With only 2 digital carriage pacts to show for 3 years of negotiations with cable operators, public broadcasters are throwing their weight behind proposed legislation by House Commerce Committee Chmn. Tauzin (R-La.) that would resolve issues involving transition to digital. APTS Pres. John Lawson told us: “APTS will back the legislation. We hope to work with committee staff over the August recess to secure inclusion of some of our agenda items in that draft bill.” Tauzin has said he planned to introduce bipartisan, omnibus DTV bill in Sept. Besides federal funding, PTV issues include cable carriage, assuring DTV tuners are built into TV sets and ensuring that definition of “primary video” under Cable Act is interpreted to include all of PTV’s digital programming streams and not merely one, he said. Lawson ducked question on dual analog/digital carriage during transition, saying public broadcasters were giving “primary emphasis” now to primary video. APTS/PBS cable negotiating team is in earnest discussions now with 2 MSOs, including Cox, Lawson said, but no carriage deal is imminent. In recent testimony to Congress, Lawson said that despite PBS and APTS board members’ in “hundreds of hours” seeking cable carriage agreements, PTV stations had been able to clinch deals only with Time Warner and Insight Communications. Two MSOs together reach only 21% of U.S. cable households, he told members of House Telecom Subcommittee: “This slow progress in reaching cable carriage agreements means that we all still are a long way from achieving the goals for DTV receiver penetration established by Congress.” Asked what was holding up agreements with MSOs, Lawson told us there were several outstanding issues, but sticking points typically were carriage of all DTV signals of PTV stations and carriage of unduplicated signals of multiple PTV stations in market. He said pubic broadcasters’ inability to reach more carriage agreements was causing stations to question whether “pursuing voluntary, negotiated carriage is a fruitful investment of their scare resources; whether at some point, we must redirect our efforts toward securing carriage through government intervention.” Lawson said his expectation of reaching carriage deals with other MSOs by year-end were “pretty restrained at this point.” If Congress failed to step up funding for PTV’s digital conversion, as many as 1/3 of 356 PTV stations wouldn’t make May 2003 deadline, Lawson said, and many stations that made deadline wouldn’t be equipped for local origination of programming and services: “So our system has many unfulfilled needs and we really need the federal government to step up support.” Stations had raised $771 million from state and private sources, and with only $258 million so far from federal govt., “we are unfortunately very short” of estimated total conversion cost of $1.7 billion, he said. PTV got late start in terms of persuading Congress to fund its digital transition, Lawson said, and now “we are also in a very difficult fiscal environment.” He said Senate Appropriations Committee had approved $50 million for FY 2003 for PTV’s DTV through CPB, 100% increase over previous year and $51.8 million for Public Telecom Facilities Program (PTFP) for digital conversion. Lawson said public broadcasters were working with many sources for funding not only for conversion but also for digital content. Senate appropriations bill would increase PTV’s education funding and ATPS has been able to get language in farm bill that would open up existing grants program for PTV stations, he said. Lawson defended PBS decision to relax underwriting guidelines, step that has led critics to charge system with permitting “creeping commercialism.” “To me the key is that we are not interrupting programs,” he said. At June 23 board meeting, PBS board decided to allow corporate underwriting spots to depict multiple products, corporate spokespersons’ voicing support for public broadcasting, toll-free numbers, Web addresses. Stations’ viewer surveys have shown that program interruption is “key differentiator” in terms of station underwriting, Lawson said: “Viewers aren’t particularly concerned about the length of the message or the message but really about whether or not the program is interrupted.” PTV has had its critics from day one, he said: “Some think we are too commercial. Some think we are not entrepreneurial enough. The bottom line is that stations have to maintain a trust relationship with their communities.” Membership is largest source of funding for PTV, Lawson said, and he trusted local stations to “find the right balance between raising funds and remaining noncommercial.” APTS board was considering revision in voluntary guidelines for stations’ use of their proposed digital ancillary and supplementary guidelines, he said. Revised guidelines may be announced in late fall after they're “fully vetted” within system, he said. Voluntary guidelines were adopted in wake of FCC decision to permit PTV stations to solicit ads on their nonbroadcast digital ancillary and supplementary services. That decision has come under attack especially from Republican members of Congress. At recent hearing, House Telecom Subcommittee Chmn. Upton (R-Mich.) said although FCC believed its decision would enhance PTV’s fund-raising potential, several committee members “have expressed concerns that the FCC’s decision will increase commercialization of public broadcasting to the detriment of its principal mission.”
Country of origin cases
Iridium asked FCC to amend rules expeditiously that require operating Big LEO systems in 1615-1626.5 MHz band to employ TDMA/FDMA techniques rather than CDMA techniques. Changes would be consistent with Commission’s original plans for Big LEO spectrum, Iridium said. When agency first contemplated authorization of Big LEO systems in 1.6-2.4 GHz band, it proposed that certain frequencies used by CDMA operators be reallocated to TDMA/FDMA operators if none or only one of CDMA systems actually was deployed. Seven years later only one CDMA system has entered service and concerns that previously led Commission to decline to adopt an automatic redistribution of 1.6 GHz band have been rendered moot by passage of time, Iridium said. Grant of petition would allow Iridium to meet current and increasing demand for existing and new communications services in U.S. and abroad, including voice and data services to rural areas and secure, real-time communication services to U.S. military in remote areas of conflict, Iridium said.
Radar detector industry petitioned FCC Fri. for partial reconsideration of decision that required those devices to meet Part 15 limits on emissions in 11.7-12.2 GHz band. While saying they agreed with order’s technical provisions (CD July 22 p1), group of 6 radar detector manufacturers argued that implementation schedule was “infeasible, unprecedented and unnecessary.” Commission required that radar detectors made domestically or imported into U.S. comply with new technical rules starting 30 days after publication in Federal Register. All radar detectors marketed in U.S., including those sold at retail, must start compliance within 60 days of that publication. Members of Radio Assn. Defending Airwave Rights (RADAR) instead want FCC to require compliance by Dec. 31 “and that the distribution pipeline be left to empty at its own speed.” If Commission still decides to require date for retail compliance, RADAR proposes July 1, 2003, deadline. Current timelines could “shut down” industry, it warned. Rules were designed to prevent interference to VSATs that had been traced to radar detectors. Petition for more time for compliance drew sharp criticism from Satellite Industry Assn. (SIA) Fri., with Exec. Dir. Richard DalBello saying he was “flabbergasted” by request.
CTIA refiled petition last week calling on FCC to eliminate “unnecessary regulations” in variety of wireless policy areas. CTIA said filing still was relevant even though U.S. Appeals Court, D.C., had backed off on issue that arose in Fox TV Stations v. FCC decision (CD Feb 20 p1). Last month, D.C. Circuit said it was “better to leave unresolved” interpretation of phrase “necessary in the public interest” that it used in original decision to ascertain whether FCC rules on national media ownership caps should be retained (CD June 24 p1). Some had interpreted that language to mean higher standard for retaining FCC rules under biennial review proceedings. Citing original D.C. Circuit decision in Fox, CTIA had made filing at FCC in May that sought elimination of “unnecessary” regulations in areas ranging from wireless local number portability to Enhanced 911. CTIA had included policies it said didn’t meet strict test of original Fox ruling of being necessary to meet public interest. “It is important to note that the D.C. Circuit did not repudiate the panel’s original analysis,” CTIA said in July 25 filing. “Rather it simply refrained from addressing the issue. Indeed, the panel’s original interpretation remains consistent with the statutory language contained in Section 11,” which covers public interest considerations. Citing extent to which Sec. 11 of Communications Act covered regulations “no longer necessary in the public interest,” CTIA said that language must be interpreted as against keeping regulations it wanted FCC to review. “Even if the Commission rejects the position that Section 11 heightens the standard for retention of rules, it must concede that imposing unnecessary burdens on carriers and introducing market efficiencies without corresponding social benefits does not serve the public interest,” CTIA said. It reiterated call that FCC “act quickly” to review all regulations affecting wireless carriers and to meet its statutory mandate to “repeal or modify” rules that aren’t “necessary in the public interest.”
FCC Wireless Bureau rejected challenge to revisions it made in lower 700 MHz auction procedures, saying statutory- mandated changes didn’t amount to new bidding rules under Sec. 309(j) of Communications Act. One of largest lower band bidders, Spectrum Holdings, petitioned FCC for reconsideration of decision to let previously qualified bidders select licenses to pursue other than ones originally identified in their applications. To select additional licenses, bidders must have provided information to FCC by July 26, with supplemental upfront payments due in same time frame. Legislation Congress passed in June indefinitely postponed most of 700 MHz auctions set for June 19, with exception of moving smaller C- and D-block bidding in lower band to date between Aug. 19 and Sept. 19. Law stipulated that only bidders that could participate in remaining auction were those that qualified to take part in original lower 700 MHz band auction. Bureau allowed qualified bidders to leave auction altogether and receive return of down payments and those that remained to select additional licenses and supplement upfront payments. Spectrum Holdings contended that part of notice that allowed selection of additional licenses and augmenting of payments violated Sec. 309(j) of Communications Act, which mandates that Commission allow adequate period before bidding rules are issued to permit notice and comment on proposals. In order released late Thurs., bureau said it previously sought comment on process of having qualified bidders set initial maximum eligibility by selecting licenses and making upfront payments. That procedure wasn’t changed in revised public notice, it said. “Rather the bureau merely modified the deadlines by allowing qualified bidders to select additional licenses and make supplemental upfront payments within a specific time period.” Bureau said: “These modifications do not amount to the issuance of new bidding rules within the meaning” of Sec. 309(j). It said its use of notice and comment period when creating mechanism for initial bidding eligibility didn’t require further notice and comment “before the bureau modifies deadlines for selecting licenses or submitting upfront payments, when other relevant concerns make such modifications appropriate.” Law itself that postponed most of 700 MHz auctions, except for licenses up for bid next month, doesn’t “limit the pre-existing discretion” that FCC has under Sec. 309(j) to modify dates for selecting licenses and making payments without comment, it said. “Recognizing that the bureau needs flexibility and discretion in this area in order to respond to changed circumstances and conduct an orderly auctions process, the Commission has granted the bureau broad authority to administer competitive bidding procedures,” order said. It reiterated bureau position that procedural changes were needed because bidders qualified to take part in original 700 MHz lower band auction couldn’t have anticipated changes in subsequently passed legislation when they made initial upfront payments. “The removal of 3 of 5 originally available license blocks significantly changed the availability of lower 700 MHz band spectrum licenses for the near future,” bureau said. “In light of the extraordinary changes in Auction No. 44 required by the Auction Reform Act, permitting qualified bidders to select additional licenses and supplement upfront payments may be the only way to permit a party that currently most highly values a particular license to bid on and win it in the auction, thereby promoting statutory objectives.” Thomas Jones, who heads Spectrum Holdings, said company still disagreed with FCC’s interpretation of law, but said company hadn’t made decision on whether to pursue legal action.
TV Bureau of Advertising (TvB) has revised its spot TV projections for 2002, raising total to 7% growth after downgrading predictions to growth of 2.5-5.5% following Sept. 11 terrorist attacks. Original TvB forecast, made Sept. 6, had been for 4-5% growth. TvB will host Sept. conference in N.Y. during which projections for 2003 and 2004 will be made.
