FCC Comr. McDowell laid out ways the FCC could help industries from broadcasters to wireless by boosting 700 MHz spectrum use and broadband deployment and promoting newer technologies and parental TV controls. Speaking to NAB members, he pushed to hold the 700 MHz auction soon, voicing support for several rules circulating on the 8th floor that could help radio stations (CD March 1 p1). McDowell became the first commissioner to make a public link between the XM- Sirius merger and the FCC media ownership rulemaking, saying both proceedings likely will involve examination of how new technologies affect media.
Notable CROSS rulings
HARRISBURG, Pa. -- Media consolidation critics again clashed with broadcasters and industry advocates at the FCC’s latest media ownership hearing, held here Fri. Unlike L.A. and Nashville hearings attended by droves of TV and music industry workers, no industry dominated comments from the public. Majority commissioners opened with brief comments, and Comrs. Copps and Adelstein made longer speeches. Trying to set a tone, Comr. Copps criticized media coverage of state legislatures. “There are only about 500 reporters covering statehouses across the country,” he said: “That works out to about 10 per state, with only a handful, sometimes as few as 2, in some smaller states.” Further newsroom consolidation will mean even fewer statehouse reporters, he said. Union representatives echoed Copps during a public comment period.
Rules that prohibit exclusive programming contracts by cable operator-owned networks are up for review in a proceeding the Commission opened late Tues. The FCC’s program access rules are set to expire in Oct., and the Media Bureau is seeking comment on how they have played out since the Commission last extended them in 2002. At that time, then-Comr. Martin was ambivalent about the rules, calling their necessity “a very close call.” Those who oppose the rules, such as large cable operators and NCTA, will argue that during the intervening years the rise of DBS operators, phone companies’ TV services and online video distributors has eliminated the need for such rules. “Continued regulation of the cable operators’ vertical relationships is no longer necessary,” Comcast said in Dec. in the video competition docket, alluding to Martin’s 2002 statement.
The FCC media ownership review may run longer than expected (CD June 26 p5), said agency and industry officials. A vote on a final order may not come until 2009. Among steps Chmn. Martin vowed to take before an order makes the 8th floor rounds are 4 field hearings on ownership, 2 localism hearings, a report on broadcast localism and 10 economic studies. His Feb. 1 declaration to a Senate Commerce Committee hearing that he hopes to finish media hearings this year spurred industry and FCC speculation that an order may not come before the 2008 election. Media activists and broadcasters had predicted the rulemaking would be wrapped up by mid-2008.
Consumer groups and phone carriers criticized proposed Cal. PUC rules for statewide video franchising under a 2006 franchise reform law (Case R-06-10-005). Consumer group TURN said the plan lacks safeguards against cross-subsidy of video services, provides no opportunity for parties to protest video franchise applications and limits parties’ access to essential data on video providers. TURN said the proposed rules “have the direct result of eliminating meaningful participation by consumers and consumer representatives” in video franchising. The Greenlining Institute echoed TURN’s concerns about lack of consumer input. It said there are ways to permit protests by consumer groups despite a brief statutory timeline for approving franchises. Verizon said the reporting requirements meant to enforce buildout standards are overly broad and in effect would require all Verizon affiliates to report on all broadband activity, including wireless. AT&T agreed that the reporting requirements are excessive. It said the reports would “require the submission of extensive broadband, video, and low-income household data” that goes far beyond what was written into the franchise reform law.
CBS was accused of violating federal law by refusing to meet with an online video distributor that wants to deliver local TV stations’ signals to Internet-connected computers. Virtual Digital Cable (VDC) made the allegations in a retransmission consent complaint filed at the FCC. VDC wants to carry CBS’s WBBM-TV Chicago but will limit distribution to VDC subscribers in the area. VDC says CBS hasn’t responded to its requests to discuss carriage terms. That prompted the Northbrook, Ill.-based operator to invoke the 1992 Cable Act, saying that as a multichannel video programming distributor (MVPD) it’s entitled to good-faith negotiations with broadcasters. The Commission should order CBS “to immediately engage in meaningful discussion and negotiation of retransmission consent,” VDC said in the complaint. The company is seeking a similar ruling against Time Warner over Turner Networks programming (CD Jan 16 p7).
