Despite Satellite Policy, Ads Fly

Advertising is the lifeblood of TV networks. But for the 40 or so channels that are reserved for nonprofit programmers on the nation's satellite television services, commercials are a no-no.

At least they're supposed to be.

Under an 8-year-old rule that Congress designed to increase educational fare on satellite, DirecTV and rival Dish Network, owned by EchoStar Communications Corp., must set aside 4% of their channel capacity for nonprofit programmers that serve the common good with ad-free content.

But critics say ambiguities in the guidelines and weak enforcement have resulted in rampant abuses. Several nonprofit channels ignore the rules and air advertisements, according to consumer advocates and industry insiders. Some also sell airtime to programming suppliers, a practice that is not explicitly forbidden but critics say raises questions about whether some channels are wrongly profiting.

In comments this month filed with the Federal Communications Commission in support of a complaint last year, Farm Journal Inc., a for-profit media company, alleged that RFD-TV, a public interest channel about rural living, has aired commercials for bluejeans, lawn mowers, horse saddles and quilting books.

"Such conduct mocks the congressional and FCC requirements," the filing stated.

Patrick Gottsch, the founder of RFD-TV, said, "We feel we are fully in compliance and look forward to this being resolved."

Some public interest programmers complain that those requirements are so fuzzy that compliance is difficult.

"Some of the FCC rules are not as clear as they should be," said Marcus Lamb, chief executive of Daystar Television Network, a Dallas-based Christian broadcaster that is under FCC investigation for allegedly airing commercials and selling airtime on its public interest channel. "We have tried our best to follow the rules, but the FCC is probably not totally clear about their own rules."

Critics also claim that flaws in the guidelines for awarding the channels have allowed one group to benefit more than any other. Today, religious broadcasters occupy about 40% of all set-aside channels despite the fact that both satellite firms were providing similar faith-based programming when those channels were added.

The result: Many educational programmers with no other access to the airwaves have been shut out.