Mr. Chairman and members of
the Subcommittee, I am John Lawson, President and CEO of the Association of
Public Television Stations (APTS). Our member stations-among the last of the
locally controlled media outlets left in this country-see digital conversion
as a life and death issue for public television. So, I appreciate this
opportunity to testify before you today.
I would like to update you on
the progress of our local stations in the digital transition, outline some of
our continuing challenges that this Subcommittee is in a position to help us
meet, and describe some of the exciting new services that digital television (DTV)
enables. These include education, high-speed services to Rural America, and
emergency communications to support homeland security.
Our
members, the local public television stations, respect and applaud the
leadership of the House Committee on Energy and Commerce in advancing the
digital transition. Our stations are bullish on DTV. They have plans to
introduce a new generation of digital services to our communities. And they
take the May 1, 2003 transmission deadline for public stations very seriously.
So I think you will find our stations are doing all they can to begin digital
service. We want to work with the Committee to continue to do our part to
stimulate the digital transition.
One benchmark of our
stations' commitment to the digital transition is the number of public
stations that have actually begun digital service. On May 1 of this year-the
deadline for all commercial stations to begin digital transition-public
television had almost as great a percentage of our stations on the air with a
digital signal as did our commercial colleagues. This is somewhat remarkable
given that our deadline was still one year away!
Today, 75 public stations are
on the air with DTV-21 percent of all public stations-and more are signing
on every week. If Congress steps in
with needed support, I am confident the great majority of public stations will
make their May 2003 deadline. However, without increased support, the future
of many public stations-both digital and analog-is in doubt.
I wish I could say that our
success to date in meeting the federal DTV mandate is largely due to federal
support. Unfortunately, that is not the case. So far, the progress of public
stations is mostly due to extraordinary support from states, universities,
foundations, corporations, local businesses, and individuals. This non-federal
support has totaled $771 million to date. Given that DTV conversion is a
federal mandate, the willingness of states and private donors to contribute on
the scale they have is even more impressive. It is a clear testament to the
continuing support that public broadcasting enjoys among the people of our
country.
Federal support, though
greatly needed and appreciated, has been slower in coming. Last year,
Congress, with the support of the Bush Administration, provided the first
federal funding specifically targeted to the digital transition. We applaud
Congress and President Bush for providing this much-needed assistance. With
$45 million appropriated last year to CPB for DTV conversion, plus grants over
the years from the existing Public Telecommunications Facilities Program (PTFP)
and including projected PTFP grants from FY 02 appropriations, federal
commitments to date total $158 million.
However, the total conversion
cost for public broadcasting is $1.7 billion. Federal funding so far is 17
percent of total conversion funds raised by our stations and less than 10
percent of public broadcasting's overall conversion cost. Most stations
still are far from home in securing the funds they need to complete the
digital transition.
Many of our stations already
on the air also are depending on additional federal funds. Many are operating
at low power and/or lack the technical means to originate local programming
and services. They need help in reaching full power to replicate their
existing analog coverage as mandated by the FCC and to provide the full range
of services that DTV enables.
In asking for increased
federal support, let me make clear that we never have asked Congress to fully
cover our digital conversion cost or even a majority of it. We have asked for
federal matching funds equal to approximately 40 percent of the conversion
cost, or $699 million. We still believe this is an appropriate request given
the historic role of Congress in supporting public broadcasting facilities and
the recent pledges by Congress to fund its own mandates. Our FY 03
appropriations requests include $137 million through CPB and $110 million
through PTFP.
These request are given
greater urgency by the severe budget shortfalls that have beset many states.
State legislatures, so far, have provided $476 million for the DTV transition
of public station in their states. In many cases today, any future capital
funds from states are predicated on a federal match. Most states that already
have provided DTV transition support have done so in expectation of a federal
match.
Mr. Chairman, this is the
fifth year that public broadcasting has asked the House Energy and Commerce
Committee to report out an authorization bill for digital funding. During that
time, public broadcasting has made some missteps in its practices and in its
relationship with the Committee. I regret that. Public broadcasting is a
highly decentralized and imperfect institution in the hands of fallible
individuals, myself included.
However, APTS represents the
local public stations, your
stations, and no other sector of the television industry is as committed to
the digital conversion as we are. And no other sector is as prepared to
harness the power of DTV to serve the people of this country, including your
constituents. We are prepared to do what we can to work with this Committee in
achieving our mutual goals for the digital transition.
