Influencing Public Policy:The National Cable &

Telecommunications Association

Mary Patroulis

IST 618

27 June 2011

Section one: The National Cable and Telecommunications Association

What is the NCTA? Well, according to NCTA’s own website, it’s the biggest, oldest, and most influential cable trade organization in the United States. Like most lobbying and trade organizations, its offices are located in Washington, D.C. , which provides the organization with close access to the very people it hopes to influence.

NCTA does include members with origins outside the U.S., however, but all groups involved have an interest in influencing telecommunications policies in the United States. A peek at the list of members includes the Bank of Tokyo-Mitsubish UFJ, TMNG Global, and Veronis Suhler Stevenson.

The Association’s “primary mission is to provide its members with a strong national presence by providing a single, unified voice on issues affecting the cable and telecommunications industry.”

Source: http://www.ncta.com/About/About/NCTAMemberCompanies.aspx

How NCTA Defines Itself

“The National Cable & Telecommunications Association, formerly the National Cable Television Association, is the principal trade association of the cable industry in the United States. Founded in 1952, NCTA's primary mission is to provide its members with a strong national presence by providing a single, unified voice on issues affecting the cable and telecommunications industry.

NCTA represents cable operators serving more than 90 percent of the nation’s cable television households and more than 200 cable program networks, as well as equipment suppliers and providers of other services to the cable industry. The cable industry is the nation’s largest broadband provider of high-speed Internet access after investing more than $100 billion over ten years to build a two-way, interactive network with fiber optic technology. Cable companies also provide state-of-the-art digital telephone service to millions of American consumers.

NCTA also hosts the industry's annual trade show, which serves as a national showcase for the cable industry's innovative services, including quality television programming, interactive television services, high-speed Internet access, and competitive local telephone service. “

Source: http://www.ncta.com/About/About/AboutNCTA.aspx

Origins

As noted , “NCTA's primary mission is to provide its members with a strong national presence by providing a single, unified voice on issues affecting the cable and telecommunications industry.”

You might be wondering why there’s been a cable-oriented trade organization since 1952. Television has actually been around in some form since the 1920s. By the mid-1950’s, over half of all American households had televisions. Those in the industry need a “unified voice” if they wanted to protect their interests. Those interests, of course, do not necessarily favor the consumer, a point worth exploring. As we’ll see in the next slide, NCTA’s first order of business was to mount a unified fight against a government excise tax on antenna operators. Since then, as the telecommunications industry has grown—and grown more powerful—so has NCTA.

The Formation of NCTA

“NCTA first was organized as the National Community Television Council in September 1951, when a small group of community antenna (CATV) operators met at a hotel in Pottsville, Pennsylvania. They gathered in response to concern over the Internal Revenue Service's attempts to impose an 8% excise tax on their operations. These business people quickly became aware of other common interests, leading to a series of organizational meetings during September and October 1951 and January 1952. In January 1952, the organization's name officially was changed to National Community Television Association.”

• Source: http://en.wikipedia.org/wiki/National_Cable_%26_Telecommunications_Association

The NCTA clearly has a broad mission. It represents a wide range of powerful industry players, including cable companies, investment firms, television networks, law firms, hardware and software companies, and more. (We’ll look more closely at membership in a moment.) It’s powerful and well-funded, and it has major influence in Washington.

While it may have originally been formed to fight an excise tax, it now tries to help shape policy on a wide range of issues, from net neutrality to regulation of cable monopolies to the development of new telecommunications technologies.

NCTA sponsors the biggest trade show in the industry. All the big players come out for the show. Look, there’s Oprah Winfrey in the center of a photograph from this year’s event! Everybody trusts Oprah, so you might think that NCTA is an altruistic organization working for the greater good. Oprah’s probably there because she herself has a new network.

An examination of the membership, as well as the terms of membership, reveal what’s really at work at NCTA.

Section Two: Membership

As previously noted, NCTA includes a wide range of members, all related to cable and telecommunications industries. There are four types of membership:

1. Cable System Membership

2. Cable Programmer Membership

3. Association Membership

4. Affiliate Membership

Membership benefits vary by type. While Associate and Affiliate members mainly enjoy great rates for presenting at the Cable Show, Cable System and Cable Programmer members enjoy “Representation on Capitol Hill, at the Federal Communications Commission and at other government agencies .”

Source: http://www.ncta.com/About/About/Membership.aspx

Paying to belong to NCTA. Membership, for a price:

Cable system members pay on a scale determined by quarterly revenues.

• Affiliates pay a flat fee.

Source: http://www.ncta.com/About/About/Membership.aspx

Who belongs to NCTA?

As previously noted, NCTA members include a wide range of powerful industry players, including cable companies, investment firms, television networks, law firms, hardware and software companies, and more. Nearly all the powerful networks are members, for example. NCTA members are interested in developing new technologies and trying to control the way the government regulates the industry.

