Open Competition in Video Markets

[Michael Ward <mike>]

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The following letter should have been posted to TAP-INFO last week, but 
due to problems with the listserver it was postponed.  Better late than 
never.


March 8, 1994

RE:  Open Competition in Video Markets

Dear Members of the House Committee on Energy and Commerce:

We are writing to urge you to modify HR 3636 to include
provisions which encourage the use of switching technologies and
open architecture user interfaces when building broadband video
networks.

Many of the most difficult problems in providing non-
discriminatory access to video markets will be much easier to
solve if broadband video networks are connected to even the most
basic switching mechanisms.  Indeed, for many purposes, a coaxial
system connected to a switch may provide more choices for
consumers than a fiber network that is run like a closed cable
system with dedicated channels.

As you know, advances in data compression and switching
technologies have created new opportunities to provide consumers
with more choices in video and data markets, and also an
opportunity to introduce robust competition for many information
services.  However, while some telecommunications carriers are
designing video services based upon a switched architecture,
others are hoping to emulate the closed systems that have already
caused many anti-competitive problems in the cable market.

The attached memorandum provides our suggested changes in the
sections on HR 3636 which pertain to the Video Platform Services. 
In general, this would delete references to the "channel"
capacity of the system, with a more general reference to the
system's transmission capacity, and require the common carrier to
describe the system architecture, including the availability of
switching mechanisms and access to the user interface.  Finally,
the language would give the Commission the responsibilities to
provide regulations which would require the common carrier to
provide adequate switching mechanisms, and opportunities to
provide independent user interfaces (hardware and software), in
order to promote the free expression of ideas, the widest
diversity of sources of information, and competition among
information service providers.

Sincerely,


James Love                    Ned Daly
Taxpayer Assets Project       Taxpayer Assets Project
610/658-0880                  202/387-8030

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              Amendment on Common Carriage in Video Markets
      Adding provisions on Switching and the User Interface. V. 1.01


Using the committee substitute, dated feb. 27, 1994 (5:08pm) as
the working document:


On page 43, line 25, replace the word "channel" with
"transmission"

On page 44, line 6, replace the words "such channel" with
"transmission"

On page 44, line 8, strike the word "channel"


On page 44, line 19, strike the word "channel"

On page 44, line 23, replace the word "channels" with the word
"capacity"

One page 45, line 1, replace the word "channels" with the word
"capacity"

One page 45, line 9, replace the words "channel capacity" with
the words "access to the system"

On page 45, line 17, strike the word "channel," 


On page 46, insert a new subsection "(6)

     "(6) System Architecture.  Any common carrier subject to the
requirements of paragraph (1) shall, prior to establishing a
video platform, submit to the Commission a description of the
architecture of the system, including mechanisms to provide
consumer choice through switching mechanisms and user interfaces.
The common carrier shall also provide opportunities for
consumers, state and local regulators, and unaffiliated
programming entities to comment regarding their needs and views
regarding access to switching mechanism and user interfaces.


On page 47, insert a new subsection between "(E) and "(F) which
reads:

     "(F) require the video platform to provide adequate
switching mechanisms in order to promote open access to video
programming markets, opportunities to provide independent user
interfaces; and fair and non-discriminatory access to the
switching mechanisms and the user interfaces, in order to insure
democratic debate, free expression of ideas, and the widest


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