Nation’s top 10 cable MSOs pledged Wed. to support FCC Chmn. Powell’s DTV plan, which called on operators to carry, at no cost, signals of up to 5 broadcast or other digital programming services providing “value-added” digital programming in at least 50% of their prime-time schedules in 2002-2003 season (CD April 5 p1). In letter to Powell, NCTA Pres. Robert Sachs said nation’s largest MSOs would do so by Jan. 1, offering to carry signals of up to 5 commercial or public TV stations or cable networks that provided HDTV in half their prime-time schedules “or a substantial portion of their broadcast week,” NCTA said. Cable networks Showtime and HBO already are providing HDTV programming, as well as HDNET, which means MSOs wouldn’t have far to go to adhere to Powell’s plan, which he has stressed in recent weeks is “voluntary.” Operators who made commitments are Adelphia, AOL-Time Warner, AT&T Broadband, CableOne, Cablevision, Charter, Comcast, Cox, Insight and Mediacom, which together serve more than 85% of cable customers in U.S.
NBC closed Tues. on its acquisition of Granite Bcstg.’s KNTV San Jose (its affiliate for San Francisco market), giving it duopoly in Bay Area after network received FCC approval last month for its $1.98 billion purchase of Telemundo (CD April 11 p3). Telemundo deal included KSTS San Francisco, and network said it planned to “maximize the advantages” of duopoly through “cooperative newsgathering, joint sales efforts and cross-promotion,” plus other “synergies.” Linda Sullivan, pres.-gen. mgr. of NBC’s WRC-TV Washington, was named to same post at KNTV. Steve Schwaid, who led KNTV’s transition as NBC affiliate (replacing KRON-TV Jan. 1), was named vp-news programming for NBC’s 14-owned TV stations.
“I have no idea what the FCC will ultimately do” to resolve debate between satellite digital audio radio services (DARS) providers and wireless communications services (WCS) industry on alleged interference threat posed by DARS terrestrial repeaters, Sirius Satellite Radio CEO Joseph Clayton told SkyForum conference in N.Y.C. Tues. “I think there will be some sort of grandfathering of the existing situation, and perhaps some parameters set that indeed we could live with.” But he said “your guess is as good as mine” on likely timetable. On NAB complaints to FCC that Sirius and XM Satellite Radio might use terrestrial repeaters to insert local programming (which DARS providers have denied), Clayton said NAB position was of no real concern, adding: “Lobbyists are paid to lobby.” XM CEO Hugh Panero said debate typified “arcane” FCC process to work out disputes among industries vying to share adjacent spectrum. “I should note that today, there has been no interference with anyone in the WCS spectrum,” he said. As for NAB, Panero said Association “doesn’t know how to take yes for an answer.” He denied again that XM planned to use repeaters to transmit local programming, as it was barred from doing under DARS license. He said NAB lobbyists were “just responding to their client base,” which has long considered satellite radio threat to local programming.
IDT Winstar and Bell companies exchanged fire at FCC this week over terms of interconnection agreements to which RBOCs must be held for fixed wireless provider that has emerged from Chapter 11 protection. Last month, IDT completed acquisition of remaining stake in Winstar, giving it 100% ownership of company that filed for bankruptcy year ago. IDT Winstar filed emergency petition April 17 for declaratory ruling at FCC, citing “immediate threats” from Verizon and Qwest to deny or delay providing facilities. Winstar argued that Communications Act and FCC rules required those facilities and services to be furnished to company. But RBOCs countered that federal bankruptcy law required IDT Winstar to assume and cure past debt on contracts taken on by pre-Chapter 11 Winstar. Qwest told FCC this week: “IDT’s actions have been carefully orchestrated to migrate Old Winstar customers onto its purchased network under terms that disregard the bankruptcy laws, as well as Qwest’s tariff provisions and operational processes.” Meanwhile, General Services Administration (GSA) weighed in at Commission, contending uninterrupted service to federal customers provided by Winstar was “critical” and in some cases had national security implications.
FCC Comr. Copps told reporters Wed. he was becoming “impatient” with lack of industry response to his concern about indecency and violence on airwaves and thought it might be time for FCC to step in. One possibility would be for agency to “dust off” 1998 Gore Commission recommendations for public interest obligations, voluntary code of conduct and more public service announcements, he told reporters at media breakfast. Gore Commission report was aimed at digital broadcasters but Copps said recommendations could apply to analog and cable providers as well. Paxson and Disney have made some commitments, but generally industry hasn’t responded to his call to voluntarily “come together,” Copps said: “I think it’s time to see how the Commission can encourage action.” He said broadcasters told him they had to air questionable programming because of competitive pressures or for artistic reasons. He said he was particularly puzzled about concerns that artistic directors would walk out if broadcaster or programmer didn’t “put this trash on the air.” Copps said every day he gets 20-25 letters and e-mails expressing concern about violence and indecency and some days there have been thousands. He acknowledged, however, that he knows of no consensus on Commission to act on those concerns.
EchoStar told FCC it wasn’t opposed to proposed AT&T Comcast merger but asked that Commission impose what it called “a narrowly tailored, merger-specific condition to eliminate the program access ’terrestrial loophole'” in new company’s territory. EchoStar said merger had implications for its own proposed takeover of DirecTV, first of which is that deal would create “a veritable colossus” in market for purchase of programming and thereby would exacerbate what it said were disparities in price and other terms that existed between EchoStar and MSOs. “The EchoStar-Hughes consolidation will create the critical mass needed to begin to counter (even without being able to match) the overwhelming strength that AT&T-Comcast would be able to muster in the purchase of programming,” company wrote. EchoStar also said acceleration of broadband deployment that AT&T and Comcast cited as primary benefit of their merger “may further entrench” their power in provision of high-speed Internet, making it more important to introduce broadband satellite offering promised by EchoStar-DirecTV deal, EchoStar said. CWA said FCC should condition approval on service quality reporting requirements. AT&T Broadband in recent years has had record of not complying with commitments to local franchise authorities on system upgrades, services to schools and govt. and other issues, CWA said. Union also said AT&T Broadband had record of not complying with federal labor law and questioned whether deal would result in rate increases, service cutbacks, employment cuts and delays in rollout of new networks and services. Overbuilder RCN told FCC it should either reject deal outright or impose conditions that would ensure survival of competitors. RCN cited what it called anticompetitive tactics in pricing and program access. Specifically, RCN said at minimum it would want conditions demanding access for competitors to AT&T Comcast-affiliated programming on nondiscriminatory pricing and terms, prohibition of exclusive contracts between company and 3rd-party suppliers of programming and essential technologies and requirement for uniform subscriber pricing to deter company from predatory pricing and marketing tactics. BellSouth told FCC deal wasn’t in public interest. It argued that Commission could remove negative consequences of deal by eliminating regulatory disparities between cable and DSL providers such as itself and extending prohibition against exclusive contracts between vertically integrated cable networks and MSOs.
Qwest state regulators are moving ahead with their investigations into allegations that company had engaged in discriminatory dealmaking with CLECs, while AT&T attacked Qwest for seeking national ruling from FCC on what sorts of deals with CLECs must be publicly filed with states.
EchoStar-DirecTV is using unenforceable promises and ephemeral benefits to defend merger deal, NAB said in FCC filing on takeover. Companies haven’t been able to justify deal, even though burden is on them to do so, it said. It’s undisputed that this is deal creating monopoly in many local markets, NAB said. Deals leading to monopoly or duopoly routinely are condemned by regulatory officials, it said. In this case, it said, applicants weren’t attempting to counter voluminous precedent condemning such deals.
Sen. Breaux (D-La.) and Senate Minority Whip Nickles (R- Okla.) unveiled their broadband bill Tues. that would eliminate regulatory distinctions between Bells and cable industry in provision of high-speed Internet services. Biggest change to bill since it began circulating recently is amount of time it would give FCC to create parity in broadband regulations (CD April 23 p1). Rather than imposing 90-day limit on Commission, Breaux-Nickles sets 120--day maximum for FCC action. Breaux said he had spoken with Senate Commerce Committee Chmn. Hollings (D-S.C.), who agreed to hold hearing on bill. Breaux reiterated that although Tauzin-Dingell data deregulation bill (HR-1542) would create such regulatory parity, it couldn’t pass in Senate.
FCC Wireless Bureau seeks comment on ACS Wireless'(ACSW) petition for waiver of deadline by which digital wireless systems must be capable of transmitting 911 calls from TTY devices. ACSW requested a waiver for its Time Division Multiple Access (TDMA) network because it’s in process of deploying Code Division Multiple Access (CDMA) network to comply with build-out requirements for its 3 PCS licenses, and plans to migrate all of its present customers to CDMA technology and phase out use of its other equipment. ACSW said cost of deploying TTY-compatible software in both its TDMA and CDMA networks simultaneously was prohibitive because of other regulatory mandates with which it must comply and high costs of providing service to its largely rural customers. Comments are due May 20, replies May 30.