Pai Announces C4 NPRM, Diversity Efforts

The FCC Media Bureau circulated an NPRM Monday seeking comment on creating a new C4 class of FM stations, said Chairman Ajit Pai in his address to a Multicultural Media, Telecom and Internet Council event Tuesday. “This reform could allow hundreds of Class A FM stations to broadcast with increased power.” There was "a lot of talk during previous administrations about trying to take action to promote ownership diversity -- but there was little to nothing done,” Pai said. “I am determined that the FCC on my watch will take concrete steps to create a more diverse communications industry.”

Pai pushed a proposed C4 class before he became chairman (see 1609230067). Though the text of the item on circulation wasn’t released, Pai’s 2016 proposal concerned a new C4 class of FM stations with a wider range than Class A stations but smaller than C3 FM stations. Broadcasters expressed concern last year that the proposed new class could limit space for FM translators, which Pai often advocated. Any order would have to protect translators, a Pai spokesman said in 2016. Commissioners Mike O’Rielly and Brendan Carr said Tuesday they weren’t familiar with the draft. O’Rielly said he’s aware of “diverging views” on the idea in the broadcast industry, and he would have to consider that. MMTC pushed for the C4 proposal last year.

Pai also endorsed renewed efforts to fight discrimination in advertising. A “Fair Play” initiative by the American Association of Advertising Agencies against advertisers excluding minority focused media outlets from their campaigns has his full support, he said Tuesday. AAAA issued a charter Tuesday for members to sign committing to “equal opportunity for all media owners, suppliers and agents,” said its website. “This updated policy aims once again to eliminate the problem of ‘No Hispanic,’ ‘No Urban,’ and ‘No Asian’ dictates in the media industry,” Pai said. “These dictates have no place in the American media marketplace.”

Pai touted the FCC’s proposed diversity incubator program and the efforts of the Diversity and Digital Empowerment Committee. “Our goal is to develop an incubator program that will help address barriers to station ownership, such as lack of access to capital and the need for technical experience,” he said. These were cited as causes for a lack of minority ownership in telecom by Larry Irving, NTIA administrator under President Bill Clinton, who said the agency must ensure the incubator program doesn’t become “a front.” There’s “no greater way” for such a program to lose support, Irving said. The committee meets March 27 at 10 a.m., said a public notice Tuesday.

“Every American who wants high-speed internet access should be able to get it,” said Pai on the digital divide. Bringing more people broadband will require “massive private investment” and removing regulatory barriers, Pai said. Broadband Deployment Advisory Committee’s work is intended to aid in that, Pai said, praising BDAC proposals such as “broadband ready” checklists.

Digital Divide

Lack of universal access to broadband is “problematic” but in a few years will be “life-changing,” Irving said. Extending broadband to rural areas is very important to Charter Communications, said Senior Vice President-Government Relations Alex Hoehn-Saric.

The digital divide and the homework gap will need to be addressed by government “taking a hard look” at programs like Lifeline, said Commissioner Jessica Rosenworcel. The FCC is in a position to roll the program back “too far and too fast,” she said. One of the best ways to solve the problem of the digital divide is to base policy on data collected on broadband development, NTIA Administrator David Redl said. NTIA is examining how public-private partnerships can address the issue and working with the U.S. Chamber of Commerce on a pilot providing broadband access to historically black colleges and universities in North Carolina, he said.

The digital divide could have consequences for the 2020 census, which is expected to rely more on online data entry than any previous version, said Maria Smith Dautruche, National Urban League vice president-foundation partnerships. If being counted in that census is partially dependent on internet access, minority and lower-income populations could be undercounted, and that could affect congressional seats and access to federal programs, said Melanie Campbell, president of the National Coalition on Black Civic Participation.

What happens to people who are “digitally invisible?” asked Nicol Turner-Lee, Brookings Institution fellow. Some want an undercount of certain populations, Campbell said. “It’s no secret that not all Americans have access to broadband,” said Rosa Mendoza, executive director of the Hispanic Technology and Telecommunications Partnership. Members of the public without online access should have the option to enter their census data through postal mail, she said.

5G

Government should step back to allow the U.S. to be the world leader in 5G, Commissioner Brendan Carr said, and deploying 5G will require “a lot of investment.”

“We must do everything we can" to encourage infrastructure development, Redl said: Proponents should examine how federal action could remove barriers to deployment such as local permitting rules, and by easing the way for deployment on federally owned lands.

Rosenworcel said the key to U.S. ascendancy in 5G is scheduling a spectrum auction “immediately.” The effort to deploy 5G shouldn’t be used as vehicle for getting rid of important regulations that protect consumers, Irving said, saying it's important but not “at any cost.” Deployment of 5G is a “once-in-a-lifetime opportunity” for small businesses, said Michael Dennis, CEO of wireless infrastructure company Big Green Group. After infrastructure is deployed, it will need to be maintained, providing future money-making chances for small businesses, he said. There may be problems with not having sufficient workforce to deploy 5G, Carr said.

The only way to get predictable and stable regulations for net neutrality is through congressional action, said O’Rielly. Irving also said legislation is needed, hoping it would take a middle ground between the open internet policy of Communications Act Title II based regulations and the FCC’s current policy, which he called “an abdication of responsibility.” Open internet policy needs to move “beyond Title II,” said former FCC chairman and Wiley Rein co-founder Richard Wiley, who also endorsed a legislative approach. Carr said former net neutrality rules hurt the internet. MMTC's Facebook stream transmitting the event was blocked by Facebook during Carr's and O'Rielly's discussion for violating the website's policies, but MMTC was later told the stream was blocked unintentionally, a spokeswoman told us. The company didn't comment.

People "cannot let [their] guard down" about ensuring a free and open Internet, Commissioner Mignon Clyburn told an audience largely of students at a Safer Internet Day event in Austin Tuesday, according to prepared remarks. Without vigilance, the internet's future "may look very different from today," she said, citing such threats as gatekeeper, company or government blocking or throttling.

Wiley said he's fine with a recent proposal by O’Rielly to review and relax kids' video rules (see 1801260031), which were originally created by Wiley’s commission. Regulations should be reviewed, Wiley said. Irving expressed concern. The FCC should “be careful,” Irving said. Acknowledging children have many more options now than they did when the rules were enacted, Irving cautioned that some of those options, such as “unboxing” videos where children open toy packaging on YouTube, don’t live up to the kid’s TV standards for noncommercial educational content. O’Rielly also spoke Tuesday about his proposal for a “shot clock“ for petitions before the FCC, to prevent delay. The agency shouldn’t stop such a shot clock “when someone sneezes,” O’Rielly said. “People are due a response.” Rosenworcel said she could support a shot clock proposal, though it should leave room for entities to reach agreement without commission involvement.

Extensive permitting processes are a challenge faced by carriers trying to build broadband infrastructure, said Comcast Senior Director-Government Affairs Antonio Williams. Local leaders need to work with industry to make local procedures less of a barrier, said David Young, Verizon public policy vice president. There needs to be more forward thinking on how to make unbuilt areas make “economic sense” for broadband providers, said Williams. He cited an “unlicensed spectrum crunch” as an issue facing broadband deployment, since broadband is often accessed via Wi-Fi.