And now there’s just one of Big 4 TV networks retaining membership in NAB, as CBS announced its withdrawal Wed. afternoon over Assn.’s continued support of FCC’s 35% TV station ownership cap. NBC and Fox withdrew more than year ago over same issue, while Disney’s Preston Padden said ABC planned to remain NAB member (CD March 28 p7). CBS acted after NAB TV board held conference call Tues. morning and refused to rescind its support of cap -- position that led NBC Pres. Robert Wright to charge that NAB had been “captured” by group-owned “publishers” (CD April 2 p2). In 2-paragraph announcement, CBS said: “We have been proud NAB members for many years, but it has recently become clear that we have a fundamental issue on which we and certain of the NAB’s television members disagree… It has now become clear that we cannot remain within an organization that is working actively against [CBS’s] objectives.” In pulling out of NAB, CBS also took along Infinity Bcstg. and its 170 radio stations, saying: “CBS and Infinity will continue to work with others in the industry” to protect free, over-air broadcasting. In statement, NAB said simply: “It is regrettable when any member leaves the Association.” ALTV Pres. James Hedlund was more outspoken. “I am very saddened” by CBS-Infinity pullout, he said. “With all of our challenges, now is the time to stick together and present the Congress and the FCC with a unified front. ALTV strongly supports the NAB and hopes that all of us in the industry can find ways to mend our internal fences.”
Ultra wideband (UWB) developer Fantasma Networks told FCC Tues. it should bifurcate UWB rulemaking between devices that operate in GPS bands and those operating elsewhere in spectrum. Fantasma responded to broad group of wireless, GPS, satellite radio and air transport interests that urged FCC last week (CD March 28 p1) not to take final action on operation of UWB equipment under Part 15 rules without issuing further proposed rulemaking (NPRM) first. Fantasma, whose technology operates in non-GPS bands, urged FCC to split off non-GPS and GPS parts of proceeding and “move now to authorize UWB technologies that do not operate on GPS frequencies.” Group wrote FCC Chmn. Powell that further NPRM didn’t contain specific enough regulatory language for agency to move directly to final rule without providing additional time for comment. Fantasma said coalition letter “greatly overstates the requirements” of Administrative Procedure Act. “Virtually every aspect of UWB technical operation outside the GPS frequencies, interference characteristics and service potential has been posited, argued and counter-argued exhaustively,” Fantasma said. It sought further NPRM for all UWB technologies, making no distinction based on bands where devices operate, company said. Letter appeared to be “dedicated to delaying the introduction of all UWB technologies, even though the impetus and logic of the ex parte letter applies only to UWB technologies that would operate on GPS frequencies,” Fantasma wrote.
Satellite Bcstg. & Communications Assn. (SBCA) won round in must-carry lawsuit with federal govt. Mon. Fourth U.S. Appeals Court, Richmond, rejected petition by U.S., NAB and others to stay constitutional challenge to FCC’s must-carry rulemaking filed by SBCA and EchoStar. U.S. and NAB had asked court to delay hearing on appeal until after FCC ruled on several petitions for reconsideration filed against must-carry regulations. In addition, U.S. wanted challenge continued until after U.S. Dist. Court, Alexandria, Va., ruled on challenge to must-carry rules brought by SBCA, EchoStar and DirecTV Sept. 20. SBCA Pres. Charles Hewitt called it “significant victory” for satellite consumers, saying decision “brings us one step closer to resolving this contentious issue.”
Bipartisan group of 5 senators urged FCC Chmn. Powell to reject interpretation of Sec. 310(a) of Communications Act that Sen. Hollings (D-S.C.) has backed for evaluating proposed VoiceStream-Deutsche Telekom merger. Without naming Hollings, senators referred to requests agency has received to interpret Sec. 310(a) to bar telecom carrier with substantial govt. ownership from indirectly owning U.S. wireless licensee. Sens. Smith (R-Ore.), Lugar (R-Ind.), Cantwell (D-Wash.), Brownback (R- Kan.) and Murray (D-Wash.) signed letter. “In our view, such an interpretation of the law would place the United States in direct violation of its commitments under the World Trade Organization (WTO) agreement on basic telecommunications and the General Agreement on Trade in Services,” senators wrote to Powell. “We believe it is crucial that the FCC not back away from or undermine from or undermine that agreement.” WTO commitments obligate U.S. to not bar foreign telecom companies, including foreign govt.- backed carriers, from entering U.S. market or obtaining controlling interest in U.S. wireless licenses, senators wrote. Hollings’s interpretation of Sec. 310 and how it applies to DT- VoiceStream deal has become touchstone of ex parte filings at FCC on pending merger. He has argued that Sec. 310(a) supersedes Sec. 310(b) of Communications At in cases in which foreign govt. has indirect control of radio licensee, barring approval of indirect foreign govt. interest that confers control of U.S. license. VoiceStream and Deutsche Telekom wrote FCC Comr. Tristani Mon., contending that if Hollings’s interpretation had been followed, Commission wouldn’t have approved Vodafone AirTouch merger or Vodafone-Verizon wireless venture.
