Direct Broadcast Satellite In America: Its Potential and Policy Implications
[This is an Abstract of my Harvard dissertation.]
Direct broadcast satellite (referred to as "DBS"), is probably the most radical telecommunications development in recent years in America. Its impact, potentially, is enormous because it would mean broadcasting from a satellite directly into homes, thus bypassing all existing communications routes.
Almost all present telecommunications structures and markets could be altered if a DBS system were in place. Networks may no longer be the major route for program delivery. Individual broadcast stations (and the local emphasis they are supposed to safeguard) could be threatened, as advertising revenues may move to other communications systems. Cable growth may not be necessary in rural areas, since a DBS system could deliver directly to them.
Will America see direct broadcast satellite soon? Most authorities I've interviewed say "Yes." It can be done technically, and, in a free marketplace, it is likely to be tried if it's do-able.
The Communications Satellite Corporation, known as Comsat, has indicated they will propose a DBS system for America very soon in a filing before the Federal Communications Commission. The Comsat plan, according to its president, will involve a multiplicity of satellites, and will deliver (on a Pay TV basis) between 2 and 6 TV channels to subscribers. The signals would be received by an antenna in a customer's home that would be two or three feet in diameter. Both a national and a regional satellite service are possible.
Obviously, a direct broadcast satellite system involves a large capital investment. Comsat talked earlier with Sears about a partnership, with Sears handling the equipment installation in individual homes, perhaps charging it on a customer's Sears account. The Comsat-'Sears talks stalled, thus delaying the Comsat filing, while the corporation tried to seek other approaches for marketing a DBS system. Although no one else has publicly indicated interest in marketing DBS in America, we may see others attempting to organize a plan for FCC approval in the future.
This month, in an FCC meeting devoted entirely to the DBS question, the Commission indicated it would welcome DBS proposals. In fact, due to the high startup costs of the system, the FCC is considering a policy of minimal regulator interference—to encourage people to enter this new communications arena.
America faces many interesting questions as we look down this DBS road. It may be five years before some of the answers emerge but some of the issues are already becoming clear and will require much analysis:
With the dynamic cable growth occurring in America, is "another Pay TV system" the best use of scarce spectrum?
Can America move ahead with DBS plans without knowing what international agreements will emerge from the Western Hemisphere satellite conference in 1983?
Should America encourage an "interim" DBS system — to help us gather data for the 1983 conference?
Should a direct broadcast satellite system be required to provide public service benefits for American citizens — to help taxpayers get the "public dividend" they deserve from our space investments?
There have been some interesting public-service related DBS experiments in America. The Archdiocese of San Francisco's "Project Interchange" was one such satellite project. It will be interesting to see the potential of DBS debated. Perspective readers will, I am sure, participate creatively in the debate.