News Corp.’s Fox petitioned the FCC late Wed. for a waiver of the newspaper-broadcast cross-ownership rules to encompass ownership of a 2nd TV station in N.Y. Fox has operated WNYW (Ch. 5) N.Y., while News Corp. operates the N.Y. Post. In 2001, the Commission granted Fox a temporary waiver for common ownership of the Post and a 2nd station WWOR-TV (Ch. 9) N.Y.-Secaucus. But the 3rd U.S. Appeals Court, Philadelphia, remand of many of the FCC revised ownership rules (CD June 25 p1) and the uncertainty of any further proceedings make it difficult to continue operations, News Corp. said. “This continuing period of uncertainty fails to serve the interest of the public and threatens the continued development of the Post,” News Corp. said. News Corp. can’t “rationally” continue to invest in the paper’s future without the certainty of modification of the permanent waiver to include Ch. 9, it said. If the Commission doesn’t modify the permanent waiver, it should extend Fox temporary relief from the cross-ownership rules until 24 months after the remand proceedings are finally concluded, News Corp. said.
Notable CROSS rulings
The FCC’s Office of Engineering & Technology is “working hard” to complete its broadband over power line (BPL) work for consideration at the Oct. Commission meeting, Deputy Chief Bruce Franca said. At the United Power Line Council’s (UPLC) annual meeting in Arlington, Va., Tues, he said “we are real confident that we are going to have an item for October.” State regulators, however, told utility executives they still had “limited” knowledge of the technology, and said it was up to the industry to educate them so they have a better grip on regulatory issues. They said the BPL task force set up by NARUC would issue its findings in Nov.
The 3rd U.S. Appeals Court, Philadelphia, approved in part the FCC’s petition (CD Aug 11 p9) to reconsider putting a hold on new radio ownership limits. The court approved a partial lifting of the stay to the rules allowing the use of Arbitron Metro markets to define local markets, including noncommercial stations in determining the size of a market. It also allowed attributing stations whose advertising is brokered under a joint sales agreement to a brokering station’s permissible ownership totals, and imposing a transfer restriction. The FCC had argued the stay forced the FCC to define all radio markets using “flawed contour-overlap methodology.” All other aspects of the FCC’s motion for rehearing including numerical limits on local radio ownership and the AM “subcap” were denied. Separately, the court denied Tribune Co.’s motion for a partial lifting of the stay of the FCC’s cross-ownership rules.
After 14 months of meetings, an interindustry group filed a proposal with the FCC late Fri. to reform intercarrier compensation. The plan attempts to unify the disparate intercarrier payments systems now used by the telecom industry, including access charges, reciprocal compensation and settlements. It would phase out these payment mechanisms and replace the lost revenue through new, more unified mechanisms with safeguards for rural carriers.
The Intercarrier Compensation Forum (ICF) briefed FCC staff Fri. on a long-awaited plan to replace the industry’s varied compensation methods with one system. Briefings were given to the Wireline Bureau and FCC Chmn. Powell’s office. “The chairman is very supportive of those companies that were able to stay in the process and work toward a cross-industry consensus,” said Powell aide Christopher Libertelli. Although FCC officials wouldn’t reveal what was said, the briefings -- the one with the Wireline Bureau lasted 1-1/2- hours, Powell’s was shorter -- indicated the group finally has reached agreement after meeting for over a year. The ICF is expected to file the proposal with the agency sometime next week, once the document is formally written. No one on the ICF would confirm the agreement. The ICF’s size has dwindled over the past year as disagreements surfaced over various parts of the proposal, which at one point was expected to have a bill-&-keep aspect. AT&T, SBC and Level 3 are among the remaining members. One source said the proposal consists of 3 pieces: (1) Rate restructuring. The plan proposes a 2-step process that would begin July 1, 2005, with a 3-year transition of intercarrier compensation rates down to “very close to zero,” moving even closer to zero by 2011, the source said. He said the plan provides protections for rural carriers during the transition period. (2) Network interconnection. The proposal outlines “very detailed rules” on how carriers interconnect and pass traffic between each other’s networks. That rule would become effective July 1, 2007. (3) Universal service. The plan creates new explicit support mechanisms and broadens the contribution base by assessing the universal service based on end-user telephone numbers and/or network connections. “The plan contains significant concessions toward rural carrier interests and places caps on any potential rate increases that end-user subscribers may see,” the source said.
MONTREAL -- Nextel Senior Vp Robert Foosaner said a team of 50 is going over every facet of the final 800 MHz rebanding order and should make a decision in about a week, when Nextel plans to meet with leadership of the public safety community. Speaking at the APCO conference here in his first public remarks since the 256-page order was released late Fri., Foosaner said several aspects of the order were raising concerns for the carrier as a business. But he stopped short of indicating whether he would recommend Nextel agree to the plan.
MONTREAL -- FCC Chief of Staff Bryan Tramont said at the APCO conference here that, with the 800 MHz order out, the Commission will make the digital TV transition “the primary policy imperative of the agency” the next 6 months. Tramont, speaking on a panel of top FCC staffers, said Chmn. Powell is eager to establish a date certain for the transition, which will provide 700 MHz spectrum for public safety.
The FCC petitioned the 3rd U.S. Appeals Court, Philadelphia, for a rehearing late Fri. on the media-ownership decision. In June, the court remanded FCC’s major rules for cross-ownership of newspapers and broadcasters and the concentration of broadcast ownership in local markets (CD June 25 p1). The FCC filed the petition to push back the deadline for certiorari, under which the FCC can try to take its case to the Supreme Court, until after the presidential election, said Media Access Project Pres. Andrew Schwartzman.
The network layers model proposed by MCI is “fatally flawed” as a framework for new regulation of broadband and other services, said a report released by the New Millennium Research Council (NMRC) Tues. The authors said the proposal would “lock in the worst elements of existing telecommunications rules and discourage new industry investment.” They dismissed the MCI legislative proposal specifically, saying it did “not provide a deregulatory path as envisioned by the Telecommunications Act of 1996” and would be “at cross-purposes” with the Act’s goal of promoting broadband growth, creating competitive markets and benefiting consumers.” The NMRC is part of Issues Dynamics, which has Bell companies as clients.
Over a dissent from Comr. Copps, the FCC Thurs. eliminated the cellular cross-ownership rule for all rural markets, no matter the number of competing wireless carriers.