677JOHNNY ISAKSON GEORGIA http~r.sakson.senate.gov 131 RussELl SENATE OFFICE Bu ilDING WASHINGTON, DC 20510 tinited ~mtcs ~rnatr 1202) 224-3643 ONE OVERTON PARK 3625 CUMBERlAND BOUlEVARD, SUITE 970 ATLANTA, GA 30339 1770) 661-0999 Chairman Tom Wheeler Federal Communications Commission 445 12th Street, S.W. Washington, D .C. 20554 Dear Chairman Wheeler: WASHINGTON, DC 20510 August 19,2016 VETERANS' AFFAIRS CHAIRMAN SELECT COMMITIEE ON ETHICS CHAIRMAN FINANCE HEALTH, EDUCATION, LABOR, AND PENSIONS SUBCOMMITTEE ON EMPLOYMENT AND WORKPLACE SAFETY, CHAIRMAN FOREIGN RELATIONS I am writing to express my concern over recent service distuptions that have occurred between local television broadcasters and satellite providers. In particular, I am troubled by the impasse in negotiations that occurred last week between A TT / DIRECTV and Heartland .Media, LLC/USA Television Holdings, LLC ("H eartland"), two Georgia-based companies. The difference in size as the potential root cause of stations going off the air witl1 tl1e satellite carriers was highlighted in the past week when Georgia-based Heartland was forced o ff the air by A TT / DIRECTV last Wednesday evening. It appears that Heartland has offered ro resolve their dispute with ATf / DIRECT\! by accepting fees that ar e 18% lower than retransmission fees A'IT/DIRECTV is already paying to retransmit o ther broadcasters, with lesser-rated stations, in the same Designated Market Areas as Heartland. In addition, ATf / DIRECT\! has refused to accept contract terms that have been agreed to by every other major carrier in the retransmission industry. My understanding is that ATT/DIRECTV1s only response for its bargaining position is that Heartland, with five stations (each of which is the highest-rated station in its respective market), is too small to insist upon terms that A TT / DIRECT\! has agreed ro with stations owned by larger broadcasters in the same markets as Heartland. The foregoing does not appear to me to satisfy tl1e "good faitl1" bargaining obligations imposed on the parties by controlling federal statutes and regulations, and I am requesting that you look into not only tl1e specific negotiations involving H eartland, but also tl1e broader issue involved in retransmission negotiations. I am only interested in seeing that the playing field is level and tl1at tl1e requirements of tl1e statutes and regulations are followed. Thank you in advance for your attention to this matter. cc: Michael D . White, President, Chairman and Chief Executive Officer ATT / DIRECTV Robert S. Prather, Jr., President and CEO Heartland Media, LLC/USA Television Holdings, LLC