FIRST OFF . . .

According to testimony before the House telecommunications subcommittee Wednesday, “airwave pirates”--selling devices that illegally receive satellite broadcasts of cable programming--are using modern business techniques, including the distribution of “how-to” videotapes, to establish a sales network for their goods. Witnesses called for swift prosecution and punishment of pirates, and tougher penalties. Currently, a first offense nets up to one year in prison and a fine of up to $25,000. J. Lawrence Dunham, a cable equipment industry executive, said that as many as half of the nearly 1 million satellite decoders on the market have been illegally modified. With the illegal decoders, back yard dish owners can avoid paying for scrambled programming services such as HBO, Showtime and other popular cable channels. Instead, they can pick up virtually all channels free. Dunham said his firm, General Instrument Corp., has has responded to the piracy with changes in the circuitry of the decoder, but he added: “In spite of these efforts, piracy has continued.” Bob Phillips, chief executive officer of the National Rural Telecommunications Cooperative, said pirates are are even making house calls, going “door to door where they see the satellite dishes and offering their services. They will sell entire modified descramblers or modify your own unit at home,” he said.