FCC has primary responsibility for encouraging broadband penetration, and FCC Chmn. Powell “is whipping the snail as fast as he can whip it,” said Bruce Mehlman, assistant Commerce Secy., Office of Technology Policy, at Fiber-to-the- Home Council meeting Wed. in Reston, Va. Powell, meanwhile, made it clear that FCC was willing to take on that responsibility, telling audience at unrelated event that FCC’s job was to lead in broadband policy development, even though that’s unusual role for regulatory agency. Powell was hosting “international policymakers” discussion on broadband at FCC hq, hoping to increase interest.
Supporters of Senate Commerce Committee Chmn. Hollings’ (D-S.C.) broadband legislation on Wed. highlighted lackluster demand for high-speed Internet as reason why his more limited bill made more sense than House’s Tauzin-Dingell version. ILEC deregulation legislation, such as Tauzin-Dingell (HR- 1542) and Breaux-Nickles (S-2430), doesn’t address demand issues and would further stifle broadband competition, said witnesses who included Reps. Markey (D-Mass.) and Cannon (R- Utah), 3 state telecom regulators and Pa. state senator. Hollings asked: “We are at a crucial juncture in telecommunications policy -- are we going to hold steadfast to the goal of competition and allow it to continue guiding our decision making, or are we going to allow groups with other objectives in mind to guide our actions?” Opponents of Tauzin-Dingell told Hollings and committee there was no “crisis” in broadband deployment that needed legislative fix. Hollings’ bill (S-2448) is designed to help fund broadband rollout to rural areas. No witnesses spoke in favor of HR- 1542, S-2430 or similar regulatory approaches.
HERSHEY, PA. -- Roy Stewart, chief of FCC Office of Bcst. License Policy, didn’t once mention EEO during his presentation here Mon. at Pa. Assn. of Bcstrs. (PAB) -- but that was subject of every question but one he received in spirited session. In its 3rd attempt to adopt employment rules for TV and cable that will withstand court scrutiny (2 early rules were ruled unconstitutional), he said Commission was trying to “strike a balance” to assure that all prospective employees would hear about industry job openings.
FCC promoted Kris Monteith to associate bureau chief- intergovernmental affairs, Consumer & Governmental Affairs Bureau… White House said President Bush planned to nominate Seth Cropsey of Greenberg Traurig to be dir., International Bcstg. Bureau… Richard Sulpizio moves to pres.-China operations, Qualcomm, remains on Qualcomm board… Bob Howard-Anderson promoted to acting pres.-CEO, Occam Networks… Kevin Duffy, ex-Siemens, named gen. mgr., Proxim’s new Broadband Services Div.; Steve Timmerman, ex- Inviso, becomes vp-mktg… Mark Effron, ex-Post-Newsweek Stations, appointed vp-live news programming, MSNBC… Steve Davidson, ex-HBO, and Martin Jaffe, COO, Silvercrest Asset Management Group, elected to Worldgate board… Cable Center announced its 2002 inductees into Cable TV Hall of Fame: Daniel Aaron, Comcast; late Edward Allen, Western Communications; Frank Drendel, CommScope; Joseph Gans, Gans Multimedia Partnership; Ted Rogers, Rogers Communications; Gene Schneider, UnitedGlobalCom; Gail Sermersheim, HBO.
Some of country’s most prominent media executives, including Disney’s Michael Eisner, Rupert Murdoch of News Corp., and EchoStar CEO Charles Ergen, pledged Fri. to work with federal govt. to ensure that citizens will be able to get vital information during any future national crisis. First meeting of Medial Security & Reliability Council (MSRC) was prompted by Sept. 11, which knocked out several TV antenna towers atop World Trade Center, cutting off local TV broadcasts to hundreds of thousands of people in N.Y.C. metropolitan area who rely on over-the-air transmissions, rather than cable or satellite. MSRC, which was based on same idea as Network Reliability & Interoperability Council (NRIC) for phone service providers, was created to study and report to FCC on security, robustness and reliability of broadcast TV and multichannel video systems. Separately, FCC created Homeland Security Policy Council, which may be beneficiary of knowledge gained by MSRC. At meeting, Richard Sheirer, who was dir. of emergency management for N.Y.C. on 9/11, and Thomas Van Essen, former fire commissioner for N.Y.C., outlined difficulties they experienced in communicating with public and other public safety agencies at time.
