CTIA’s request to delay 700 MHz spectrum auction is “groundless,” said Lowell Paxson, chmn. of Paxson Communications and founder of Spectrum Clearing Alliance. He said bidders had had 21 months to assess market conditions and it was “nonsense” to suggest more time was needed (CD April 4 p9, April 3 p5): “Quite frankly, CTIA has used the Section 309 argument to delay this auction for far too many years,” Paxson said. He also suggested not all CTIA members wanted auction postponed. “There may never be perfect certainty on all matters regarding the 700 MHz auction,” Paxson said: “If the FCC is to wait until there is ‘regulatory certainty’… then this auction will never be held.”
Federal Election Commission (FEC) rescheduled closed meeting in which agency will attempt to implement campaign finance reform bill recently signed by President Bush. Date was changed to 10 a.m. April 11 from April 10. FEC must revise regulations affected by new law that: (1) Restricts corporate and labor union expenditures for broadcast, cable and satellite “electioneering communications.” (2) Prevents broadcasters from offering lowest unit charge to buyers of ads mentioning political opponents. National Rifle Assn., Sen. McConnell (R-Ky.) and Rep. Barr (R-Ga.) separately filed suits in U.S. Dist. Court, D.C., challenging law’s constitutionality. NRA said an inadvertent consequence of law would be Internet regulation, since many online communications traveled via cable and satellite (CD March 28 p 7). Injunctions are sought against FEC, FCC and Dept. of Justice to block implementation and enforcement of law. Another item on agenda is review on audit report on 2000 Presidential campaign of Sen. McCain (R-Ariz.).
EchoStar’s “2-dish” plan for meeting local-into-local broadcast carriage requirement violates FCC rules and Communications Act, Commission said Thurs. Agency ordered EchoStar to comply with single-dish requirement and give progress report within 30 days. Action was in response to petition by NAB and ALTV (CD Jan 25 p5). “We're gratified the FCC has recognized that EchoStar’s 2-dish scheme was an anticonsumer ploy to evade FCC rules and regulations,” NAB Pres. Edward Fritts said: “Local television viewers will be the beneficiaries of today’s action.” EchoStar and DirecTV didn’t immediately comment.
National Rural Telecom Coop (NRTC) urged FCC to reject proposed EchoStar takeover of DirecTV, citing what it said were severe implications for consumers. NRTC said it was responding specifically to “a litany of inaccurate and contradictory claims” made by companies involved in last few months. NRTC document has 6-page chart that it says documents at least 22 occasions companies made conflicting statements about “material issues central” to the deal. Spokesman for DirecTV said NRTC was “grasping at straws.” NRTC CEO Robert Phillips said number and frequency of contradictory, inaccurate statements made by companies was “simply astonishing. These statements were made at various times to various audiences, but regulators should not be fooled… The FCC should take this pattern of behavior into consideration when it decides whether this merger should be permitted.” Phillips said NRTC had pointed out repeatedly many problems deal posed for rural consumers including higher prices, less service, no choices, less innovation.
Comments to FCC are due May 3 on Ia. Telecom Services request to discontinue service to customers in 2 exchanges in Ia. that are being sold to Norway Telecom. Ia. Utilities Board already has approved transfer of exchanges.
U.S. Appeals Court, D.C., turned down request for stay on implementation of video description rules. Request was made by MPAA, NAB, NCTA. Court denied request March 29, but still pending is groups’ petition seeking to overturn rules. Oral argument in that case is set for Sept. 6, and decision is expected in late 2002 or early 2003. Because motion for stay was turned down, FCC’s rules went into effect Mon. Rules require major broadcast and cable networks to add video descriptions to 50 hours of prime-time or children’s programming per quarter. In video description, narrator describes action and environmental aspects of program during pauses in dialog, and those descriptions are broadcast over Secondary Audio Programming channel. American Council of the Blind is major supporter of rules. FCC also turned down MPAA, NAB and NCTA request for postponement, saying it wasn’t in public interest to delay. Industry groups argued that rules impinged on First Amendment and would cost them hundreds of thousands of dollars to comply.
FCC Chmn. Powell offered his own plan to spur national DTV transition Thurs., telling Sen. Hollings (D-S.C.) and Rep. Tauzin (R-La.) in letters that he would seek commitments from cable operators, broadcasters, satellite providers, equipment manufacturers and retailers for his voluntary, 5- part proposal. Powell said his plan wasn’t intended to be comprehensive or to resolve many of weighty issues, such as copyright protection and equipment compatibility, hampering transition. “Rather, it is intended to provide an immediate spur to the transition by giving consumers a reason to invest in digital technology today, while we continue to work on resolving the longer-term issues,” Powell wrote. One of major obstacles to DTV transition is lack of digital programming and low demand from consumers, many of whom find HDTV sets too costly. Aides to Hollings and Tauzin confirmed their offices had received and were reviewing Powell letter. Both lawmakers were traveling during congressional recess and couldn’t be reached for comment, staffers said. Letters were made public as many TV officials were leaving for NAB convention in Las Vegas.
Industry and govt. spectrum users agreed on need for more regulatory certainty and flexibility in govt. spectrum policy at NTIA Spectrum Management & Policy Summit Thurs. But at start of 2-day summit, panels struggled with how to define spectrum property rights, incumbent relocation, global harmonization, incentives for efficient spectrum use, accurate forecasts of future demand. FCC Chmn. Powell and NTIA Dir. Nancy Victory stressed renewed commitment of both agencies to engage in regular spectrum planning meetings. While overarching govt. goal is to develop national spectrum policy and improve spectrum management policy, Victory said NTIA was in “listening mode” to assess what was and wasn’t working under current policies. “This is clearly a significant moment in spectrum management,” she said, noting spectrum review outcome could involve changing “slightly or drastically” way bands are managed. Much of day-long discussion focused on thorny transitional issues that face govt. policymakers in areas such as how incumbents are treated when more flexible spectrum policies like sharing and leasing are introduced. “Our challenge is this: How do we fit new world-leading technologies into the U.S.’s own cramped spectrum allocation,” Commerce Secy. Donald Evans said.
Nationally, subscribers’ average monthly bill for cable and equipment increased 7.5% to $36.99 in 12-month period ending July 1, 2001, FCC reported. Statistics were contained in Commission’s annual report to Congress on cable industry prices. Staff examined monthly charges for basic service and expanded basic tiers, monthly charges for equipment, installation fees, reconnect fees, tier change fees. Specifically, average monthly charge in year for equipment increased 9.1% to $3.24 and for basic and expanded basic programming 7.3% to $33.75.
Private cable overbuilders have joined their municipal counterparts in accusing incumbent cable operators of indulging in predatory pricing policies to “restore their former monopoly” in violation of federal and local regulations. Selective discounts offered by incumbents have become issue in AT&T-Comcast merger transfer applications with local franchising authorities (LFAs). In recent letters to LFAs in Mich. and Ill., WideOpen West (WOW) accused Comcast and AT&T of seeking to drive out competitors by offering “selective unpublished discounts” and lower prices. “If federal, state and local government regulations are not enforced, the discriminatory pricing practices currently deployed by Comcast will not only impede the potential benefits in service and prices to cable customers, but it threatens to destroy the competitive cable television industry altogether,” WOW Pres. Mark Haverkate wrote. He urged LFAs to condition consent to merger in way that would preserve benefits of competition.