In these last months before
public television's DTV deadline, we respectfully urge the House Energy and
Commerce Committee to move at least a "rifle shot" authorization for
continued DTV conversion funding through CPB. We hope you will see this
authorization as part and parcel of your decade-long efforts to make the DTV
transition successful. We are asking you to join governors, state
legislatures, foundations, educational institutions, businesses, and
individual families in a public-private partnership, a collaboration to bring
the benefits of public digital
television to your constituents.
Funding is crucial for us,
but it also is clear that a successful digital transition requires more than
federal funds. Other key players must do their part, as well. For starters, it
is imperative that public stations are guaranteed carriage of all their
digital broadcast signals on cable systems and direct broadcast satellite
(DBS) systems.
Our industry, for three
years, has been negotiating in good faith for voluntary carriage agreements
with the largest cable multi-system operators (MSOs). However,
to date, we only have two national agreements in hand. We signed the first
agreement with AOL Time Warner in 2000 and a similar agreement with Insight
Communications this spring. We thank AOL Time Warner and Insight for their
leadership, and we commend Michael Willner, President and CEO of
Insight Communications, for his personal efforts to reach a mutually
successful agreement with us. We also appreciate the good faith efforts of
Robert Sachs at the National Cable and Telecommunications Association to
facilitate MSO agreements with public television.
However, I would be less than
candid if I failed to express our surprise and disappointment at how difficult
it has been to reach agreements with more MSOs. We have been at this for three
years. We have a joint committee of members of the APTS and PBS boards,
volunteers who have collectively put in hundreds of hours of time seeking
these agreements. These are hours that could be used to run stations, produce
programming, or manage businesses and educational institutions that contribute
directly to our economy.
Despite this commitment of
resources, we have two national agreements after three years. These are
commendable, but the systems together reach just 21 percent of U.S. cable
households. This slow progress in reaching cable carriage agreements means
that we all still are a long way from achieving the goals for DTV receiver
penetration established by Congress in the Telecommunications Act of 1996.
Our inability to reach more
agreements is causing our stations to question whether pursuing voluntary,
negotiated carriage is a fruitful investment of their scarce resources;
whether, at some point, we must redirect our efforts toward securing carriage
through government intervention. Recently, the Supreme Court refused to
consider an appeal of the carriage provisions of the Satellite Home Viewer
Improvement Act. This is additional, strong evidence to us that mandatory
carriage is a constitutionally valid policy approach for public television
stations.
Looking ahead to a
post-transition environment, a major element of any agreement or mandate for
the carriage of public television stations is that MSOs and DBS operators
carry the full digital signal of each public station. The January 2001
decision by the FCC on the issue of "primary video" carriage requirements
was devastating for public television. As you know, a majority of
commissioners sitting then decided reluctantly, as a matter of statutory
interpretation, that cable operators would only be required to carry a single
programming stream from a public digital television station.
The former Commission's
decision creates a fundamental problem for public television. That's because
nearly all public stations are planning to multicast several channels
simultaneously, at least during the daytime. The current interpretation of
"primary video" makes these plans mute for serving cable subscribers.
WGVU-TV/Grand Rapids, MI is
one of the best examples in our system of the importance of multicasting and
full carriage of the digital signals of public stations. WGVU, licensed to
Grand Valley State University, plans to multicast perhaps six channels in
standard definition during daytime hours. SDTV services include a K-12
instructional channel, a "Ready to Learn" children's channel, a news and
business information service, and a workforce development channel.
Today, through its analog
service, WGVU-TV serves a K-12 student population of 205,000 in 99 public and
non-public West Michigan school districts. Nearly 11,000 teachers in member
school districts receive copies of WGVU's ITV Guidebook for use during the school year. Unfortunately, the
future digital K-12 service on WGVU-DT
may be excluded from cable carriage requirements if the current Commission
does not change the former Commission's position on "primary video."
The White House provides
another example of why the full digital signal of public stations should be
considered "primary video." Last April, as Pat Mitchell states in her
testimony, President and Mrs. Bush hosted PBS, children's television
producers, and local station representatives in a ceremony in the East Room of
the White House. As part of the launch of the President's "Early Reading
First" initiative, the President and First Lady honored public television
for our commitment to children's education. That was a special day, which,
by the way, we captured in high-definition video.
