FCC said Enforcement Bureau investigation resulted in arrest of Paul Dorleans for operating unlicensed FM station in Brooklyn. Commission said Dorleans had received multiple notices to stop operating station on 87 MHz.
PGTV’s Total.TV, prospective bidder in 700 MHz auction that bills itself as potential new competitor to satellite and cable TV, is latest to ask FCC to delay June 19 auction. FCC Wireless Bureau last week turned down CTIA request for delay (CD April 11 p 1). Newly formed Total.TV told FCC Chmn. Powell in letter Mon. that it supported “brief delay” in auction date, saying it would increase competition in provision of video services and bolster DTV rollout. Total.TV said company was created by Phil Goldman, one of founders of WebTV. It said it would like to use all of 78 MHz available in upper and lower bands of 700 MHz auctions. Under plan that bears similarities to NorthPoint proposal, though at different frequency, company said it proposed to use spectrum to create multichannel video service that would compete with existing multichannel video programming distributors (MVPDs). “The availability of the 700 MHz spectrum offers a once-in-a-generation opportunity to promote new technologies, while providing needed competition between and among MVPDs, as well as fostering the digital television transition,” letter said. PGTV attorney Henry Goldberg said in letter that Total.TV planned to: (1) Deliver multichannel TV program networks using over-air digital terrestrial transmission on 700 MHz frequencies, “which are already receivable by digital TV sets.” (2) Require neither satellite dish nor cable installation. (3) Offer national programming with access to all free local broadcast channels plus local pay-per-view. (4) Price service aggressively compared with satellite and cable MVPD services. (5) Use less expensive set-top box, particularly for multiple receiver homes, and eventually eliminate need for device. Filing Mon. marked first time that Total.TV had publicly disclosed plans for service. It also is seeking changes in rules for 700 MHz spectrum that would encourage participation by businesses other than wireless voice and data service providers, it said. Rules for upper band of 700 MHz allow wide array of wireless services, including broadcast type, but Total.TV said that while such services would be allowed in theory, they must be consistent with technical rules that impose 1 kw power limit per transmitter. “It is impossible to deploy a competitively viable multichannel video programming service operating under such a power constraint,” company said. Service rules for lower band of 700 MHz, by comparison, have 50 kw limit. Such differences make it hard for potential MVPD competitor “to bid in both auctions in order to acquire sufficient blocks of spectrum for a competitive multichannel video service,” Total.TV said. “While it is imperative to protect the incumbent TV broadcasters and future public safety users from harmful interference, the 1 kw power limit is not necessary for either purpose.” To allow bidders to obtain blocks of spectrum large enough for MVPD services, Total.TV asked FCC to consider single auction for both bands with package bidding.
FCC Media Bureau granted 11 broadcasters right to be carried on main EchoStar satellites for local-into-local service, in decision released Mon. EchoStar had proposed carrying them on separate satellite, requiring separate dish for local reception, but Commission again determined that would be discriminatory against broadcasters. Stations are owned by Entravision Holdings, Costa de Oro TV, Brunson Communications, Channel 20 TV, Marantha Bcstg., Adell Bcstg., LeSEA Bcstg., Carolina Christian Bcstg., Christian TV Network, Good Life Bcstg. Media Bureau decision cited recent FCC ruling that 2-dish plan was discriminatory and consolidated all petitions into single order.
Qwest has been more aggressive in opening its markets to competitors than other ILECs, according to report prepared by industry analyst Ron Binz and publicized Mon. by Qwest. Binz is pres. of Competition Policy Institute and former head of National Assn. of State Utility Consumer Advocates. Report said Qwest’s more competitive position on FCC issues such as colocation and its decision to terminate membership in USTA were evidence of its breaking rank with other ILECs on policy issues. Binz attributed that independence in part to Qwest’s non-ILEC roots.
FCC fined SBC $100,000 for refusing to file sworn statement in enforcement case after agency directed it to do so (CD Nov 5 p5). In order released Mon., Commission said dispute began Oct. 1 when Enforcement Bureau directed SBC to answer questions about possible discrimination in its provisioning and maintenance of DSL technology and to clear up its “possible misrepresentations” to bureau. Bureau said SBC should provide sworn statement to attest to truth of its responses because of misrepresentation issue. SBC answered questions as requested but didn’t include sworn statement. When bureau asked about omission, company said it intentionally refused to provide sworn statement because it questioned legality of request. SBC eventually submitted sworn statement but “under protest.” Although dispute began at bureau, it was bumped up to Commission level “given the significance of the challenge to the Commission’s authority” and forfeiture order was issued by Commission. FCC said it was “critical” to get sworn statements in cases such as this where “a core question at issue is whether a carrier has engaged in misrepresentation to the Commission.” Agency also cautioned that “a licensee cannot ignore a Commission order simply because it believes such order to be unlawful.” FCC said it disagreed with SBC that requests for sworn statements could be made only under Sec. 409 of Communication Act which outlines when FCC can use subpoena power. “We have routinely required affidavits and verifications from regulated entities during the course of various proceedings without asserting subpoena power,” agency said in order. SBC’s action “obstructs” agency’s ability to do its job, FCC said. SBC said FCC’s action was “disappointing” because agency didn’t question truthfulness of carrier’s responses. Instead, it said, enforcement action was based solely on “legal issue” of whether FCC “has the authority to require that information submitted to it be in the form of a sworn statement as opposed to a letter signed by legal counsel.” AT&T spokesman said FCC was “correct to reprimand SBC for obstructing an Enforcement Bureau investigation” but “unfortunately a $100,000 fine for SBC has less impact than a parking ticket.” SBC’s defiance led to speculation by Washington telecom insiders that company was setting up court challenge to limit FCC’s authority.