American Cable Assn. (ACA) representatives met with FCC Cable Bureau staffers recently to press their case for no open access mandates on smaller cable operators. In March 27 ex parte filing in Commission’s open access inquiry, ACA officials argued that “administrative burdens and costs of regulated open access combined with regulated rates would threaten the viability of offering these services” because of thin margins for high-speed data services in smaller markets. They also contended that connection costs from headend to Internet backbone could “result in unattractive, even negative rates of return for ISPs in smaller markets. They cited as example case of Millennium Digital Media, smaller MSO that provides simple Internet connectivity via cable modems with no start page or other content services, unlike its bigger counterparts.
FCC Common Carrier Bureau released report, Trends in International Telecommunications Industry, consisting of 29 statistical tables tracing trends in U.S.-international telecom industry. Tables contain information on international traffic, circuits, pricing and accounting rates taken from carrier tariffs, accounting rate agreements and annual statistic reporting such as international traffic data and circuit status reports. Among FCC statistical findings: (1) Average revenue billed per minute of international telephone service declined to 53 cents in 1999 from $1.34 in 1980, while number of U.S. billed minutes climbed to 28.4 billion from 1.6 billion in same period. (2) Private line revenue, while small percentage of total international long- distance services, grew rapidly in recent years to $1.2 billion in 1999 from $500 million in 1995. (3) In 1975, international telephone service was less than 5% of U.S. carrier long-distance revenues; by 1995 it had grown to 19% of overall toll revenue, then dropped to 18% in 1997 and 17% in 1999. Report said relative amount of international toll revenue was declining due to significant price reductions for international calling -- www.fcc.gov/ccb/stats (file name ITRND00.ZIP or ITRN00.PDF).
FCC Common Carrier Bureau Accounting Safeguards Div. cancelled meeting scheduled for April 10 on policies and procedures for independent audits used to evaluate compliance with Commission rules. Cancellation was due to scheduling problem and meeting will be rescheduled -- Anthony Dale, 202-418-2260.
Citicasters is subject to $14,000 fine for broadcasting indecent language on KEGL(FM) Ft. Worth, FCC Enforcement Bureau said. Complaint included transcripts and pictures taken from station’s Web site.
Major telecom companies and satellite interests are expected to challenge plan proposed by ICO-Teledesic Chmn. Craig McCaw to allow him to develop terrestrial cellular service using radio spectrum reserved for satellite systems. New ICO first offered hint of plan in unpublicized March 8 letter to FCC Chmn. Powell that suggested New ICO, which recently emerged from bankruptcy, would have to fold without substantial new spectrum approval from U.S. and global regulators (CD March 15 p3). Satellite rivals question whether proposed plan by New ICO will attract enough new customers to drive rates down far enough so price of phones also drops. If prices fall, McCaw believes satellite operators could make better use of spectrum and subsidize cost of building network for rural services, which is major priority at Commission. However, cellular carriers are expected to balk at plan because many of them had to pay for their spectrum at auctions and they believe ICO proposal would seem to give away valuable spectrum free to telecom competitors.
Granting Viacom delay in complying with broadcast ownership limits would violate public’s First Amendment right to diverse quality information, said Consumer Federation of America and United Church of Christ in joint brief to U.S. Appeals Court, D.C. (CD April 3 p4). Public’s First Amendment rights “compete” with Viacom’s claimed rights, they said. Interim relief from cap could last for years while FCC considered remanded ownership caps, filing said, and that would “forc[e] the public to endure for an indefinite period concentration within the media on a scale the FCC determined is contrary to the public interest… and which Congress has determined is generally contrary to the public interest.” Groups also said Viacom was unlikely to succeed in final decision, based on merits of its arguments, and company hadn’t met procedural requirements.