WGVU's DTV multicast plans
and the President's recognition highlight the question before the FCC as it
contemplates possible reconsideration of the earlier decision on primary
video: what is "primary" and what is "secondary" when it comes to
public television's multicast programming? Are daytime multicast channels
for children and their caregivers, or K-12 instructional programming, or
workforce training really "secondary" services? We think not, and we are
hopeful the current FCC will recognize that a broader definition of primary
video is entirely consistent with the language of the 1992 Cable Act; that
such a broader definition is, in fact, required as a matter of sound public
policy to enable stations to realize the full potential of digital technology.
If the Commission fails to embrace multicasting within its digital must carry
rules, we certainly will ask Congress to do so.
Beyond cable and satellite
carriage and interoperability, APTS strongly believes that reception of
digital television the old-fashioned way-through indoor or outdoor
antennas-is vital for the preservation of free, over-the-air television in
our country. Guaranteeing consumers the option of disconnecting the cable or
ending monthly satellite charges while still receiving quality television
programming is a powerful economic tool for the viewing public.
DTV reception in new sets is
not just a matter of economics; it is a matter of democratic principle as
well. With ever increasing media concentration, guaranteed access to locally
controlled public stations via the airwaves ensures that citizens can still
access a free flow of information. This free, non-commercial, wireless access
could be a last line of defense in the preservation of an open, decentralized,
and fully informed society.
For these reasons, we believe
it is imperative that set makers build DTV tuners into new sets, at least sets
over a certain screen size. The All Channel Receiver Act of 1962 mandated that
new sets had to be built to receive UHF channels, not just VHF channels 2-13.
This law was crucial to the success of public television stations, which were
assigned mostly UHF channels. Absent immediate voluntary commitments on the
part of the consumer electronics manufacturers, we need a similar, federal
policy for DTV tuners. We also need assurances-either
through voluntary commitments or legislative requirements-that new sets will
be "digital cable ready" for plug-and-play access.
Selling TV sets today, in the
middle of the digital transition, that can only receive analog signals is like
automakers selling cars, just before leaded gasoline was phased out, that
could only run on leaded gasoline. Fundamentally, it becomes a consumer
protection issue, another area of constant concern of the House Energy and
Commerce Committee.
Mr. Chairman, public
television appreciates the work of you, Chairman Tauzin, Mr. Dingell, Mr.
Markey, and your colleagues to bring industry representatives together in
roundtable discussions to resolve some of the thorny issues that are holding
up the DTV transition. We also applaud FCC Chairman Michael Powell for the
voluntary plan he released in early April. These efforts are steps in the
right direction. It is very important that these efforts succeed and that
cable and satellite operators and television set manufacturers take specific
steps to get the digital transition on track on the consumer side of the
equation.
However, if these voluntary
initiatives fail to produce results quickly, and if our own negotiations with
cable continue at their very slow pace, it will mean to us that the
marketplace has failed. At some point in the near future, if
the federal government really wants to achieve its own goals for the digital
transition, the federal government will have to step in. The digital
transition was started through government intervention in the marketplace, and
continued, limited government intervention may be necessary to ensure its
completion.
Public stations have been able to raise the
extraordinary levels of state and private support for the DTV transition
because of their vision of the use of this unique technology. Our stations
were the American pioneers in high-definition production. They are actively
planning multicast channels for education and other public services, as I've
outlined.
Public stations also are pioneering the use of
DTV for datacasting to PC's. Datacasting usually means the encapsulation of
Internet protocol (IP)-based content, such as streaming media and attached
files, that is delivered over-the-air through the DTV bitstream. I would like
to outline innovative applications for datacasting in three areas: education,
rural high-speed services, and emergency communications. Public digital
stations are beginning to move beyond the planning stage into actual
deployment.
DTV in general, and datacasting in particular,
hold enormous promise for improving education at all levels. In December 2000,
the bipartisan Web-based Education Commission completed its exhaustive
examination of the most effective uses of technology for teaching and
learning. The commission's first policy recommendation was that bandwidth be
made available for universal access to education and training at all levels.
Public digital
television can meet this goal. In fact, our stations have committed
one-quarter of their DTV bandwidth, 4.5 megabits per second on average, to
formal education. This is the downstream equivalent of three T-1 lines
available to learners everywhere. The value of this connectivity to the
nation's public schools alone equals $2.4 billion per year!
