"This issue has caused heartburn for years between the satellite, cable and broadcasting industries, and consumers in rural America have been caught in the middle," Grassley said. "Satellite customers want the kind of valuable community information that only local TV stations can provide, such as weather emergencies and local news and sports. Iowans should not be left behind."
The 1999 Satellite Home Viewers Improvement Act (SHVIA), which was signed into law last year, allowed satellite companies to beam local broadcasting back into their local communities. However, the satellite providers argue they do not have sufficient capacity to provide local-into-local service nationwide, and it would not be economically feasible for them to serve more than the top 40 to 60 markets in the country. Consequently, smaller and mid-sized communities and rural markets don't benefit from the change in the law. Iowa is one of a number of states that does not have any markets within the top 60 markets.
The "Local TV Act of 2000" establishes a $1.25 billion loan guarantee program to encourage companies, on a technologically neutral basis, to provide local signals in rural and small markets.
"This legislation allows satellite consumers in rural America to be on equal footing with consumers in larger markets," Grassley said. "Satellite TV can now be a true competitor to cable in Iowa. Both outlets can compete equally for the consumer's dollar."
Grassley has made it a top priority to give rural satellite subscribers access to their local network broadcasting. Last year, he brought to the forefront the needs of Iowa satellite subscribers in several letters urging that consumers in rural and less populated markets have equal programming access.