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Press
Release Contact:
Wednesday, April 4, 2001
Gene Kimmelman/David
Butler
202-462-6262
Consumers Union Washington DC Office
CONSUMER, CIVIL
RIGHTS GROUPS ASK FCC
TO APPROVE LICENSE FOR BROADWAVE USA
WASHINGTON, DC - Civil rights and consumer groups today filed a petition at the Federal Communications Commission (FCC) in support of an application by Broadwave USA for a license to provide video and broadband Internet services.
Consumers Union, the Consumer Federation of America, the Leadership Conference on Civil Rights, the United Latin American Citizens, the Center for Media Education and the Media Access Project asked the FCC to approve Broadwave's application.
According to Broadwave, the company's "Northpoint" technology would allow people to take an off-the-shelf satellite dish, point it to the North, and receive 60-90 television channels for $20 a month. Broadwave also plans to offer high-speed Internet service for an additional $20 a month, which is considerably below the current cost of either high-speed cable modem service or DSL (digital subscriber line).
Gene Kimmelman, Co-Director of Consumers Union's Washington DC Office, said Broadwave would inject much-needed competition into the marketplace.
"This company should be granted a license without delay," said Kimmelman. "It is poised to compete with cable TV companies that have been gouging consumers with inflated prices for years. Cable rates have risen at nearly 3 times the rate of inflation over the last 5 years. Granting Broadwave's license would also introduce tremendous diversity into a marketplace that has been homogenized through media consolidation-80% of the participants in Broadwave's 69 local affiliates are women and minorities."
Ed Pena, special counsel and former national president of the United Latin American Citizens, said, "We are excited by Broadwave's technology because it would make high-speed Internet service available for a reasonable price to our members in poorer and underserved areas. Other companies tell us it is not 'cost-effective' to deploy broadband service to these areas. We think Broadwave has real potential to help move many of our members into the information age."
Comments were also filed in opposition to Broadwave's application by AT&T, the nation's largest cable TV provider, and Echostar, a satellite TV provider.
"The efforts by AT&T and DBS to deny Broadwave a license appear to be nothing more than attempts to block competition," Kimmelman stated. "The best way for the FCC to put an end to skyrocketing cable rates in the near future is allowing Broadwave to begin competing as soon as possible."
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Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers
