The FCC Wednesday pulled a draft emergency alert system order from the next day's commissioners' meeting agenda, after industry and agency officials said it was controversial. Five other agenda items also were pulled, though four were adopted on circulation.

Nexstar's $4.6 billion buy of Media General still is seen as likely to be approved despite the coming regime change at the FCC, said numerous broadcast attorneys in interviews. The question isn't if, but when, they said. Nexstar pushed for the commission to grant a waiver that would allow the deal to go through ( see 1607190058) despite the ongoing incentive auction. A company spokeswoman told us the TV station owner maintains its previous guidance to investors that the deal will be done by year-end.

The U.S. Court of Appeals for the D.C. Circuit surprised many on both sides of the fight over net neutrality rules and broadband reclassification when it upheld the FCC across the board. After Dec. 4, 2015, oral argument on industry challenges to the 2015 rules (see Part III of this Special Report, 1610130014), the D.C. Circuit issued its decision June 14. That ruling was the subject of two Communications Daily Bulletins that day (see 1606140010 and 1606140012) and many more later stories. This final Part IV of the net neutrality Special Report focuses on the court ruling and continuing challenges.

Cable interests, AT&T and competitive fiber providers continued to lobby the FCC against potential business data service (BDS) regulation they say would be unjustified. Rate regulation of Cox Communications offerings "will significantly impact BDS investment decisions, particularly on competitive providers," said a Cox filing Monday in docket 16-143 on a meeting with an aide to Commissioner Mike O'Rielly. "We urged the Commission to reject competitive market tests ('CMTs') based on overly granular areas such as census blocks or specific locations, and to reject CMTs that would require multiple competitors before finding a market competitive. We noted that such tests would lead to exceedingly broad price regulation that is not supported by the record." Cox said any new regulation should be limited to incumbent telco TDM-based services where they have substantial market power. The American Cable Association opposed any rate regulation of nonincumbent BDS providers, which merit "light touch" regulation, said ACA on a meeting with General Counsel Howard Symons, Wireline Bureau Chief Matt DelNero and another staffer. AT&T said a competitive market test should deem a census tract competitive if at least two providers have deployed fiber facilities within 2,000 feet. AT&T questioned the proposals of competitors, including Incompas/Verizon, that would count competitors only if they have actual customers or connections in the relevant area. It also made filings on: "endogeneity" problems it said plagued market power conclusions based on regression analysis conducted by FCC consultant Marc Rysman (here); a study disputing Sprint arguments (here); and various BDS issues discussed with Symons, DelNero, an aide to Chairman Tom Wheeler and other staffers (here). Lightower Fiber Networks and Lumos Networks argued against regulating competitive fiber provider rates, as did Uniti Fiber. Granite Telecommunications urged the FCC to "delink" a tech-transition wholesale platform service remedy from the BDS proceeding and retain the wholesale "regulatory backstop" until it completes an examination of the wholesale voice platform market. The Quilt, a nonprofit group representing research and education (R&E) networks, asked the FCC not to sweep R&E networks into the same BDS regulatory category as commercial providers.

CTIA, USTelecom and other industry groups told the Office of Management and Budget that FCC estimates on the costs of complying with the 2015 “enhancements” to transparency parts of 2015 net neutrality rules are inadequate and should be rejected. OMB sought comment under the Paperwork Reduction Act. The comments were filed at OMB and in FCC docket 14-28.

The FCC released its media ownership order Thursday. As expected, the order approved Aug. 10 on a party line 3-2 vote (see 1608110058) resolves the 2010 and 2014 quadrennial reviews, leaves most existing ownership rules in place and restores joint sales agreement rules that were knocked down by the 3rd U.S Circuit Court of Appeals. “The record in this proceeding leads us to conclude that retaining the existing rules is the best way to promote our policy goals in local markets at this time,” the FCC said. A court challenge is likely by all sides, both allies of media deregulation and its foes said in interviews.

Industry parties asked a federal court to review a ruling siding with the FCC on its 2015 net neutrality and broadband reclassification order. Petitions for rehearing were filed Friday by Alamo Broadband, AT&T, CTIA, NCTA and the American Cable Association, USTelecom and CenturyLink, and Tech Freedom and other intervenors at the U.S. Court of Appeals for the D.C. Circuit (USTelecom v. FCC, No. 15-1063 and consolidated cases). The petitions had been expected and are seen by observers on both sides of the debate as unlikely to win rehearing, though some FCC critics are more hopeful of Supreme Court review (see 1607280049).

Fiber proponents urged the FCC to devise a Connect America Fund subsidy auction to encourage deployment of cutting-edge high-speed networks and services, as initial comments on a Further NPRM were posted Thursday and Friday in docket 10-90. Satellite and some wireless interests suggested the rules should encourage broad deployment and industry participation, and traditional telcos seemed fairly sympathetic to that. Regulators in three northeastern states where Verizon declined initial CAF Phase II support asked the commission to ensure or help their states receive their fair share of support through the auction.

The FCC rejected several proposed conditions on Charter Communications' proposed buys of Time Warner Cable and Bright House Networks, including limits on New Charter's ability to access TWC's regional sports networks for five years and requiring it to offer a stand-alone broadband option. Some parties were critical of the final order that left out their suggestions. "We're pretty disappointed," Alliance for Community Media President Michael Wassenaar told us Wednesday.

A majority of commissioners have signed off on Charter/TWC/BHN approval, with it now in "must-vote" status, FCC and cable industry sources tell us. Commissioner Mike O'Rielly approved Charter Communications' buying Time Warner Cable and Bright House Networks, with dissents in some parts, while Commissioner Jessica Rosenworcel also approved, an FCC official told us. The official didn't provide details on the dissents. Meanwhile, Commissioner Ajit Pai voted "no" Thursday, an FCC source said. Commissioner Mignon Clyburn's office didn't comment.