LAS VEGAS, Nev. -- Sen. Barry Goldwater, R-Ariz., urged cable television operators Tuesday to support a rewrite of the archaic Communications Act in an attempt to end the industry's constant court battles.
'The Communications Act of 1934 is simply no longer adequate as a statement of national policy,' Goldwater told the National Cable Television Association convention.
He said the outdated law permitted courts to make policy over cable television without adequate consideration of the social and economic implications for the public.
Goldwater addressed a luncheon meeting of the organization's national convention via satellite from Washington. He did not appear in person because of a Senate session on the Falkland Islands crisis.
'The law was drafted when radio broadcasting was the sole source of entertainment programming and the crank telephone and telegraph key were our major means for inter-city communications.'
Some provisions of the law actually impede the delivery of new and lower cost goods and services to the consumer, said Goldwater, chairman of the Senate Commerce Subcommittee on Communications.
'If no changes are made, we will be faced with a continuation of the long, disruptive, regulatory and court challenges that have been characteristic of the past 15 years.'
Goldwater said his bill (S.2172) outlines the legitimate concerns of the federal government, state and local governments and 'those matters that no governmental agency ... should be allowed to regulate.'
He said his proposal would give the Federal Communications Commission the authority to prohibit foreign ownership of cable systems if reciprocal rights were not granted to U.S. firms. He said such a provision would not be retroactive.
The communications law rewrite would permit municipal ownership of cable systems if acquired at fair market value, but only if there is 'no control over programming', Goldwater said.
In addition, telephone companies would not be allowed to provide cable service in their own operating areas unless the FCC ruled additional media diversity and competition would result.
Goldwater said the bill provided that cable operators with 20 or more channels set aside 10 percent for public, educational and government programmers and an additional 10 percent for leased pay television channels.
'Now I know most of you do not like this idea -- neither do I,' Goldwater told the cable operators. 'But it is my firm belief that the cable industry must face up to this challenge and accept this obligation in return for the future opportunities which Senate Bill 2172 promises your industry.'
He said the bill will insure that cable operators are free to set rates for enhanced and pay television services and the FCC shall establish reasonable franchise fee ceilings paid by cable operators.