FCC affirmed Wireless Bureau decision that pinpointed 911 selective router as demarcation point for dividing Enhanced 911 implementation costs between wireless carriers and public safety answering points (PSAPs). In letter last year to King County, Wash., bureau clarified that proper line for funding between carriers and PSAPs was input to 911 selective routers that ILECs maintained. Those routers receive 911 calls from LEC central offices and send them to specific PSAP that serves area of emergency caller. Nextel, Qwest Wireless, Verizon Wireless and VoiceStream asked full Commission to reconsider bureau decision. Order, adopted May 14 but not released until Thurs., said said drawing line for E911 cost allocations would speed “rollout of wireless E911 services by helping to eliminate a major source of disagreement between the parties so as to facilitate the negotiation process.” Bureau decision responded to inquiry from King County whether carrier or PSAP had responsibility for funding E911 Phase 1 network and database components and interface of those elements with existing E911 system. Bureau stressed it favored negotiation between parties as best way to resolve cost-allocation disputes. In petition for reconsideration, carriers argued better demarcation point was wireless carrier’s mobile switching center. They said bureau decision deviated from cost allocation for wireline E911 and discriminated against wireless carriers. Carriers said original decision constituted new bureau-created policy at odds with existing orders and exceeded bureau’s delegated authority. Decision by full FCC rejected carrier arguments that demarcation point went against existing regulatory language but said majority couldn’t be reached on delegated authority question, meaning issue was moot because FCC addressed merits of petitioners’ claims. FCC Comr. Copps said in separate statement he agreed with underlying bureau decision: “However, I believe that the bureau acted in violation of our delegated authority rules. Because the Commission was not able to reach majority on whether the bureau violated our delegated authority rules, that portion of the order was not adopted. The resulting order, which holds that the delegated-authority question is moot, but does not address whether the rule was violated, allows me to support this item.” Copps didn’t disclose which other commissioner prevented majority ruling on delegated authority question. In other areas, Commission said its E911 rules were ambiguous as to specific duties of parties in rolling out wireless E911. They didn’t pinpoint at what point in 911 network carrier must bring required data or at what point in network PSAP must be able to receive and use that data, agency said. It said bureau correctly interpreted regulatory provisions in light of existing network configurations. Analysis of Phase 1 information to ascertain which PSAP should respond to call was “central to a wireless carrier’s obligation to ‘provide’ emergency wireless E911 services,” FCC said. “Because it is the 911 selective router that performs these functions, the bureau rightly determined that a wireless carrier must deliver the Phase 1 data to the 911 selective router” to meet regulatory obligations, it said. Router is most appropriate cost-allocation point because “until the proper PSAP has been identified, no PSAP can ‘receive’ and ‘utilize’ the location data” under E911 rules, Commission ruled.
Bush Administration Tues. released long-awaited 3G viability assessment under which Defense Dept. agreed to clear most of 1710-1755 MHz but said freeing additional 15 MHz beyond that was untenable between now and 2008. Result is that report finds way to clear 90 MHz of spectrum for advanced wireless services at 1.7 GHz and in 45 MHz of 2110- 2170 MHz, which is occupied by nongovt. users. That’s less than 120 MHz that NTIA and other Executive Branch agencies had left on table last fall for 3G evaluation, after taking 1770-1850 MHz occupied by DoD out of consideration following Sept. 11 attacks (CD Oct 9 p3). While spectrum is less than originally sought by industry, private sector and govt. officials at Commerce Dept. briefing touted outcome as providing certainty that allocation decisions and auction could be held in 2004-2005 time frame. Also Tues., Commerce Dept. released draft bill to create spectrum relocation fund to pay incumbent govt. users for relocating and modernizing equipment. Commerce Secy. Donald Evans said 3G assessment strikes “a necessary balance between our country’s economic growth and national security, as well as public safety.”
PASADENA -- Contradicting growing alarm by some other TV executives, NBC Entertainment Pres. Jeff Zucker told TV critics here that TiVo technology for skipping commercials posed no imminent threat to the industry: “I love TiVo and there’s probably a lot of people in this room who do, too. But there’s not a lot of evidence there are a lot of people in the rest of the country who will embrace it. I think the worry has been overstated. It’s not going to affect us in the next few years. I don’t believe it’s an issue outside this city.”
Commerce Secy. Donald Evans and senior FCC officials plan to release long-awaited 3G viability assessment at news conference today (Tues.). As release has neared, speculation has mounted that final report on how to make at least 90 MHz of spectrum available for advanced wireless services would include provisions under which Defense Dept. would vacate 14 of 16 protected sites, several sources said. NTIA evaluation of govt.-occupied spectrum that could be vacated for advanced wireless services has been hung up, in part, by 16 protected sites in 1710-1755 MHz band now occupied by federal operations such as fixed microwave, tactical radio relay, aeronautical mobile stations. Wireless industry has expected viability assessment to free up close to 90 MHz for 3G- related services, rather than 120 MHz originally sought by carriers. Sources have said NTIA report is likely to focus on 2110-2155 MHz and 1710-1755 MHz, with some spectrum to be made available in 2004 and rest under longer timeline. NTIA interim report on 3G spectrum released last year had outlined 16 protected areas, including sites in major cities such as N.Y., Boston, Philadelphia, Baltimore, L.A., Miami, Dallas. Understanding brokered by NTIA with DoD apparently outlines way for military users to relocate from 14 of those sites, including movement of not just tactical radio relay but satellite-related services, source said.