Congress Orders Northpoint Tests, Continues Negotiating Rural Loan Bill

DAVID CONNELL

In what some satellite TV lobbyists are claiming is an "unprecedented" move, Congress has drafted legislation that would force Northpoint Technology to submit its service to third-party testing to ensure it does not interfere with satellite TV services.

Lawmakers added the provision to a bill that would provide government-guaranteed low-interest loans to companies that bring local channels to satellite TV subscribers living in rural areas.

Rural cable operators could see some of those loans, depending on which version of the bill passes. The House version of the bill bars incumbent cable operators from accessing the funds, while the Senate version makes no distinction between multichannel video providers.

Northpoint plans to use a portion of the spectrum assigned to DBS providers, such as DirecTV and EchoStar Communications' DISH Network, to deliver a terrestrial wireless multichannel video service. Satellite TV interests have opposed the service in Congress and at the FCC, claiming it will interfere with DBS signals.

A lobbyist representing the satellite TV industry on Capitol Hill says the Congressional mandate will "send a strong message to the FCC," which is reviewing Northpoint's application to use the spectrum.

Industry sources speculate the FCC may grant the company provisional authority to use the DBS spectrum but open a notice of proposed rulemaking on the issue before granting Northpoint a license to begin operating.

Northpoint says it is fine with the congressional testing mandate and would not fight it on the Hill.

"Previous satellite proposals prohibited the FCC from moving forward with the allocation and licensing of the Northpoint system while the analysis was conducted," company president Sophia Collier said in a statement. "This language allows the FCC to continue action on the allocation and licensing for Northpoint while the testing is being completed."

If lawmakers can make a decision on which multichannel video providers would qualify for the government guaranteed loans, a version of the rural loan bill could be attached to an appropriations bill and passed before the end of the session, Hill staffers say.