A Partial List of NCTA’s 200+ Members

A & E Television NetworksAccentureActiveVideo Networks, Inc.Acumen Solutions, Inc.Advance/Newhouse CommunicationsAdvanced Digital Broadcast, Inc. (ADB, Inc.)Advocate Networks, LLCAfrica ChannelAlcatel-LucentAlticast, Inc.American Life TV NetworkArcus LLCARRIS Aurora Networks, Inc.Azar Computer Software Services, Inc.BCMBank of Tokyo-Mitsubishi UFJBelAir NetworksBendBroadbandBequick Software, Inc.BET NetworksBigBand Networks, Inc.BlackArrow, Inc.Blonder-Tongue Labs, Inc.BlueHighways TVBond & PecaroBortz Media & Sports Group, Inc.Brigade Capital Management LLCBroadcast Facilities Inc.Broadlogic Network Technologies Inc.Broken Bow TVCablevision Systems Corp.Carlsen Resources, Inc.Castalia Communications Corp.CatholicTVCEA Associates, LLCChambers CommunicationsCharter CommunicationsCim-Tel Cable, Inc.

Cisco SystemsClear Creek

Clearlea p, Inc.Coaxial Cable TV Corp.Coblentz, Patch, Duffy & Bass LLPColton Cable TV & Telephone CoComcast CorporationComcast ProgrammingCom-Link, Inc.CommScope, Inc.Conax AsConsolidated Cable SolutionsConvergysCox Communications, Inc.C-SPANCurrent TVCustomCall Data SystemDavis Wright Tremaine LLPDirect Sales Unlimited, Inc.Discovery Communications, Inc.Disney Media NetworksDow Lohnes, PLLCDuff & Phelps, LLCEagle Cablevision, Inc.Eagle CommunicationsEATEL Corp.EchoStar Technologies, L.L.C.Ensequence, Inc.

Entone, Inc. Entropic Communications, Inc.EricssonESNEESRIEWTN Global Catholic NetworkFamilyNet, Inc.Fleischman & Harding LLPFox Networks Group

France 24Front Porch Inc.Funai Electric Co., Ltd.Game Show Network (GSN)GCI Cable Inc.Goltv, Inc.Gospel Music ChannelGreat Lakes Data Systems, Inc.Hallmark Channel (Crown Media Holdings)Hamilton County Cable TV Inc.HDNet, LLCHearst CorporationHogan & Hartson, LLPHome Box Office (HBO)Home Shopping NetworkHood Canal CablevisionHRTV: HorseRacing TVicueTv, Inc.Imagine CommunicationsiN DEMANDInfoSpace, Inc.Infosys Technologies LimitedInsight Communications, Inc.Inspiration Networks (INSP)Integrated BroadBand Services, LLCION Media NetworksIPgalleryitaas, IncJuniper NetworksKansys, Inc.Karmaloop TVKeene Valley Video, Inc.Kennedy Network Services, Inc.KPMGLiLiquidxstream Systems, Inc.Lode Data CorporationMarketQuiz, Inc.Massillon Cable TV

Mav'rick Entertainment Network, Inc.McGuire Wood LLPMediacom Communications CorporationMETASWITCHMGM HDMidcontinent CommunicationsMintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C.Mixed Signals, Inc.Momentum Telecom WholesaleMotorola, Inc.Moultrie Telecomm. Inc.Mountain Zone TVMTV NetworksNagraVision S.A.NAPCO Security Technologies, Inc.National Geographic Channel (NGC)NBC Universal NDS Americas Inc.Nelson County Cablevision Inc.NEUSTAR, Inc.New Hope Telephone Co-opNHK Cosmomedia America, Inc.

Openetfetime Entertainment SerOutdoor ChannelOvation TVPace Micro Technology PLCPanasonic Broadcast & TV Sys.pureIntegration, LLCQVC, Inc.Qwest CommunicationsRainbow Media HoldingsRasenberger Media LLCRBC DanielsRCH CableRed Bull Media House North AmericaReelzChannelRentrak CorporationRetirement Living TV, LLCRFD TVRovi CorporationSageQuestScripps Networks InteractiveSeaChange InternationalService Electric Cablevision SES World SkiesSherman & Howard L.L.C.Si' TVSigma SystemsSilver Star Communications

Sjoberg's, Incvices

Source: http://www.ncta.com/About/About/NCTAMemberCompanies.aspx

Section Three: Public Policy Agenda

• What kind of telecommunication and information policy issues does NCTA pay attention to?

• What positions does it advocate on those issues?

The pull-down menu on NCTA’s website shows the depth of its concerns. The last three items on the right all relate to public policy. The second screenshot shows “filings” of interest to the members, for example.

