In action that will significantly limit number of low-power FM (LPFM) stations to be licensed, FCC released decision Mon. saying LPFM stations must meet same 3rd adjacent channel interference protection requirement as full-power stations. Order implements requirements of rider on FCC appropriations bill signed into law in Dec. Commission expects to complete action on its LPFM licensing window in few months, it said in order, and then will direct Mass Media Bureau to open window to allow LPFM applicants that didn’t meet 3rd channel requirements to try to come into compliance. FCC Chmn. Powell said action allowed Commission to begin granting construction permits for at least some LPFM stations, and agency had begun independent testing to determine impact of LPFM stations on full-power FM stations and translators. As part of order, FCC also implemented congressional mandate that denies LPFM license to former pirate radio operators. FCC Comr. Furchtgott-Roth issued separate statement saying he supported move to implement congressional mandate but believed FCC should have delayed LPFM licensing while it went through rulemaking process in order to comply with Administrative Procedure Act.
Wireless Communications Assn. (WCA) labeled as “outrageous” petition by Verizon Wireless asking FCC to defer action on applications for 2-way services by Multipoint Distribution Service (MDS) and Instructional TV Fixed Service (ITFS) licensees. Verizon filed emergency petition last week, saying pending applications, which Mass Media Bureau is scheduled to grant shortly, shouldn’t be acted upon until decisions are made on additional spectrum for 3G services (CD March 30 p1). WCA said carrier’s request marks “unprecedented attempt to delay the deployment of broadband wireless services that will compete against Verizon’s own DSL offerings and that will provide broadband service in areas where Verizon has not made the infrastructure investment necessary to provide DSL.” WCA ticked off recent FCC notices on 2-way services filing window, which began in Aug. and was cited in agency’s interim report on spectrum for advanced wireless services released in Nov. FCC released final report Fri. providing more details on technical challenges to sharing, segmenting or relocating incumbents in 2.5 GHz occupied by ITFS and MDS operations (CD April 2 p1). “A cynic might say that Verizon deliberately waited until the eleventh hour in hour to maximize the possibility that its filing would indeed disrupt the timely grant of the long-standing applications,” WCA wrote.
Objective of Network Affiliated Stations Alliance (NASA) in seeking FCC inquiry into Big 4 TV networks’ “tactics and practices” (CD March 9 p2) was “not to weaken the networks or the affiliate relationship, but rather to strengthen it,” said CBS TV Affiliates’ Chmn. Ray Deaver, KWTX-TV Waco, Tex. In March 30 letter to affiliates scheduling May 30 meeting of stations in Las Vegas, he cited “a period of strained relations” between CBS and its affiliates, intensified by NASA petition. CBS officials are chagrined they weren’t informed of FCC pleading in advance and said CBS shouldn’t have been included in FCC filing. CBS reacted by saying it’s “no longer possible” to work with current affiliates’ board (CD March 29 p2). In response, Deaver told stations “confidentiality was a high priority” in filing of petition, which had been in works for more than 18 months. And, he said, “it is unfortunate” that CBS “should now be seeking the demise of the current affiliates board” whose members (18) are elected by stations: “We are hopeful that the network-affiliate bond can be restored to a healthier equilibrium… “
Viacom’s attempt to avoid complying with 35% national broadcast ownership cap shouldn’t be allowed by court because it’s procedurally flawed and because court isn’t likely to overturn cap, FCC and Network Affiliated Stations Alliance (NASA) said in separate briefs. Viacom is asking U.S. Appeals Court, D.C., to stay ownership cap, citing court decision voiding 30% national cable ownership cap. Stay would prevent Viacom from having to divest stations by May 4.
FCC and Dept. of Justice urged 11th U.S. Appeals Court, Atlanta, to reject BellSouth’s request for dismissal of antitrust suit by Intermedia Communications. In amicus brief, FCC and DoJ disagreed with BellSouth that remedies in Telecom Act foreclosed antitrust claims. Case hinges on decision last year by 7th U.S. Appeals Court, Chicago, in Goldwasser vs. Ameritech that also dealt with conflict between Telecom Act and antitrust law. “The court should reject any argument that [Telecom Act] creates implied antitrust immunity,” DoJ-FCC said in brief filed March 28. Intermedia suit charged BellSouth with violating antitrust laws by not providing interconnection on reasonable terms.