Perhaps the most promising local applications
for DTV delivery of education services are in datacasting to PC's and school
local area networks (LAN's). Though the consumer market for DTV receivers is
problematic, equipping schools and other institutional settings for DTV
reception holds great near-term promise. A single antenna on a school roof,
connected to a single DTV tuner card on a school server, can provide
high-speed datacasting to every PC in the school. This application is highly
suitable for employing a "walled garden" approach to provide safe,
IP-based educational content to classrooms.
Many public digital stations are currently
experimenting with DTV datacasting for education or plan to begin soon. These
include KCPT/Kansas City, MO; KERA/Dallas; KUHT/Houston; the Nebraska Network;
the New Jersey Network; South Carolina ETV; Twin Cities Public Television; UNC-TV;
and WBRA/Roanoke, VA, among others.
I am happy to report that higher education also
understands the potential of DTV. In April, the board of the National
Association of State Universities and Land Grant Colleges (NASULGC) voted
unanimously to form a working group with our association, APTS. We will work
to develop policy proposals and pilot projects around the delivery of
post-secondary education services through public digital
television. Our mutual goal is to extend the university through DTV,
especially for reaching underserved and nontraditional students.
Support for this new collaboration has come
from the presidents of Pennsylvania State University, the University of
Georgia, the University of New Orleans, the University of North Carolina, and
the South Dakota School of Mines and Technology. The University of Michigan
and the University of Wisconsin, an early organizer, also are directly
supporting the APTS-NASULGC working group, and I am sure many other
institutions will join them. In fact, NASULGC President Peter McGrath is
leading the effort to include the other higher education associations. I would
welcome the chance to more fully brief the Committee on our efforts at your
convenience.
Rural High-speed Services
Local public television
stations serving rural areas are uniquely positioned to assist their
communities in bridging the broadband access gap between rural and urban
areas. The resources of the digital spectrum offer a cost-effective solution
for the delivery of high-speed telecommunications services to rural
communities. Public television stations are committed to using their digital
bandwidth to bring advanced telecommunications services-Internet, video, or
audio-to rural areas long before wireline solutions are available. Once
converted to digital, public stations-combined with their network of
translators and repeaters-can provide not only HDTV and multicast SDTV
channels, but high-speed data for PC's as well.
The ability of DTV to provide
high-speed data wirelessly can provide the basis for a robust,
"asymmetric" network. It can effectively leverage the existing public
switched telephone network, built out to Rural America through decades of
universal service policies. That's because the greatest bandwidth is
typically needed for downstream delivery, which DTV can provide. The telephone
system can provide the "return path" for a complete, interactive network.
One of the nation's
pioneers in developing high-speed services to rural populations is KNME/Albuquerque.
Like the citizens of other western and mountainous states, New Mexicans rely
upon translators to extend the reach of television signals to them over
distances and terrain. KNME, licensed to the University of New Mexico, is
working with other telecommunications providers in the state to plan the
digital conversion of its translator network. Their goal is to deploy the
network as cost-effectively as possible and establish new digital services and
applications. KNME's engineers also are exploring options to make the
translator conversion as spectrum-efficient as possible, given the constraints
on new translator frequencies.
Unfortunately, rural
translator conversion has been the "step-child" of federal
telecommunications policy. And public television stations serving rural areas
tend to have the most difficult time raising the necessary digital conversion
funds. This funding divide threatens to deny rural Americans the many benefits
of DTV. In addition, if rural public television stations and their system of
translators and repeaters are not supported, as many as 12 million Americans
could be at risk for losing their only source of free, over-the-air
educational television-digital or analog.
That is why APTS's policy
agenda specifically addresses rural digital conversion challenges. We are
pursuing 1) federal matching funds for the digital transition of transmitters
and translators serving rural areas; and 2) federal policies and rules,
consistent with our recent petition filed with the FCC, that allow for the
transition of translators. Given the House Energy and Commerce Committee's
historic commitment to universal service, we look forward to working with you
to ensure access to the benefits of DTV for all Americans.
Well before the events of
last September, the public network in Kentucky, KET, was pioneering the use of
DTV datacasting for emergency communications. In initial trials with the
Weather Service, severe weather alerts were sent to PC's at first responder
locations equipped with DTV tuner cards and antennas. The trials, using
KET's digital transmitter in Louisville, proved highly successful. It became
clear that DTV can provide important new applications for homeland security.
KET, partnering with the Kentucky State Police and other first responders, is
now deploying its emergency communications system statewide.
Other public stations are
also pioneering the use of DTV for emergency communications. These include
KERA/Dallas, KUHT/Houston, KMOS/Warrensburg, MO, in partnership with the
Missouri National Guard, and WNYE/New York. Many more stations are in
discussions with local emergency response officials.