Source: http://www.ncta.com/Filings/5618.aspx

For some issues, NCTA publishes a clear position. Here’s NCTA’s position on privacy. The language here is slippery, but it’s clear that NCTA does not want more privacy regulations.

Source: http://www.ncta.com/IssueBriefs/Consumer-Privacy.aspx?view=2

And here’s the official position on video competition.

Source: http://www.ncta.com/IssueBriefs/VideoCompetition.aspx?view=2

NCTA represents a complex set of industry concerns. For example, it argues against strong industry regulations, such as regarding net neutrality, as was made plain in this report on the House Energy and Commerce Communications and Technology Subcommittee, which recently held hearings on the issue of keeping Internet bandwidth available to all consumers:

“In written statements provided to the committee, Steve Largent, president and CEO of wireless industry group CTIA, said "we do not believe that net neutrality rules are necessary for the wireless industry," while National Cable and Telecommunications Association President and CEO Kyle McSlarrow said "such rules were a solution in search of a problem.”

"We would much rather see (and believe it would be more equitable to have) a light regulatory touch for everyone in the Internet ecosystem than a heavy and counterproductive regulatory regime on part or all of the Internet ecosystem," McSlarrow said in his statement.

(J. Smith, 2011)•

Here he appears to be very casual as he takes an almost colloquial approach to discussing the broadband stimulus package. (No suit, this guy! He’s regular!)

Of course, his members want to profit from broadband availability over which they (not the government) have control.

http://www.youtube.com/watch?v=4euQranGBAc&feature=related

Here’s Kyle on C-SPAN suggesting that Google can’t really compete with cable companies on broadband:

http://www.youtube.com/watch?v=IblbhC_LzVo&feature=related

Of course, it’s worth noting the NCTA represents C-SPAN. You’ll notice also that Google is not on the list of NCTA members.

And here’s an NCTA-sponsored anti-net neutrality ad. Pay attention to how they make you feel like they’re on your side! This is a benefit of having lots of money to fund a PR department.

http://www.youtube.com/watch?v=oPIYxtjLFeI

Section Four: Member Interest in the Policies Advocated

NCTA members pay handsomely to have their interests represented. Lucky for the industry, NCTA can help its members by actually running ads and having its CEO appear on programs.

Check out this romantic video that makes the cable industry look like it helped us all fulfill the American Dream: http://www.youtube.com/watch?v=tgN5p1P-q6Q

NCTA wants its members to realize profits.

Therefore, its positions and political actions are about protecting the industry, not the consumer.

It wants to limit the government controls and regulations placed on the activities of its members.

Some public policy issues of interest to NCTA:La CarteSeveral independentand

industry analysis have been consistent in their conclusions that government-mandated pay-per-channel regulation would be likely to hurt consumers by increasing prices, decreasing choice and reducing diversity in programming.

Broadband AdoptionThe cable industry supports the federal government’s efforts expand broadband access and spur adoption and has encouraged targeted programs that can make a difference in America’s broadband gap.

Broadband DeploymentCable is leading the way in bringing broadband to nearly every American.

Cable's Value

In a highly competitive multichannel video marketplace, consumers are enjoying better value as a result of the additional choices, higher quality programming and more advanced technology that’s available.

Consumer PrivacyThe cable industry has a proven record in respecting and protecting the personal information of its customers and the comprehensive privacy framework that governs cable has been established in The Communications Act for nearly 25 years.

Online PiracyAs broadband has become an ubiquitous technology available to the vast majority of consumers, online piracy and the electronic theft of copyrighted material has flourished, harming content creators who have lost billions of dollars and thousands of jobs.

Open InternetSome groups are pushing Congress to consider legislation that could freeze investment and innovation of the Internet. That legislation is referred to as “network neutrality.” But without evidence of a problem, cable opposes regulation of the Internet.

Pole AttachmentsPole attachment rates cost broadband providers hundreds of millions of dollars annually which significantly increases the cost of building new networks.

Protecting ChildrenAs a leading provider of TV and high-speed Internet services, the cable industry shares the concerns of parents about shielding children from TV and online content they deem inappropriate, and keeping children safe when online.

Tax ParityDirecTV and EchoStar (Dish Network) are pushing for passage of legislation which would prohibit states from adopting a common-sense approach to would ensure all

multichannel video providers (cable and DBS) pay an equal amount in taxes and fees.

Universal ServiceThe cable industry has long supported the goals and policies of universal service. NCTA supports clarifying the legal obligation for providers of IP-enabled telephony services to pay into the universal service fund (USF).