MSTV supports delaying 700-MHz spectrum auctions, saying increased pressure for stations to vacate Ch. 52-69 would hurt public interest by increasing interference on lower channels. “Because we are in the middle of the DTV transition, the core television band is overcrowded with stations operating both analog and digital facilities,” said MSTV Pres. David Donovan in letter to FCC commissioners. He said eventual efficient use of remaining TV channels will require “repacking” stations, and June 19 auctions would make it “extremely difficult to devise a comprehensive, efficient spectrum plan.” He said MSTV, which helped develop DTV channel assignment plan, is working on detailed plan for core spectrum: “The difficulties of this task are enormous.”
PGTV’s Total.TV, a prospective bidder in upcoming 700 MHz auctions, shopped around potential compromise position on Capitol Hill last week designed to bridge impasse on timing of auctions. Draft compromise language by Total.TV, which is billing itself as potential new competitor to satellite and cable TV, came as other compromise positions were floated around and industry awaited word from FCC on whether it would grant CTIA request to delay June 19 auction date. Newly formed Total.TV told FCC Chmn. Powell in recent letter that it supported brief delay in auction dates. Company, created by Phil Goldman, who is one of founders of WebTV, has said it would like to use all of 78 MHz available in upper and lower bands of 700 MHz auctions to create multichannel video service that would compete with existing multichannel video programming distributors. But draft compromise by Total.TV would combine lower 700 MHz economic area group (EAG) licenses with upper 700 MHz licenses in Auction 31 for Chs. 60-69. Draft language would continue to allow combinatorial bidding for all frequencies in Auction 31. So draft would keep June 19 date intact for rural service areas (RSA) and metropolitan service areas (MSA) in lower band or Auction 41. Auction 31 for upper band EAG licenses would be delayed. Compromise would call for FCC within 9 months of enactment of legislation to modify auction and service rules for services that include multi-channel video program services. FCC also would have to submit report to Congress within one year of legislation’s passage spelling out when FCC plans to reschedule auction and describing progress of DTV transition and other factors related to timing. Now there are conflicting legislative proposals in Congress, including bill passed by House that would direct FCC to postpone 700 MHz auctions indefinitely. Sens. Ensign (R-Nev.) and Kerry (D- Mass.) are sponsoring bill that mirrors language of auction delay legislation backed by House Commerce Committee Chmn. Tauzin (R-La.). Alaska Sen. Stevens, ranking GOP member of Senate Appropriations Committee, is sponsoring bill that would compel FCC to hold auctions on time. Ensign’s office is said to be gauging support for similar compromise that would let C block MSA and RSA licenses move forward to auction as planned and delay EAG bidding. Since introducing bill earlier this month, Ensign has added Sens. Breaux (D- La.), Lincoln (D-Ark.), Wyden (D-Ark.), Hutchison (R-Tex.) and Senate Minority Leader Lott (R-Miss.). Congress faces dwindling time period to craft compromise on auction timing, with House and Senate scheduled to begin Memorial Day recess May 24. Meanwhile, some industry observers expect FCC to act on CTIA application to review Wireless Bureau decision to keep June 19 auction date intact by May 28, which is when upfront payments are due from prospective auction participants.
FCC extended deadline for reply comments in triennial review of unbundling requirements to June 5, from May 21, at request of WorldCom, which asked for more time to fully analyze issues raised in initial comments.
Saying radio station ownership concentration in Monmouth, N.J., is partially offset by availability of out- of-town stations, FCC approved acquisition by Millennium Radio Group of 5 stations in that market from Nassau Bcstg., Seashore Bcstg. and North Shore Bcstg. (BAL/BALH-20010618AAN- AAP). Deal will give Millennium 63.8% of ad revenue in market. FCC called benefits of deal “real and substantial,” with likelihood of “substantially improved programming, which is geared to local interests and local concerns.” Comr. Copps, however, dissented, saying out-of-market stations “do not provide the local coverage that makes radio unique… It is unlikely that any owner in this market will be able to compete with the market power that will accrue to the Millennium stations…. The grant of these transfers raises my concerns about the future of local radio.”
Policy analysts struggled to place blame for downturn of telecom sector Fri., deciding there are many causes and just as many culprits. At seminar on Capitol Hill sponsored by Progress & Freedom Foundation (PFF), consultant and PFF fellow Larry Darby said exercise was like game of Clue, with people sitting at power lunches throughout Washington trying to decide if Col. Mustard did it and what weapon was used. There are many culprits to choose from, such as managers of start-up firms armed with “RBPs -- Rotten Business Plans,” investment community armed with “greed and myopia,” regulators, Congress, he said. Legg Mason analyst Blair Levin said blame-finding effort was more like Agatha Cristie’s “Murder on the Orient Express” where it turned out all the suspects were to blame.