A Tuesday manager’s amendment revising text of the FCC Reauthorization Act likely paves the way for the bill's bipartisan advancement during a Wednesday House Communications Subcommittee markup, industry lobbyists told us. The bill, by House Communications Chairman Marsha Blackburn, R-Tenn., had drawn Democrats’ criticism during a July House Commerce Committee FCC oversight hearing (see 1707250059). Recently, work appeared to be progressing more slowly than expected and some expressed concern there weren't consultations aimed at compromise (see 1709220055). The markup is to begin at 1 p.m. in 2123 Rayburn.
Notable CROSS rulings
There was bipartisan support during a House Judiciary Crime Subcommittee hearing (see here) Tuesday for action to combat online sex trafficking, but no clear consensus on the right legislative path. Ranking member John Conyers, D-Mich, pushed former Rep. Chris Cox, R-Calif., to defend his opposition to a carve-out to current law to make it harder for criminals to fall back on Communications Decency Act Section 230 immunity protections for websites and platforms. IBM backed a related bill.
The U.S. Trade Representative office received more than four dozen comments on its investigation into the Chinese government's tech transfer, IP and innovation policies and practices, which many filers said put U.S. companies and others at a disadvantage (see 1708150039). Comments were filed last week. The interagency Section 301 committee plans a 9:30 a.m. hearing Oct. 10 at 400 E St. SW, with post-hearing rebuttal comments due Oct. 20. BSA|The Software Alliance said the Chinese government's IP-related and market access policies and practices prevent foreign businesses from operating there "efficiently, or at all" and fail to protect IP and trade secrets. It said barriers are "particularly acute" in telecom and IT industries such as cloud computing, cross-border data flows, requirements for disclosing a company source code, and enterprise standards. The Telecommunications Industry Association said China's drive to boost its domestic industry is "accompanied by a more concerning attempt to undermine and shrink the role of U.S. and other foreign technology firms." TIA worries more security rules to vet foreign tech may disadvantage U.S. exporters selling to China's markets and could set a precedent for other countries. The Information Technology and Innovation Foundation said Chinese policies: "induce forced" tech and IP transfer across many advanced-technology industries; engage in state-directed foreign direct investment and mergers and acquisition that targets foreign enterprises as part of an effort to move China 'up the value chain' in those sectors; and coordinate cyber-based IP and technology theft. CompTIA said China's aggressive implementation and use of technical standards to support industries like the ICT sector creates major interoperability issues, lack adequate safeguards to protect IP, and are developed without sufficient transparency and participation rights for foreign companies. It wants the USTR to encourage the Chinese government to adapt tech-neutral policies and allow the market to choose technology and standards. China has taken positive steps to amend civil law to make clear trade secrets are subject to civil IP protection, but the American Bar Association Section of IP Law said it's "a significant problem." The ABA said "enforcement measures are inadequate, penalties are weak, bad faith registrations are a problem, and systemic counterfeiting and widespread piracy still needs to be addressed," including stronger copyright protections and damage awards for patent infringement.
The ITU constitution is all about collective sharing and protection of spectrum, but rules on non-geostationary orbit (NGSO) satellite systems violate those fundamentals, Thomas Choi, CEO of satellite operator ABS, blogged Friday on LinkedIn. A few companies control almost all C- and Ku-band spectrum in the geostationary arc, boxing out new operators and emerging nations, and a second round of "this spectrum imperialism" is coming with NGSO constellations, Choi said. Rules have some NGSO operators rushing to launch a handful of satellites before ITU filings expire to try to cement ITU priority to NGSO spectrum in the Ka- and Ku-bands, and the rules need to be addressed at the 2019 World Radiocommunication Conference (WRC-19), Choi said. He said NGSO coordination is a major technical challenge and regardless of exclusivity and forced sharing issues, it's impractical that more than a few NGSO systems can share bands globally. Deep-pocketed companies from richer nations "stand to lock up the usable frequencies in the NGSO arc," and developing countries "will find themselves once again ‘locked out’ of the exclusive club of spectrum owning nations." Choi said WRC-19 regulation changes should include stipulations NGSO systems that lack landing rights in any specific country should design systems to shut off beams when they cross over nations where they lack licenses, if such requests are made by that nation.
