Satellite TV companies told: Carry one local station, carry all

By The Associated Press

12.10.01

Printer-friendly page

RICHMOND, Va. — Local television stations won a legal battle late last week after a federal appeals court upheld a decision to require satellite television providers to carry all local stations if they choose to air any in a particular market.

Barring an appeal to the U.S. Supreme Court, the decision by the three-judge panel of the 4th U.S. Circuit Court of Appeals in Richmond gives local stations a better chance of being broadcast on direct-to-home satellite services like DirecTV or EchoStar.

Previously, satellite companies could select which local stations to air. The appeals panel decision makes it mandatory effective New Year's Day that if the satellite companies run one, they must run all local stations in a particular market. The companies still can opt not to run any.

In September 2000, the Satellite Broadcasting and Communications Association, EchoStar and DirecTV filed a lawsuit against the Federal Communications Commission, arguing that its "must-carry" rules violated the First Amendment.

The companies argued that having to carry all local stations in a market takes up so much of their capacity that it would only allow them to carry the stations in the largest markets, leaving smaller markets without local station carriage.

But the appeals panel unanimously rejected the companies' arguments by upholding a June decision by U.S. District Judge Gerald Bruce Lee of Alexandria.

"We hold, as did the district court, that the 'carry one, carry all' rule does not violate either the First Amendment or the other constitutional provisions cited by the satellite carriers," Judge Blane Michael wrote for the court.

In June, Lee dismissed a lawsuit brought by the satellite companies, ruling that the provisions were constitutional.

The appeals panel stated that the carriage provision was a "reasonable, content-neutral restriction on satellite carriers' speech" and served substantial government interests.

The Washington, D.C.-based Association of Public Television Stations lauded the decision.

"Public television has been awarded a victory that will allow Americans to ring in the New Year with more choices in public television stations," said John Lawson, the organization's president and CEO. "This means more quality programming for Americans."

A planned merger between EchoStar and DirecTV parent, Hughes Electronics, is undergoing Justice Department and FCC review. The merger would make EchoStar the nation's largest provider of satellite television.

Update

High court won't hear challenge to 'must-carry' rules for satellite TV
Justices also refuse to consider Detroit's appeal of lower court ruling that city acted improperly when it preferentially granted casino licenses.  06.18.02

Related

FCC chief: Time Warner's ABC blackout raises questions of choice, speech, 'undue market power'
Choice, speech at risk in disputes when big media wield 'undue market power,' Bill Kennard says, threatening regulation unless cable industry can police itself.  05.10.00