HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, March 24, 2004
2004 Ron Paul 22:1
Mr. PAUL. Mr. Speaker, I rise to introduce the Television Consumer Freedom Act, legislation
repealing regulations that interfere with
a consumers ability to obtain desired television
programming. The Television Consumer
Freedom Act also repeals federal regulations
that would increase the cost of a television.
2004 Ron Paul 22:2
My office has received numerous calls from rural satellite and cable TV customers who are
upset because their satellite or cable service
providers have informed them that they will
lose access to certain network and cable programming.
The reason my constituents cannot
obtain their desired satellite and cable services
is that the satellite and cable marketplace
is fraught with government interventionism
at every level. Local governments
have historically granted cable companies
franchises of monopoly privilege. Government
has previously intervened to invalidate exclusive
dealings contracts between private parties,
namely cable service providers and program
creators, and has most recently imposed
price controls. The Library of Congress has
even been delegated the power to determine
prices at which program suppliers must make
their programs available to cable and satellite
programming service providers.
2004 Ron Paul 22:3
It is, of course, within the constitutionally enumerated powers of Congress to promote
the progress of Science and Useful Arts by
securing for limited Times to Authors and Inventors
the Exclusive Right to their respective
Writings and Discoveries. However, operating
a clearing-house for the subsequent transfer
of such property rights in the name of setting
a just price or instilling competition via central
planning seems to be neither economically
prudent nor justifiable under this enumerated
power. This process is one best reserved
to the competitive marketplace.
2004 Ron Paul 22:4
It is impossible for the government to set the just price for satellite programming. Over
regulation of the cable industry has resulted in
competition among service providers for government
privilege rather than free market competition
among providers to offer a better product
at a lower price. While federal regulation
does leave satellite programming service providers
free to bypass the governmental royalty
distribution scheme and negotiate directly with
owners of programming for program rights,
there is a federal prohibition on satellite service
providers making local network affiliates
programs available to nearby satellite subscribers.
This bill repeals that federal prohibition
so satellite service providers may freely
negotiate with program owners for programming
desired by satellite service subscribers.
Technology is now available by which viewers
could view network programs via satellite as
presented by their nearest network affiliate.
This market-generated technology will remove
a major stumbling block to negotiations that
should currently be taking place between network
program owners and satellite service
providers.
2004 Ron Paul 22:5
This bill also repeals federal laws that force cable companies to carry certain programs.
These federal must carry mandates deny
cable companies the ability to provide the programming
their customers desire. Decisions
about what programming to carry on a cable
system should be made by consumers, not
federal bureaucrats.
2004 Ron Paul 22:6
The Television Consumer Freedom Act also repeals federal regulations that mandate that
all TVs sold in the United States contain digital
technology. In complete disregard of all
free market and constitutional principles, the
FCC actually plans to forbid consumers from
buying TVs, after 2006 that are not equipped
to carry digital broadcasts. According to Stephen
Moore of the CATO Institute, this could
raise the price of a TV by as much as $250
dollars. While some television manufactures
and broadcasters may believe they will benefit
from this government-imposed price increase,
they will actually lose business as consumers
refrain from purchasing new TVs because of
the government mandated price increase.
2004 Ron Paul 22:7
Mr. Speaker, the federal government should not interfere with a consumers ability to purchase
services such as satellite or cable television
in the free market. I therefore urge my
colleagues to take a step toward restoring
freedom by cosponsoring my Television Consumer
Freedom Act.