FCC Continually on Opposite Side of Broadcasters, Pai Aide Says

The FCC has opposed regulation where broadcasters support it and supported regulation where broadcasters oppose it, said Matthew Berry, aide to Commissioner Ajit Pai, in a speech to the Florida Association of Broadcasters Convention Wednesday. “And on uncontroversial issues where broadcasters ask for action, the Commission often seems to do nothing,” Berry said in prepared remarks. “The end result has left many wondering what exactly is motivating the Commission’s decision-making.” Pai's office tends not to favor “the clumsy fist” of regulation, Berry said. “I was thinking of wearing a button today that read: 'Don’t blame me; I work in the minority.'" Berry criticized the FCC Democratic majority for supporting certain incentive auction policies over the objections of broadcasters, such as dynamic reserve pricing, preserving vacant channels for unlicensed use, and not limiting the auction budget to the repacking fund. “Too often throughout this proceeding, the Commission has tried to rig that market to benefit favored companies and industries and penalize those in disfavor,” he said. If DRP is abandoned in the FCC July auction order, as expected (see 1506170052), it will be “a major victory” for broadcasters, Berry said. Efforts by wireless carriers to reserve spectrum in the incentive auction are “amusing,” Berry said. ”It isn’t every day that companies with market caps over $30 billion attempt to foment a populist uprising so they can receive more corporate welfare from the federal government,” he said. “If their effort succeeds, there will be less money to pay broadcasters in the reverse auction.” The FCC should stop “thumbing its nose at Congress” and update media ownership rules, Berry said. He criticized the continued existence of the newspaper broadcast cross-ownership rule, and praised efforts in Congress that would counter the FCC rule change to increase how many joint sales agreements are attributable for ownership purposes. “I am optimistic that we will prevail,” he said in support of the congressional efforts. Berry also said it's time for the FCC to act on modernizing contest rules and revitalizing AM radio. “Time is not on the side of the grand old band," he said. The agency had no comment.