FCC should repeal radio-TV cross-ownership rule because it no longer is necessary to promote economic competition and diversity, Viacom said in petition for Commission rulemaking. Petition called rule “historical anomaly,” saying FCC had “based all of its recent radio ownership decisions on the presumption that radio and television stations compete in different advertising markets.” Separate ownership also isn’t necessary for diversity of ideas, Viacom said, because marketplace for ideas “is rich and robust” with addition of new cable channels, Internet, other sources. It noted that radio-TV cross-ownership rule was only broadcast-related cross-ownership rule not currently under review.
FCC’s upcoming auction for lower 700 MHz spectrum has attracted broad array of prospective bidders, ranging from Paul Allen’s Vulcan Spectrum to broadcaster Univision to expected contingent of small, rural carriers. While broadcast players such as LIN TV applied to bid for licenses in that band, large national wireless carriers appear to have largely stayed away. Intel and Microsoft, which were subject of speculation in recent months about their possible participation, also didn’t file short forms. FCC late Fri. delayed upper 700 MHz auction until Jan. 14, 2003 (CD May 28 p3), retaining June 19 for lower band in move seen as blow for broadcasters such as Paxson Communications, which had urged Commission to keep date for both bands. Decision was seen as at least partial victory for CTIA, which had asked FCC to delay bidding indefinitely for both Ch. 60-69 and Ch. 52-59. Short-form applications that FCC released Fri. for lower band include 72 that it accepted and 81 that it deemed incomplete. Service rules for 48 MHz of spectrum in lower 700 MHz band were created to allow for new fixed and mobile wireless operations in band, as well as new broadcasting services.
AFL-CIO sent resolution opposing EchoStar takeover of Hughes Electronics and its DirecTV to Congress and FCC.
FCC granted Media Access Project, Consumer Federation of America and other consumer groups one-week extension of comment deadline for merger of AT&T Broadband and Comcast. Replies were due May 29, but MAP requested one-week delay, saying it needed more time because of limited staff resources and intervening Memorial Day holiday. Deadline now is June 5.
NTIA Deputy Dir. Michael Gallagher told FCC Chmn. Powell in May 15 letter that portions of Commission’s ultra-wideband (UWB) order having to do with govt. use of such devices “require some clarification.” Order had spelled out that UWB standards would apply to devices operating in shared or in nongovt. bands, including those operated by govt. agencies. Gallagher said in letter that NTIA had authorized U.S. govt. users to procure and operate “off-the-shelf” nonlicensed devices that conformed to Part 15 of rules without going through special NTIA authorization. On such devices, Gallagher said NTIA planned to update applicable parts of its manual “to make clear that NTIA rules with respect to Part 15 devices will apply to government users procuring and operating ‘off-the-shelf’ UWB devices that conform to the Commission’s new Part 15 rules.” Consistent with “long- standing” NTIA practice, Gallagher said, agency will continue to authorize new systems, “including new UWB devices that do not conform to either Annex K [of NTIA Manual] or Part 15 standards, pursuant to the system review procedures of Chapter 10 of the NTIA Manual… Those procedures provide ample opportunity for agency representatives, including an FCC liaison representative, to review, comment upon and advise the developer and NTIA of necessary changes and operating constraints.” He stressed that authorizations for nonconforming UWB systems “would be strictly limited to UWB systems required for critical U.S. missions, including national security… It is not our intention to allow the Chapter 10 procedures to undermine the development of commercial UWB devices envisioned by the report and order or to lead to a proliferation of nonconforming UWB devices.” One question following FCC approval of UWB order in Feb. had been how federal agencies that used that technology would be covered under what govt. officials characterized as “conservative limits.” Govt. agencies such as Defense Dept. and Transportation Dept. had raised serious concerns about potential interference that UWB devices could create for GPS and other safety-of-life systems. Some agencies had been particularly concerned about language holding govt. users in nongovt. spectrum to same Part 15 limits as everyone else. However, both FCC and NTIA have indicated that that is part of normal course of coordinating shared spectrum use.
