FCC radio ownership limits are exceeded in 104 cities, or 35% of U.S. markets, said a report arguing against media deregulation. Among large broadcasters, Clear Channel most often exceeds caps, said the report, paid for by the Benton Foundation and the Social Science Research Council. Stations whose owners exceed limits detract from programming diversity because they're less likely to air jazz and classical music, it said: “Instead, they focus on a relatively narrow range of format categories.” Radio serves diverse audiences including minorities, NAB said in comments on the FCC media ownership review. Comments began trickling in from industry ahead of a Mon. deadline. “Radio programming diversity has continued to increase since” the Telecom Act of 1996, NAB said, stumping for “continuing relaxation of the radio ownership rules.” The group asked the FCC let a company own more than one TV station in any market and permit cross- ownership of newspapers by broadcasters. Broadcasters joined NAB in asking the FCC to ease ownership rules. The ban on a company’s owning 2 stations in a city is outdated, Gray TV said: “The Commission should eliminate the duopoly rule as a relic of the pre-Internet past, or, at the very least, adopt a waiver policy that recognizes today’s marketplace realities.” The Commission should allow ownership of 2 TV stations when their combined audience share would be 30% or less and satisfy certain FTC merger guidelines, said Hearst- Argyle. It called a cross-ownership ban unnecessary.
Notable CROSS rulings
The La. Supreme Court agreed to hear an appeal by the city of Lafayette of a state appellate court ruling striking down a city bond ordinance to raise $125 million to finance a municipal public telecom network. The appeals court, ruling on a suit brought by a city resident, said a provision in the ordinance allowing market-rate loans between the city’s municipal electric utility and its telecom enterprise to cover bond payments was an illegal cross-subsidy of the telecom venture by the electric utility. The city argued that the appeals court misinterpreted the antisubsidy provisions of the state Local Government Fair Competition Act and said its financial arrangements weren’t a subsidy as defined by the law.
News Corp. got a 24-month cross-ownership FCC waiver to keep WWOR-TV N.Y.-Secaucus, N.J., and the N.Y. Post. Comrs. Adelstein and Copps voted against the action, which also includes continuing a waiver involving the newspaper and WNYW N.Y. The waivers mean News Corp. won’t have to choose between closing the paper or “a forced sale of a media interest at an artificially depressed price to achieve compliance with the multiple ownership rules,” said an order. The company had already escaped rules for WNYW but had to reapply because News Corp. Chmn. Rupert Murdoch wanted to transfer control of the properties from himself to a unit of the media company in a recapitalization that the firms hope will trim costs. Further, News Corp. can run KFCT Fort Collins, Colo., as a satellite station of KDVR Denver. KFCT is located in an underserved area with a signal that doesn’t overlap with the Denver broadcaster, said the order. WWOR-TV was operating under a previous temporary cross-ownership waiver, said a broadcast lawyer.
Supreme Court justices seemed receptive Tues. to arguments by operator Metrophone that it should be allowed sue a carrier to recover unpaid payphone charges. The court was hearing oral arguments in a case also involving Global Crossing. Legal experts said the case could have much broader implications, especially if the high court agrees with Global Crossing and significantly restricts private enforcement of the Communications Act.
LOS ANGELES -- Broadcast-newspaper cross-ownership drew criticism here Tues. at the start of the first FCC field hearing on that and other hot-button media consolidation issues. Rep. Watson (D-Cal.) said the FCC shouldn’t grant a Tribune request to extend its cross-ownership waiver involving the L.A. Times and KTLA, vowing to solicit opposition. Tribune declined to comment. KTLA, whose license comes up for renewal in 2007, isn’t operating under a waiver, a broadcast official said.
Antipiracy advocates need to work harder on research, law enforcement and cross-industry coordination, NBC Universal Chmn. Bob Wright told the U.S. Chamber of Commerce Fri. Media companies have been the “canaries in the coal mine” of crimes against intellectual property -- but piracy should command the attention of every major U.S. company CEO, he said: “At risk is every sector of our economy where creativity, innovation and invention drive the creation of economic value and high-wage jobs.”
An anonymous hold has been placed on the renomination of FCC Chmn. Martin for another term, Senate sources said Fri. But committee sources said it’s likely the Senate will vote on Martin’s post next week. The nomination was “hotlined” Thurs. -- a procedure in which senators’ offices are contacted for an up-or-down vote. An objection was lodged during that process, halting movement toward a unanimous consent vote, Senate sources said. A hold is a common, though sometimes controversial, mechanism members use to exert leverage for issues, sometimes unrelated to the nomination, they are concerned about.
The FCC should dismiss a petition to deny Univision license transfer requests and grant those applications, attorney Scott Flick said on Univision’s behalf. Opposition to Univision’s transfer consists of “broad, unsubstantiated allegations” that fail to “provide any basis for denying the applications or designating them for a hearing,” Flick, of law firm Pillsbury Winthrop, said in a filing Sept 20.
As more consolidation occurs in the telecom marketplace, 2007 will be a “very interesting year to watch” for BPL, said Mich. PSC Comr. Laura Chappelle, who headed the NARUC BPL Task Force. Because of new rules and various state laws that enable consolidation, many of the competitive players may not be around, she told us: “You are going to have different types of players.”
Lafayette, La., asked the La. Supreme Court to overturn a state appeals court decision striking down a bond ordinance that would finance a municipal Wi Fi broadband project by the Lafayette Utilities System, eventually connecting with all the city’s 60,000 businesses and households. The appellate court, ruling on a suit against the bonds by Lafayette resident Elizabeth Naquin, reversed a lower court decision upholding the ordinance, ruling in July that provisions for advance payments violate a state ban on cross-subsidies of municipal telecom ventures from other municipal revenue. The city said its ordinance was crafted to avoid legal pitfalls that stopped its first bid to issue bonds for the Wi Fi project. It said the appeals court misinterpreted both the letter and spirit of the law.