Video CompetitionToday, the video market is fully competitive and the array of choices continues to grow. More than 32 million consumers now subscribe to cable’s competitor as multiple video providers – including Direct Broadcast Satellite (DBS), alternative broadband providers like RCN and the nation’s two largest telephone companies – vie for customer loyalty, each trying to provide unique new products. As a result of this competition, a wide new variety of services – both video and non-video – are available to consumers from multiple providers.

Video DevicesConsumers are increasingly connecting their own consumer electronic devices to cable's networks. In these cases, a CableCARD, a device that plugs into a slot built into a digital television or other device, will allow for digital cable services without a set-top box.  The CableCARD provides the same security/descrambling function as cable’s set-top boxes but can be plugged into "cable ready" digital devices (like digital TVs or DVRs).

– Source: http://www.ncta.com/Issues.aspx

NCTA advocates for its members in a number of ways. One way is through campaign contributions.

NCTA PAC

According the to Center for Responsive Politics, NCTA made some pretty generous campaign contributions in 2010. The charts to the right reveal just how many millions of dollars

Source: http://www.opensecrets.org/pacs/lookup2.php?strID=C00010082

Party Breakdown

These charts, also provided by the Center for Responsive Politics, show that NCTA spent more on trying to influence Democrats in 2010 than it did trying to influence Republicans. Perhaps this is because Democrats are more likely to favor regulatory measures to monitor the industry, while Republicans tend to favor fewer regulations. Or perhaps contribution amounts are related to whose in power at the time.

Source: http://www.opensecrets.org/pacs/lookup2.php?strID=C00010082

As previously mentioned, NCTA tries to affect public policy on behalf of its membership throughits CEO’s appearance on television programs.

NCTA also makes use of advertisements and videos, a huge annual industry trade show, congressional testimonies, lawsuit filings, and other means to advocate on behalf of cable and telecommunications concerns.

Conclusions

The National Cable and Telecommunication Association is a well-established, extremely powerful trade organization. With more than 200+ dues-paying members, many of which are among the most influential players in the cable market (like TimeWarner, Cisco Systems, and Fox), this organization has a wealth of funds to help influence public policy on behalf of its members, including through campaign contributions and testimonies to Congressional committees.

NCTA claims to have maintain a “day-to-day liaison with Congress, educating Members and staff, and advocating support for the cable industry's legislative agenda, both on Capitol Hill and within the Executive Branch. The department prepares testimony, briefing materials, and handouts used in the Association's lobbying efforts and keeps NCTA members apprised of legislative issues involving cable.”

• Source: http://www.ncta.com/Departments.aspx

In addition, NCTA makes use of the tools of the very industry it supports in trying to sway public opinion on issues of interest to the industry. NCTA executives regularly appear on television programs to discuss issues such as net neutrality. NCTA spends considerable funds on tv spots and other advertisements designed to influence public opinion and, therefore, public policy. It has an active Public Affairs department.

References

Center for Responsive Politics, Initials. (2011, May 20). Open secrets: pacs national cable & telecommunications assn. Retrieved from http://www.opensecrets.org/pacs/lookup2.php?strID=C00010082

CSPAN. (Creator) (2010, February 20). Kyle McSlarrow, president and CEO of the National Cable and Telecommunications Association on The Communicators. Retrived from: http://www.youtube.com/watch?v=IblbhC_LzVo&feature=related

Josh Smith.  (9  March). No Neutrality in Internet Access Hearing. National Journal Daily P.M. Update. N. P.

National Cable & Telecommunications Association. (2011). Wikipedia. Retrieved June 23, 2011, from http://en.wikipedia.org/wiki/National_Cable_%26_Telecommunications_Association

NCTA. (n.d.). Cable: national cable and telecommunications association. Retrieved from http://www.ncta.com/

NCTA (Creator). (2009, January 29) Kyle McSlarrow Discusses the Broadband Stimulus Package. Retrieved from: http://www.youtube.com/watch?v=4euQranGBAc&feature=related

NCTA (Creator) Jameshatesyou. (Poster) (2006, December 4) Mumbo Jumbo. Retrieved from: http://www.youtube.com/watch?v=oPIYxtjLFeI

NCTA. (Creatpr) (2006, October 10) Dreamers. [Video] Retrieved from: http://www.youtube.com/watch?v=tgN5p1P-q6Q.

Fun fact!While working on this paper over the weekend, the cable went out in my area. For many hours, I was unable to conduct research or access Blackboard. Because I have a digital package from TimeWarner, I couldn’t even email or call my cable provider from my home phone! (I had to use my cell phone and a paper phone directory! Also, my reading glasses….) .

Of course, I got a recording.

Cable companies are monopolies, and organizations like NCTA exist primarily to help preserve the interests of monopolies and companies who want to profit, often without the nuisance of government oversight. Consumer concerns only matter to them on the profit level.

That’s one more reason why we need a Consumer Protection Agency.