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 TokyoMitsubish 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 Networks
Clear Creek
Accenture
Clearlea p, Inc.
ActiveVideo Networks, Inc.
Coaxial Cable TV Corp.
Acumen Solutions, Inc.
Coblentz, Patch, Duffy & Bass LLP
Advance/Newhouse Communications
Colton Cable TV & Telephone Co
Advanced Digital Broadcast, Inc. (ADB,
Inc.)
Comcast Corporation
Advocate Networks, LLC
Comcast Programming
Africa Channel
Com-Link, Inc.
Alcatel-Lucent
CommScope, Inc.
Alticast, Inc.
Conax As
American Life TV Network
Consolidated Cable Solutions
Arcus LLC
Convergys
ARRIS
Cox Communications, Inc.
Aurora Networks, Inc.
Azar Computer Software Services, Inc.
C-SPAN
BCM
Bank of Tokyo-Mitsubishi UFJ
BelAir Networks
BendBroadband
Bequick Software, Inc.
BET Networks
BigBand Networks, Inc.
BlackArrow, Inc.
Blonder-Tongue Labs, Inc.
BlueHighways TV
Bond & Pecaro
Bortz Media & Sports Group, Inc.
Brigade Capital Management LLC
Broadcast Facilities Inc.
Broadlogic Network Technologies
Inc.
Broken Bow TV
Cablevision Systems Corp.
Carlsen Resources, Inc.
Castalia Communications Corp.
CatholicTV
CEA Associates, LLC
Chambers Communications
Charter Communications
Cim-Tel Cable, Inc.
Cisco Systems
Current TV
CustomCall Data System
Davis Wright Tremaine LLP
Direct Sales Unlimited, Inc.
Discovery Communications, Inc.
Disney Media Networks
Dow Lohnes, PLLC
Duff & Phelps, LLC
Eagle Cablevision, Inc.
Eagle Communications
EATEL Corp.
EchoStar Technologies, L.L.C.
Ensequence, Inc.
Entone, Inc. Entropic
Communications, Inc.
Ericsson
ESNE
ESRI
EWTN Global Catholic Network
FamilyNet, Inc.
Fleischman & Harding LLP
Fox Networks Group
France 24
Front Porch Inc.
Funai Electric Co., Ltd.
Source: http://www.ncta.com/About/About/NCTAMemberCompanies.aspx
Game Show Network (GSN)
GCI Cable Inc.
Goltv, Inc.
Gospel Music Channel
Great Lakes Data Systems, Inc.
Hallmark Channel (Crown Media
Holdings)
Hamilton County Cable TV Inc.
HDNet, LLC
Hearst Corporation
Hogan & Hartson, LLP
Home Box Office (HBO)
Home Shopping Network
Hood Canal Cablevision
HRTV: HorseRacing TV
icueTv, Inc.
Imagine Communications
iN DEMAND
InfoSpace, Inc.
Infosys Technologies Limited
Insight Communications, Inc.
Inspiration Networks (INSP)
Integrated BroadBand Services, LLC
ION Media Networks
IPgallery
itaas, Inc
Juniper Networks
Kansys, Inc.
Karmaloop TV
Keene Valley Video, Inc.
Kennedy Network Services, Inc.
KPMG
LiLiquidxstream Systems, Inc.
Lode Data Corporation
MarketQuiz, Inc.
Massillon Cable TV
Mav'rick Entertainment Network, Inc.
McGuire Wood LLP
Mediacom Communications Corporation
METASWITCH
MGM HD
Midcontinent Communications
Mintz, Levin, Cohn, Ferris, Glovsky & Popeo,
P.C.
Mixed Signals, Inc.
Momentum Telecom Wholesale
Motorola, Inc.
Moultrie Telecomm. Inc.
Mountain Zone TV
MTV Networks
NagraVision 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-op
NHK Cosmomedia America, Inc.
Openetfetime Entertainment
SerOutdoor Channel
Ovation TV
Pace Micro Technology PLC
Panasonic Broadcast & TV Sys.
pureIntegration, LLC
QVC, Inc.
Qwest Communications
Rainbow Media Holdings
Rasenberger Media LLC
RBC Daniels
RCH Cable
Red Bull Media House North America
ReelzChannel
Rentrak Corporation
Retirement Living TV, LLC
RFD TV
Rovi Corporation
SageQuest
Scripps Networks Interactive
SeaChange International
Service Electric Cablevision
SES World Skies
Sherman & Howard L.L.C.
Si' TV
Sigma Systems
Silver Star Communications
Sjoberg's, Incvices
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)
•
National Cable and Telecommunications Association
President and CEO Kyle McSlarrow has frequently appeared
on television and in videos to advocate on behalf of NCTA:
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 Adoption
The 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 Deployment
Cable 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 Privacy
The 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 Piracy
As 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.
adopting a common-sense approach to would ensure all
multichannel video providers (cable and DBS) pay an equal
amount in taxes and fees.
Universal Service
The 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).
Open Internet
Some 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.
Video Competition
Today, 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
Pole Attachments
Pole attachment rates cost broadband providers hundreds of
millions of dollars annually which significantly increases the
cost of building new networks.
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 Devices
Consumers 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
Protecting Children
As 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.
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).
–
Tax Parity
DirecTV and EchoStar (Dish Network) are pushing for
passage of legislation which would prohibit states from
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 through
its 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=tgN5p1Pq6Q.
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.