Adelstein Wants Gabelli Barred from FCC Auctions

Anyone found to defraud the E-rate program is barred from participating, Adelstein said afterward in a talk with reporters, so why shouldn’t “someone who violates the DE program” get similar treatment? Gabelli is expected this week to settle a DoJ civil suit, and Justice should stipulate a ban on his participation in auctions in the consent decree accompanying such a settlement, Adelstein said. It might even be proper for the FCC to suggest such action by DoJ, he told reporters.

Adelstein said a ban probably couldn’t be instituted for the Aug. AWS auction. He didn’t know how long a prohibition should last but doesn’t think Gabelli should ever participate as a DE, he said.

On another issue, Adelstein said the FCC could act right now to expand minority access to the media industry. Among those steps, he said: (1) “Breathe new life into the station solicitation rule” in the context of the media ownership proceeding. (2) In digital radio, encourage broadcasters to offer time brokerage agreements with minority and under- represented groups. (3) In the multichannel video market, encourage use of leased access “to help unaffiliated programmers to get on cable systems.” Media consolidation has decreased minority ownership opportunities, he said. “We need to hold a hearing on minority ownership of the media,” Adelstein said in response to a question.

FCC Comr. Copps addressed MMTC earlier that day, saying broadband access “has added another layer to the digital divide” because census data show about half as many minorities have broadband at home as non-minorities. Boosting concern is an ITU ranking released last week showing the U.S. slipping from 16th to 21st in digital penetration worldwide. “If we want to continue to lay claim to the United States as the land of opportunity, we'd better find a way to make the U.S. the land of digital opportunity,” Copps said. The FCC could jump-start the process by “producing data and analysis that really take the measure of the challenges we face, that ask the hard questions… not those silly Section 706 reports we've put out in the past.”

Copps, Adelstein Urge ‘Non-Discrimination’ Principle

Adelstein joined Copps in urging expansion of the FCC’s 4 net neutrality principles to include one barring bias in the carriage or treatment of Internet traffic. Copps was the first to bring up the idea of adding a “nondiscrimination” principle. Without saying so directly, both commissioners indicated the 5th principle has been discussed in the FCC’s consideration of the Adelphia merger.

The net neutrality principles, which debuted last summer (CD Aug 8 p1), were among conditions set by the FCC in approving the SBC-AT&T and Verizon-MCI mergers. They address matters such as consumers’ right to use any applications and access any content, but don’t include the proposed bar on discriminatory handling of traffic that has emerged as a key part of the net neutrality debate.

“As one who pushed very hard for last summer’s… Internet principles, I believe it is time to go beyond that and commit the industries and the FCC to a specific principle of enforceable nondiscrimination, one that allows for reasonable network management but makes it clear that the promise of the Internet is not going to be shackled in its adolescence,” Copps said. Adelstein told conferees he “continues to urge the Commission to add a principle of non- discrimination… to the quartet of national principles.”

Copps said minority entrepreneurs like those in the crowd should care about net neutrality because the Internet is “an especially potent business force for minority groups and niche communities.” But minorities should “be very cautious of government regulation akin to net neutrality,” warned NCTA Senior Vp Dan Brenner. Speaking on a panel, Brenner said he doesn’t think net neutrality is “the right road to develop diversity on the Internet.”