Recent federal appeals court decision shaking FCC TV ownership limits will usher in media consolidation wave, including NBC sale, Yahoo Music Vp David Goldberg said. Also on megamergers panel Sat. at Stanford Business School Future of Content conference, former FCC cable merger analyst, Sunil Dulavoy of Analysys consulting, said last month’s U.S. Appeals Court, D.C., ruling presaged increasing integration of cable and broadcast and sharper questioning of Commission’s premise that network ownership of programmers diminished diversity by freezing out competing programmers. Where Washington has promoted business over consumer interests in allowing media mergers, Goldberg said, European Commission has stepped in to preserve 5 major labels for competition. But “you're going to see the Justice Department take a very active role in the online music business,” he said. Goldberg, contending economics militate against media conglomerate ownership of labels, predicted AOL Time Warner would divest Warner Music within 3 years. Radio has conditioned music consumers to expect all labels’ performers on outlets, and media-content ownership tie-ins clash with that demand, as seen in Disney’s experience with Hollywood Records, he said.
IBiquity’s digital audio broadcasting (DAB) system isn’t most spectrum-efficient, and may be least, according to ex parte filing at FCC by National Federation of Community Bcstrs. (NFCB). Group said iBiquity approach locked in existing channel allotment system “with all its inefficiencies.” Pure digital system could pack in several times more stations, NFCB said, making it easier for nonbroadcasters to launch stations: “By proffering a digital plan that accords digital capacity to incumbent licensees, and only them, iBiquity is treading a path that in television proved disastrous.” NFCB said FCC instead should have selected all-new spectrum band for DAB, such as portion of TV spectrum being freed by digital transition, such as Ch. 6, which would yield 30 additional FM channels: “That would be a horrifying prospect to Clear Channel no doubt, but also a public benefit that the Commission should not ignore.”
DoJ recommended Mon. that FCC approve Verizon’s long distance entry in N.J., saying company’s 2nd Sec. 271 application eased its earlier concerns about pricing of hot cuts. Justice had recommended FCC approval first time around but had cautioned Commission to take hard look at one-time fees Verizon charged for completing hot cuts for competitors. Hot cut is process by which telco disconnects customer phone line from its own switch and connects it to competitor’s switch. Verizon’s new application specifies lower hot cut charges, which DoJ said were similar to charges company recently had agreed to in N.Y. Justice continued to express concern about accuracy of Verizon’s wholesale electronic billing process, which is relied upon by CLECs. Verizon Vp Sarah Deutsch said billing system in question was same one company used in Pa., where FCC already had cleared it for long distance entry. She said billing issues raised by CLECs in this proceeding actually weren’t about basic system, but stemmed from billing disputes. DoJ also recommended FCC institute “post-approval monitoring of Verizon’s compliance with the obligation to provide nondiscriminatory access to wholesale billing.” Verizon withdrew first application March 19 after FCC raised questions about procedural problems as well as hot cut prices, and refiled March 26.
Minority Media & Telecom Council (MMTC) and more than 40 other groups representing minorities endorsed most of FCC’s proposals on EEO rules, they said in comments Mon. on rulemaking. EEO compliance is essentially only public service Commission requests of radio stations and one of very few required of TV stations, cable systems and other mass media outlets, MMTC coalition said. “Equal opportunity should be sacrosanct in the law of broadcasting and cable,” group said. “By seeking to curtail the tradition of exclusionary word-of-mouth recruitment that is so common in close-knit industries like broadcasting and cable, the Commission’s civil rights policies can ensure that the mass media industries are held to the highest standards of enlightened business in providing equal opportunity.” Comments on were due Mon., replies May 15. NCTA endorsed FCC’s plan on EEO rules, including proposed menu of recruitment options. It said cable systems would choose 2 options from menu to increase awareness of cable industry job opportunities, except for cable systems with 6-10 employees, which would be required to choose one option from menu. NCTA also said systems should be required to maintain records that documented recruitment efforts and compliance. Cable industry doesn’t oppose continued filing of reports, it said. NAB offered what it called “a realistic alternative EEO plan” that would have stations with 10 or more full-time employees certify every 4 years that they had either complied with EEO regulations for federal contractors, completed their state broadcaster association’s “Broadcast Careers” program or completed required mix of NAB’s general or specific outreach initiatives. Mesquite Independent School Dist., licensee of radio station KEOM in Mesquite, Tex., asked FCC to raise level for exemption to EEO rules to operations with 10 or fewer full-time employees. School district said its station had only 5 employees and rules were “burdensome” for such small operation that could use its recruitment resources only during school year. Media Captioning Services, women-owned Cal. company, asked FCC to extend EEO requirements on cable operators and broadcasters to vendors such as itself. It complained that it was losing business to companies that sought merely to cut costs without regard to hiring minorities and women. Having twice been reversed by courts, FCC in Dec. proposed new set of rules that were worded more broadly than predecessors (CD Dec. 13 p4). Proposed new set essentially is repeat of Option A of earlier version, requiring broadcast licensees to widely disseminate information about job openings to various segments of community and asking cable entities to conform to same principle as much as possible. In addition to requiring broad outreach for all full-time vacancies, proposed rules would require selecting from menu of general outreach activities, including job fairs and internship programs.
FCC International Bureau authorized Loral Cyberstar to add 2 new beams to design of its Orion F2 satellite at 47 degrees W. Beams are for service to Latin America.