Federal Communications Commission (FCC)

A combined $1.8 million proposed forfeiture for Nexstar and sidecar operation Mission broadcasting over Mission’s station WPIX New York will likely create uncertainty about similar arrangements that other broadcasters use, though attorneys and the FCC say Thursday’s notice of apparent liability is narrowly targeted. “We stress that the decision we reach today is limited to the facts before us and the relationship between Nexstar, Mission, and WPIX,” said the NAL. On the other hand, “If you’re a broadcaster with a sidecar, you’re saying ‘uh oh,’” said Holland & Knight attorney Charles Naftalin. Nexstar said it will dispute the enforcement action “vigorously.”

State enforcers of net neutrality report no legal actions against ISPs more than five years after the laws took effect. A Communications Daily public records request showed that Washington state’s attorney general's office received 21 complaints related to net neutrality since enacting its first law in March 2018, but most were resolved informally. Half the states with such laws told us they hadn’t received complaints.

The full FCC -- with Commissioner Brendan Carr concurring in part -- proposed a $612,395 forfeiture against Nexstar for violating the 39% national ownership cap and taking de facto control of Mission Broadcast’s WPIX New York station without agency permission, said a notice of apparent liability issued late Thursday. The NAL also proposes requiring Mission within 12 months to either divest WPIX to a third party or apply to the FCC to sell it to Nexstar, which in turn would have to divest stations to come in under the national cap. The FCC “is prohibited from allowing a company to own or control broadcast stations that in total reach more than 39 percent of the national television audience,” said Chairwoman Jessica Rosenworcel in a brief statement released with the NAL. “The record here reflects a situation where a company exceeds this threshold. Unless and until Congress changes this law, it is the responsibility of this agency to enforce it.” Nexstar is a client of Wiley, Commissioner Anna Gomez's former law firm. Late last month, she received an ethics waiver that allows her to vote on enforcement items involving Wiley clients (see 2403150055). Nexstar’s relationship with Mission and WPIX was the focus of multiple court and FCC proceedings (see 2402130023), one of which was recently decided in Nexstar’s favor (see 2403210027). “NALs are not final decisions on the merits,” said Carr’s concurrence, in which he objected to the NAL citing aspects of Nexstar's relationship with Mission, which past FCCs approved, as part of the company's violations. “And I will keep an open mind as the FCC reviews the record in response to this document. Part of that will require the FCC to ensure that any remedies the agency finds necessary are ones that are appropriate given the procedural posture of this enforcement action.” Nexstar is “extremely disappointed in today’s action by the Federal Communication Commission regarding our relationship with WPIX-TV and we intend to dispute it vigorously,” said CEO Perry Sook in a release. “We believe the FCC has been misled by the often distracting noise in the media ecosphere and that it has completely misjudged the facts.”

Senate Commerce Committee Chair Maria Cantwell, D-Wash., told us Thursday she hopes to soon file legislation on a five-year renewal of the FCC’s lapsed spectrum auction authority without language authorizing sales of specific bands, despite Republican criticism during a Thursday hearing about omitting an airwaves pipeline. Senate Commerce ranking member Ted Cruz, R-Texas, and Communications Subcommittee ranking member John Thune, R-S.D., emphasized their 2024 Spectrum Pipeline Act (S-3909) as an antidote to concerns about the Biden spectrum strategy, as expected (see 2403200001). The hearing also revealed clear divisions among panel Republicans about continuing to explore 5G use of the 3.1-3.45 GHz band, which has drawn opposition from DOD and top Capitol Hill allies (see 2403200061).

A Thursday Senate Commerce Committee hearing is likely to highlight stark differences between panel leaders’ competing proposals for a spectrum legislative package, including whether it should mandate sales of specific bands before NTIA completes studies of those frequencies in keeping with the Biden administration’s national spectrum strategy (see 2403120006). Lawmakers’ apparent failure to reach a deal allocating additional money for the FCC’s affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program (see 2403190062) as part of a FY 2024 still-unreleased “minibus” spending package also ratchets up the pressure for a spectrum bill to use future auction revenue to pay for multiple telecom priorities, officials and lobbyists told us.