Competition agreement should be part of next round of World Trade Organization (WTO) talks, European Union (EU) Competition Comr. Mario Monti said Fri. He raised issue with FCC Chmn. Powell and Dept. of Justice (DoJ) officials, he said, and planned to discuss it with U.S. Trade Representative Robert Zoellick. EU considers such accord “very important,” Monti said. As more countries create competition authorities, it would be good to include in WTO some agreement on “core principles” such as transparency, nondiscrimination between national and foreign companies, and due process, he said. Competition agreement could include concept of peer review process to ensure that laws passed by WTO members were in line with those principles, as well as some way to foster bilateral cooperation between different antitrust authorities, Monti said. It’s becoming increasingly clear, he said, that growing number of countries now back inclusion of competition framework within WTO that would support introduction and enforcement of competition laws. It’s also important to be clear on what “we do not want” in next round, he said, including having WTO review antitrust decisions made by member states’ respective regulatory bodies. Asked whether he sensed any change in U.S. opposition to competition agreement, Monti said that neither FCC nor DoJ was “particularly inclined” during his meetings to outline future U.S. policies. Other items EU intends to press for, he said, are further strengthening of bilateral cooperation in antitrust matters and global competition forum. European Commission clears “vast majority” of mergers and acquisitions in one month, Monti said, citing Boeing’s recent acquisition of Hughes’s satellite company. That speed and predictability is greatly appreciated by business community, he said.
FCC Common Carrier Bureau requested comment on letters filed by Verizon and Birch Telecom that raised questions about “most- favored-nation” (MFN) conditions in Bell Atlantic/GTE and SBC/Ameritech merger orders. MFN provisions allow competitors to opt into any parts of any interconnection agreement negotiated between incumbent and other competitive LEC. Verizon asked Bureau Feb. 20 to rule that its MFN requirement didn’t apply to any provisions involving intercarrier compensation for Internet-bound traffic. Birch filed related letter March 6 asking Bureau to interpret SBC merger condition as permitting it to incorporate provision relating to reciprocal compensation from existing agreement with Sage Telecom, approved by Tex. PUC, into its current or future interconnection agreements in Okla., Tex., Kan., Mo. Comments are due April 30, replies May 14 (CC 98-141).
NTIA and FCC released final reports Fri. providing details on challenges to sharing, segmenting or clearing Dept. of Defense- occupied bands and MMDS and ITFS spectrum, setting stage for what some see as need for high-level 3-way talks on possible compromise among FCC, Pentagon and Commerce Dept. DoD evaluation, appendix to NTIA report, said terrestrial military systems couldn’t vacate 1.7 GHz until 2010 and legacy space systems would need access until 2017, dates much later than timelines in federal 3G studies. Still, several industry sources said they were heartened by what they called realistic relocation cost estimates that NTIA provided for 3 options, which range from $2.2 billion to $4.5 billion. NTIA report laid out 3 options for band sharing or segmentation, including recently emerged alternative that involves out-of-band pairing and phased-in migration of incumbents. Despite alternatives, “this does not necessarily mean that the government band is the right choice for 3G,” Naval Rear Adm. Robert Nutwell said at NTIA briefing. He called on wireless industry to make “better case” for 3G spectrum needs.
FCC released order adopted March 22 that eliminated restriction on carriers bundling CPE and enhanced services at discounted prices (CD March 26 p4). It also clarified that all facilities-based carriers could offer bundled packages of enhanced services and basic telecom service at single price. Commission said action repealed regulatory requirements that “no longer make sense in light of current technological, market and legal conditions.” Requirements date back to 1980 Computer 2 order. (CC 96-61).
FCC review of broadcast station ownership caps won’t focus solely on market concentration rule, but also will take programming diversity into consideration, Chmn. Powell said March 29. He told House Telecom Subcommittee that Commission in May also would review broadcast-newspaper cross-ownership restrictions. NAB spokesman said it was “delighted that the FCC is going to expeditiously review” cross-ownership issue.