Datacasting through DTV has
many advantages for public safety services. Transmission of this data over the
digital broadcast signal decreases minutes of alert time and information lags
to just a few seconds. Use of the digital broadcast infrastructure can also
bypass the congestion of wireline and wireless services, including the
Internet, telephone, and cellular networks, which can plague communications in
emergency situations. And, because the datacasting is "addressable"
to certain computers, this system could be used to provide secure information
to select public safety agencies and their first responders in the field.
A recent report by the
National Research Council, released June 25, provides strong policy support
for leveraging the DTV transmission infrastructure for homeland security. The
report, titled, Making
the Nation Safer: The Role of Science and Technology in Countering Terrorism,
recommended, among other steps, that emergency response capabilities be
incorporated into existing infrastructure build outs. The following excerpt is
especially trenchant for the hearing today:
"In a crisis,
channels to provide information to the public will clearly be needed. Radio,
television, and often the Web provide such information today, but it is
usually generic and not necessarily helpful to people in specific areas or
with specific needs. Research is needed to identify appropriate
mechanisms-new technologies such as 'call by location' and zoned alert
broadcasts-for tailoring information to specific locations or individuals.
To be effective in interacting with individual users, ubiquitous and low-cost
access is required." p. 5-21
Datacasting through public
digital television is extremely well-suited to meet the NRCs requirements. It
is completely scalable in reaching the public through set-top boxes and PC's
equipped with low-cost tuner cards. It also can provide addressable and
locally-directed information through selective encryption of data. And it
meets the NRCs goal for the "dual use" of civilian infrastructure to
reduce costs.
Very
importantly, public television does not need additional spectrum to provide
emergency services-we can utilize what Congress has already given us. Public
television stations have already made significant progress toward the digital
conversion. We are prepared to make these datacasting solutions available to
the nation.
Last month, DTV emergency
capabilities were demonstrated on Capitol Hill by APTS, KET, and one of the
leading vendors in this area, NDS, with their team based in Newport Beach, CA.
Using the over-the-air bitstream of WETA-DT, simulated emergency alert
scenarios were conducted for members of Congress and congressional staff.
Other demonstrations and simulations are planned.
APTS has reached out to the
Committee to ensure you were aware of the contribution our system can make to
emergency preparedness. We hope you will factor in our capabilities as you
plan how to best assist the nation in this area. APTS stands ready to work
with Congress and the Administration to complete the digital conversion and
enable partnerships between public stations and local, state, regional and
national public safety offices.
Listed below are public
television's requests of Congress for a partial match of local DTV
conversion fundraising, as well as other policies to accelerate the digital
television transition.
-
A
"rifle shot" authorization for DTV funding from the House Energy and
Commerce Committee;
-
Digital
funding through CPB in FY 2003: $137 million;
-
Digital
funding through PTFP in FY 2003: $110 million;
-
Encourage
and, if necessary, require carriage of the full digital signals of public
stations by cable and satellite operators;
-
Encourage
the FCC to adopt a definition of "primary video" to include all
multicast streams of programming consistent with congressional
intent-legislate if necessary;
-
Encourage
and, if necessary, require that manufacturers include DTV tuners in new
television receivers.
This agenda, if implemented,
will ensure that public television stations deploy a new generation of digital
services for their communities. It also will give a much-needed shot-in-the
arm for the overall digital transition of the television broadcasting
industry.
The commitment of Congress
and other players to more fully support the DTV transition is a life and death
matter for public television and locally controlled media. If stations are
denied federal matching funds for the digital transmission build out, many
stations-especially those serving rural areas-simply will not make it. And
if neither integrated DTV tuners, nor cable, nor satellite provide the public
with ready access to the digital signals of public stations, our successes in
getting digital stations on the air will mean very little. Public television
will not survive for long if people can only receive it as a single-channel,
analog relic in a multi-channel, digital world.
With adequate support,
however, public stations are prepared to usher in a new generation of digital
services for their communities. We can make important new contributions to
education, rural economic development, and emergency services, as we have
seen. Public digital stations can ensure the survival of locally controlled
media in this era of media concentration. And we can help accelerate the
digital transition of the television industry, which will free up large blocks
of spectrum, stimulate new industries, and pay dividends for our country for
many years to come.
Thank you for this
opportunity to present testimony. I look forward to your questions.