The FCC released the Further NPRM added to an order on a voluntary cyber trust mark program that commissioners approved 5-0 last week (see 2403140034). The final order includes numerous other tweaks to the draft, addressing security and excluding motor vehicles and related equipment. The order and FNPRM were posted in Monday’s “Daily Digest.”

FCC Commissioner Anna Gomez received a waiver of her White House ethics pledge that will allow her to vote on agency enforcement items involving clients at her former employer, prominent telecom law firm Wiley.

Advocates of additional federal funding for the FCC’s affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program were closely monitoring congressional negotiations Friday in hopes appropriators would reach a deal addressing both priorities as part of a second tranche of FY 2024 spending bills lawmakers want approved before midnight March 22. Rip-and-replace supporters voiced strong optimism that the next “minibus” package would include $3.08 billion to fully fund that program. ACP backers were, at least privately, growing less hopeful of a deal including their priority.

Senate Commerce Committee Chair Maria Cantwell, D-Wash., told us she's considering a clean FCC reauthorization bill that could pay for some of congressional leaders’ telecom priorities but wouldn’t necessarily mandate that the commission begin sales of specific frequencies. Senate Commerce plans a March 21 hearing on that and other spectrum policy issues, Cantwell told us Thursday ahead of a formal panel announcement. Cantwell's proposal would be in line with her pursuit of a slimmed-down measure (see 2403110066) drawing some elements of the stalled House Commerce Committee-cleared Spectrum Auction Reauthorization Act (HR-3565).

ACA Connects "will take a serious look" at challenging the FCC's "all-in" video pricing rules, which are set for a vote during the commissioners' March 14 open meeting (see 2402210057), ACA President Grant Spellmeyer said. Commissioner Geoffrey Starks in an address Wednesday at the ACA Connects policy summit (see 2403060005) mentioned the all-in pricing draft order, saying it would curb the “indecipherable asterisks and fine print” that make comparison shopping difficult. Starks said the order is consistent with the TV Viewer Protection Act, which requires that MVPDs disclose the all-in price at the point of sale and within 24 hours of sign-up and let customers cancel without penalty. The item is part of a larger agenda with broad support against junk fees and favors greater transparency for consumers, said Best Best's Cheryl Leanza. She noted the Ticket Act (HR-3950), requiring greater transparency in prices for event tickets, and the No Hidden Fees Act, (HR-6543), which prompts greater transparency in hotel and motel costs. Leanza represented local government clients in the proceeding. Cable and satellite TV promotional materials and bills would prominently display an all-in price that covers programming-related costs, including broadcast retransmission consent fees and regional sports programming charges, under the draft order. The requirement would be only for ads where price is mentioned, according to the draft. Operators would have nine months to comply after the approved order is released. In advertising for bundled services, providers should have the option to either provide the full price of the bundle, including video fees, or separately list the bundle's all-in video portion, NCTA told aides to the five FCC commissioners and FCC Media Bureau staffers, according to a docket 23-203 filing Thursday. NCTA urged that franchise fees and public, educational and government programming fees be excluded from the all-in pricing. It also urged that the commission to give providers a year to implement the all-in rules. Joining NCTA in the meetings were representatives of Comcast, Charter Communications and Cox. In meetings with aides to Chairwoman Jessica Rosenworcel and Commissioners Anna Gomez and Geoffrey Starks, Verizon reiterated its argument for exempting legacy plans no longer marketed or offered to consumers from the all-in pricing rule (see 2308010028). Pointing to existing federal transparency requirements as well as market forces, state cable associations said in a docket filing this week that the proposed all-in rules "rest on unsound legal footing, are unnecessary, and would produce results contrary to the Commission’s goals." Behind the filing were the Florida Internet & Television Association, Missouri Internet & Television Association, Ohio Cable Telecommunications Association and Texas Cable Association.