Potentially Much More At Stake In Michigan Than PEG

POTENTIALLY MUCH MORE AT STAKE IN MICHIGAN THAN PEG
[SOURCE: Tales from the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Compared to the primary battles in Michigan, the fight between Comcast and local governments about Comcast's decision to migrate Public Educational and Government (PEG) channels to digital seems like small potatoes. But potentially, the lawsuit filed by the cities of Dearborn and Meridian in local federal court could have huge impact on how cable operators carry broadcast television and even how they bundle video services with their voice and broadband offerings. For those just tuning in: Comcast has decided take advantage of Michigan's franchise reform law and forcibly migrate PEG channels to digital tier, which will require anyone who wants to see PEG channels to get a digital box and will put the PEG channels waaaay up the dial where channel surfers rarely tread. This has prompted angry protests by city officials, and even a reprimand from House Commerce Committee Chairman John Dingell (D-MI). While other cable operators have used such tactics in the past, Comcast appears to be the first operator to do this for an entire state at once. As a result, Dearborn and Meridian challenged Comcast's right to move the PEG channels without consent by the localities in federal court. But while this focus remains on PEG, it goes much further. In 1992, Congress mandated that cable operators must offer subscribers a “basic tier” that consists of the broadcast channels and PEG channels. Congress also prevented cable operators from bundling this “basic tier” with any other service or “buy through.” For reasons having to do with the Telecommunications Act of 1996, cable operators may no longer need to offer a “basic tier.” But if that's true, what does that mean for broadcasters?
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