House Communications Subcommittee Chairman Marsha Blackburn, R-Tenn., said she's pursuing her FCC reauthorization bill despite recent delays in work to revise a draft of the bill that circulated in July and was discussed at a House Communications oversight hearing (see 1707190051, 1707250059 and 1709220055). “Our proposed reauthorization bill includes relief from the newspaper/broadcast cross-ownership rule, a proposal that has had some bipartisan support in the past,” Blackburn said during a Media Institute event Wednesday evening. “We should at least be able to agree to this slight nod to reality as a first step in considering further reform.” Also at the event, Tegna CEO Dave Lougee said localism is an antidote to America’s increased tribalism, and broadcasters need regulatory changes to continue providing locally focused content. “Localism undermines division,” Lougee said. He's “optimistic” the FCC will loosen ownership restrictions to allow broadcasters to better compete with large companies in other media. “We have to move away from archaic rules and anachronistic market definitions,” Lougee said.
Some broadcast industry officials now don’t expect FCC action on petitions for reconsideration of the 2014 quadrennial review until after Chairman Ajit Pai has been reconfirmed. Since it's not known when or if that reconfirmation will take place, expected relaxation of newspaper/broadcast cross-ownership rules and other ownership policies may not occur until at least October, and possibly not until the end of 2017, said broadcast executives. Legislators deferred Pai’s reconfirmation when they confirmed Commissioners Jessica Rosenworcel and Brendan Carr in August (see 1708030060). Pai told us last week he hadn't begun considering the agency’s plans for October (see 1709060073).
Chairman Ajit Pai said when people call 911, they need to be able to get through and the FCC will do what it must to guarantee that occurs. Commissioner Jessica Rosenworcel said the FCC must do a complete report on hurricanes Harvey and Irma and communications failures seen in both storms. Both spoke Monday as the FCC marked the 16th anniversary of the Sept. 11, 2001, attacks with a workshop on improving situational awareness during 911 outages. It took place as Irma battered parts of the Southeast and as Florida started to deal with the damage inflicted by the massive storm. Public safety answering points and communications towers took a big hit, the FCC reported.
Cable franchise rules and cable system definitions seem increasingly irrelevant with growing numbers of broadband-centric MVPDs, but it likely would take petitioning from MVPDs before the FCC tried to address the disconnect, experts and industry officials tell us. An overbuilder to Service Electric Cable not having to follow franchise rules points to a flaw in those rules, said Director-Public Affairs Tim Himmelwright. A programming industry expert said Layer3's offering of cable service, while apparently not paying franchise fees in those markets, could lead to complaints. Layer3 didn't comment.
The health of radio, with its lack of deal-making, advertising slowdown and debt-burdened industry leaders, is expected to be the main topic of the 2017 Radio Show, which kicks off in Austin Tuesday, industry experts said. “Cumulus and iHeart and their need to restructure are continuously overhanging the industry” (see 1708090069), said MVP Capital founder and broker Elliot Evers. Media ownership rules such as AM/FM subcaps (see 1704100065) and FM translators will likely also be on the menu, but the financial state of the industry was foremost in the minds of the broadcast executives, attorneys and brokers interviewed.
The FCC shouldn’t approve Sinclair buying Tribune without first relaxing newspaper/broadcast cross-ownership rules, said newspaper publisher Steinman Communications in reply comments posted Tuesday in docket 17-179. Sinclair said in opposition comments (see 1708230061) it wants the FCC to rule on the deal after the outcome of expected action to relax ownership rules, Steinman said. The FCC shouldn’t allow Tribune's buyout without also removing barriers to newspapers making deals, Steinman said. “Steinman’s publications would face a strengthened, consolidated media competitor for audience and advertisers, while Steinman would be barred from similar market efficiencies.” The FCC should deny Sinclair/Tribune and Congress should hold hearings "to more thoroughly understand the media landscape and how critical independent local broadcast stations are in a democracy,” said Computer & Communications Industry Association President Ed Black in a news release on CCIA's replies filed in docket 17-179. "Sinclair has failed to show any tangible way" that the deal benefits the public interest, CCIA said. "Anyone who values decentralized government control, states rights and independent voices should oppose this merger that would harm citizens and weaken our democracy," Black said.