Group of Senate committee leaders is pressing FCC to conduct study of broadcast TV market concentration and its impact on program diversity. Senate Commerce Committee Chmn. Hollings (D-S.C.), Judiciary Antitrust Subcommittee Chmn. Kohl (D-Wis.) and ranking Republican DeWine (R-O.) sent letter May 22 to FCC Chmn. Powell seeking data on issue by year-end. They said decision by U.S. Appeals Court, D.C., earlier this year striking down some media ownership rules while remanding other related rules to FCC for greater justification required assessment of diversity before agency could take action in response to ruling: “The collection of data about the broadcast, cable, satellite, Internet and other distribution platforms, in conjunction with an assessment of the robustness and viability of the independent programming community, would help both the Congress and the Commission as determinations are made as to appropriate [ownership] limits.”
FCC late Fri. postponed upper 700 MHz PCS band auction until Jan. 14, 2003, but kept existing date of June 19 for lower band, leaving open window for congressional action. Move, which elicited partial dissent from FCC Comr. Martin on lower band timing, came days before upfront payments were due May 28 for both bands. Commission turned down CTIA application for review that asked full Commission to overturn Wireless Bureau decision to hold both auctions on time. It also rejected, on procedural grounds, application for review by Paxson Communications and Spectrum Clearing Alliance that asked FCC to clarify that bidding for both bands would move forward June 19. In long separate statement, FCC Chmn. Powell stressed that Commission was aware of “late inning legislative drive” by industry to change statutory deadlines for bidding. “It bears repeating that, with this temporary delay, we are not imposing a deadline on Congress,” he said. “Instead, we are making an affirmative policy judgment to move the auction to a date of our choosing.” He emphasized circumstances that warranted different outcome for 2 bands, including number of bidders teed up to vie for Ch. 52-59 spectrum and pace of digital TV transition that would clear both bands.
Next phase of regulatory battle over NextWave PCS license case at FCC involves construction requirements faced by bankrupt C-block bidder, according to recent filings at Commission. NextWave made initial construction filings for most of its C-block licenses in Jan. after Commission returned its previously cancelled PCS licenses last year. U.S. Appeals Court, D.C., last year reversed FCC ruling that had cancelled NextWave licenses for missed payment, resulting in overturning of $16-billion re-auction of NextWave licenses won by carriers such as Verizon Wireless. One issue at center of pending FCC petitions is whether settlement agreement reached by Commission, NextWave and re-auction winners last year had given NextWave additional time to meet certain construction requirements. But that interpretation of settlement agreement, which had been approved by Justice Dept. but ultimately not ratified by Congress, is being challenged now at FCC Wireless Bureau by N.Y. Telecom. Company, which didn’t fully disclose its ownership interests in its FCC filing, said it was interested in bidding on some NextWave licenses if they ultimately were revoked and subjected to re-auction. N.Y. Telecom contended NextWave had missed its construction deadlines.
Three-judge panel of U.S. Appeals Court, D.C., handed ILECs pair of unanimous victories Fri., remanding FCC orders on line-sharing requirements and unbundled network elements (UNEs). On FCC’s UNE order, which responded to U.S. Supreme Court remand of agency’s rules, court said it mandated unbundling in every geographic market without regard “to the state of competitive impairment in any particular market.” Ruling concluded FCC “nowhere appears to have considered the advantage CLECs enjoy in being free of any duty to provide underpriced service to rural and/or residential customers and thus of any need to make up the difference elsewhere.” Line- sharing case focused on requirements that ILECs unbundle portion of copper loops so they could offer competitive DSL Internet access to CLECs. Court sided with ILEC arguments that FCC had failed to consider broadband competition in larger context of not just DSL choices, but alternatives provided by cable and satellite. Both CLECs and incumbents said ruling was likely to help shape upcoming FCC decisions, including Commission’s UNE review.
Bioterrorism bill with unrelated digital TV spectrum allocation language is on its way to desk of President Bush, following Senate passage May 23 of conference committee report (H. Rept. 107-481) on HR-3448. Provision would require FCC to allot paired DTV channel to eligible full- power TV broadcast licensees making such requests. Licensees “or permittees or their successors in interest” are deemed eligible if they: (1) Had an application pending for analog TV station construction permit as of Oct. 24, 1991. (2) Application was granted after April 3, 1997. Senate unanimously approved report day after House passed measure by 425-1 margin.