House Approves Satellite Access for Rural Areas

April 18, 2000

The House has approved a bill that would extend loan guarantees to companies willing to provide rural communities with access to local television through satellite technology. Providers may offer other services as well, including Internet access.

USDA would be authorized to guarantee up to $1.25 billion in loans for providing local broadcast signals to rural areas. In addition, providers could offer other services if they have excess capacity.

Local television via satellite already is available to satellite subscribers in the 20 largest television markets where existing satellite "platform providers" have begun retransmission of local network affiliates. They also have announced their intention to begin retransmission of local TV stations in an additional 20 or 30 television markets over the next two years.

Still there will be at least 160 unserved markets in the nation with more than 6 million households that will not be able to get local television stations.

More than 60% of existing commercial television stations will not be available and more than 30 million households will remain beyond the reach of local television via satellite. If nothing is done, say House officials, local television via satellite will not be available in 27 states nor in parts of nearly every state.