McCain Introduces a la Carte Bill

MCCAIN INTRODUCES A LA CARTE BILL
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Cable operators that offer channels on a per-channel or a la carte basis would be exempt from local franchising and pay less in franchise fees to local governments, according to legislation introduced Wednesday by Sen. John McCain (R-AZ). The bill would not mandate a la carte, but it would reward cable operators that chose that route by eliminating state and local franchising obligations and by reducing franchise-fee payments from 5% of gross revenue to 3.7%. Sen McCain, in a prepared statement, said he hoped that the ability of cable operators to receive national franchises would spur the sale of channels a la carte, which, he said, consumers are clamoring to receive in lieu of large programming packages that include channels they don't want to buy or consider indecent for children to experience. Consumers Union, while endorsing “the spirit of the legislation,” declined to back McCain, arguing that the bill would go “too far in eliminating important public obligations of video-service providers to ensure nondiscriminatory delivery of cable service, diversity of local programming and essential consumer protections, including the timely and successful resolution of consumer complaints.” Sen McCain’s bill would encourage new cable entrants to build out entire communities, but would not mandate it. However, denial of service based on the income of subscribers would be prohibited. The bill also provides a la carte incentives both for cable operators and broadcasters that own cable networks.
http://www.multichannel.com/article/CA6341831.html?display=Breaking+News

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http://www.broadcastingcable.com/article/CA6341690?display=Breaking+News

* Commissioner Tate's Remarks to the KidVid Summit
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-265839A1.doc