The EU seems bound for consensus on an international mobile roaming rule, though key provisions remain fuzzy, European Parliament (EP) members and an EC official said Tues. A joint hearing by the EP internal market & consumer protection and industry, research & energy committees found strong support -- even from some mobile operators -- for wholesale and/or retail price caps. Unresolved issues include how to set caps and whether they'll also apply to cross-border SMS and data transmissions.
A bill by House Republicans that would educate the public about the DTV transition (CD Jan 23 p11) seems designed to retain the new minority’s influence over the issue. Commerce Committee Ranking Member Barton (R-Tex.), Rep. Upton (R-Mich.) and former Speaker Hastert (R-Ill.), who Tues. announced he has joined Mitt Romney’s exploratory presidential committee, are sponsoring the bill, which would boost consumer outreach through the FCC, broadcasters, cable, satellite and CE retailers about the Feb. 2009 analog cutoff.
Advocates of ending the FCC newspaper-broadcast cross ownership (NBCO) ban got a lift from Chmn. Martin. Comments he made at a Wed. press briefing echoed those of many broadcasters in the Commission’s media ownership review (CD Jan 18 p7). “All other rules have been updated since” the mid-70s NBCO ban, he said. The FCC’s 2003 lifting of the rule was backed by 3rd U.S. Appeals Court, Philadelphia in its remand of the agency’s last media ownership rulemaking, he said. “The court there agreed with the Commission that an outright prohibition was no longer necessary,” Martin said: “So the Commission is going to have to come up with some new rule.” He hopes to hold the 3rd of 6 FCC field hearings on revamping media ownership rules in Feb. or March, he said. He didn’t say where it will be; industry officials have said it may be in Me. Ten media ownership studies commissioned by the FCC will be ready in the spring, Martin said. Most filing reply comments in the media ownership review agreed the NBCO ban is outdated. Filers, including Belo, Media General and the Newspaper Assn. of America, criticized those who argued that NBCO rules should stay because burgeoning online media hasn’t shrunk the role of broadcasters and print publications. “The vast majority of commenters providing empirical data and reasoned analysis support elimination of the flat ban on newspaper-broadcast cross-ownership as well as relaxing of the local TV cross-ownership rule,” Belo said, citing Cox, Gray, Gannett, Hearst-Argyle, Nexstar, Sinclair and Tribune. “A small handful of parties persist in attempting to persuade the Commission that the media marketplace has not changed in any meaningful respect over the past three decades,” Belo said. Among those disagreeing are a slew of trade groups saying they represent “free community papers” and the National Assn. of Black Owned Broadcasters. Those arguing for overturning the NBCO are “generally ignoring the historic waves of consolidation,” said Mid-Atlantic Community Papers Assn. The African- American broadcasters group said the FCC shouldn’t relax ownership limits, and asked the agency to “continue to urge Congress to reinstate the minority tax certificate policy.” That’s just what the FCC has done, telling lawmakers several times over the years that it would back restoration of the tax credit, Martin said. Ultimately, it’s Congress’s decision, Martin said.
European Parliament (EP) members reintroduced a controversial defamation provision into proposed amendments to a law on noncontractual cross-border disputes, including media defamation claims, the EP said Thurs. “Rome II” -- which aims to make it easier for citizens of EU countries to litigate trans-border torts -- has been undergoing overhaul for more than 3 years, the EP said. The law of the country where the harm occurs, not where the harmful activity arises, usually governs, the EP said. The Jan. 18 plenary vote approved a report by legal affairs committee official reporter Diana Wallis reinserting an amendment subjecting media outlets in defamation cases to the law of the country where a publication or broadcast is mainly directed, or, if that isn’t apparent, the country where editorial control is exercised. Govts. oppose having the rules on defamation included within the regulation’s scope, the EP said. The text likely will go through a conciliation procedure in which govts. and MEPs, equally represented, will look for compromise language. The EP noted that EC Vp Franco Frattini said before the vote that “there is no way” the defamation rules will get through the Council of Ministers.