The bill, Ensign said, would require satellite TV providers to supply
customers that cannot receive an over-the-air digital signal from the four
major networks with a distant digital network signal by satellite.

Ensign also said his bill includes strong protections against abuse and
tough penalties to ensure that satellite TV providers comply "with a fair
and equitable process by which all Americans can take part in the digital
transition in a realistic timeframe." Local broadcasters that cannot turn on
a full-power digital signal due to circumstances beyond their control will
not be unfairly penalized under the legislation, the Republican said.

"My goal is to make sure consumers are not denied digital television based
on where they live or whether the digital conversion has been completed in
their area," Ensign said. "People outside major market areas, like those in
rural Nevada, should not be left behind in the digital television
revolution."

The bill also would mandate that satellite TV providers phase out the use of
two-dishes to deliver local channels, with the first group customers
impacted by the two-dish scheme seeing the proposed switch in six months.
The mandate takes aim at EchoStar and its use of two dishes to deliver a
number of local channels to a select set of markets.

Karen Watson, vice president of government relations at EchoStar, said the
company is concerned about the bill's proposed timetable to move locals to
one dish, but added, "The legislation is a step in the right direction to
help ensure more vibrant competition and services for consumers."

Watson also said, "We are encouraged by Sen. Ensign's desire to help speed
the digital transition by enabling satellite TV providers to offer a network
HDTV signal to consumers in those markets where a local broadcaster is not
meeting its legal requirement to provide a digital signal."

The bill's proposal to phase-in the transition to one dish in markets where
two dishes are used "is far better than the unworkable plan proposed in the
House legislation," Watson said. "But we remain concerned with the proposed
timetable in the Senate bill because six months is not enough time for
consumers to receive the equipment necessary to continue receiving local
service and not enough time to build a new satellite. We fear the initial
deadline will create major consumer inconvenience, confusion and
frustration."

Watson said EchoStar is urging Congress to provide a four-year period for
conversion to a one-dish solution "to ensure the necessary time to construct
and launch a new satellite in order to comply with any single dish mandate."

The Digital Transition Coalition, which is working on issues tied to the
switch to digital TV, commended Ensign for his bill. The legislation will
ensure that the transition to digital TV will take place more quickly, the
organization said.