Suit in Cal. State Superior Court charging Exec. Producer Mark Burnett, CBS and others with fraud in production of network’s reality program Survivor has been sent to FCC by plaintiff and former contestant Stacey Stillman. In suit, filed Feb. 5 in San Francisco, Stillman accused Burnett of violating Sec. 508 of Communications Act -- which was added to Act following rigged quiz shows in early 1960s. Section makes it crime “to engage in any artifice or scheme for the purpose of prearranging or predetermining in whole or in part the outcome of a purportedly bona fide contest.” Stillman claimed Burnett and others connected with program conspired to induce other contestants to vote her off program in early episode, saying: “Defendants violated the law by interfering in the voting decisions of the Survivor contestants, which determined, in whole or in part, the outcome… Defendants… supplied to certain contestants special and secret assistance whereby the outcome of the purportedly bona fide contest of the Survivor was in whole or part prearranged and predetermined.” Commission had no comment. Meanwhile, defendants in Stillman suit filed countersuit in L.A. court charging breach of contract, extortion, defamation and disparagement.
FCC Chmn. Powell would like to see changes in Commission’s operation so agency could react better to new technology and other developments, he told news media Thurs. after Commission’s open meeting. He wouldn’t outline his specific plans -- “stay tuned,” he said in answer to reporter’s request for more details. However, he endorsed calls by agency staff for hiring and retaining more engineers, beefing up technical expertise of agency, improving coordination among bureaus in areas such as spectrum management. Agency needs to be smarter and faster, Powell and others said. When reporter noted that many chairmen had pledged better operations, Powell responded: “It’s clear where we want to go. I'm going to die trying… You can judge me when we're finished. It’s not window dressing.”
FCC should act quickly on point system to select among applicants for noncommercial educational broadcast licenses (MM 95-31), Media Access Project said in ex parte filing. Although participants may disagree on details of selection system, group said they all agreed decision was needed to allow Commission to begin eliminating backlog of mutually exclusive applications, some of which have been waiting nearly 6 years. Separate filing said freeze on new applications had added to problem, since many stations couldn’t apply for Commerce Dept. funding for upgrades.
Former FCC Chmn. William Kennard was honored for “diversity agenda” at private Black History Month Reception hosted by civil rights leaders, industry lawyers and former FCC colleagues Tues. in Washington Event was organized by Black Entertainment & Telecom Assn. (BETA). FCC Chmn. Powell attended briefly and praised Kennard for his “commitment and outstanding work” during tenure at Commission. BETA Pres. Talib Karim, who was hired by Kennard at FCC before beginning private practice, said policies of Kennard “not only benefitted blacks, Latinos, Native Americans and other historically disadvantaged groups,” but he “opened up opportunities for small business owners and ordinary consumers by encouraging and promoting competition” in telecom, broadcasting and cable industries. “A lot of us have rested upon his shoulders and it’s now up to us who follow to continue his legacy.” Kennard said he was humbled and “touched by expressions of love” demonstrated at event that attracted overflow crowd of 200, including FCC’s Tom Tycz, NTIA Dir. Greg Rohde, NAB Vp Dwight Ellis, civil rights leader Dick Gregory, lobbyist Tom Hart, Northpoint Vp Toni Cook-Bush, Minority Media Telecom Council Exec. Dir. David Honig, representatives of Black Entertainment TV, AOL, NCTA, Black Entertainment TV, National Assn. of Minorities in Communications (NAMIC), National Bar Assn. and TV commentator Maureen Bunyon. As first African-American chmn. of FCC, Kennard said it was “significant” that he “won’t be last” with ascension of Chmn. Powell.
Requiring broadcasters to post public interest filings on Web sites wouldn’t be change of policy, just “responding to changed conditions, including the development of the Internet and the fact that most stations have Web sites,” public interest groups led by United Church of Christ said in comments on FCC rulemaking (MM 00- 168). Groups said posting (CD Feb 21 p8) simply makes files “consistent with modern means of accessing information” and wouldn’t impose new programming requirements.
With many small-market broadcasters delaying move to DTV, Shockley Communications went opposite direction and was quick to equip its 6 TV stations for high-definition transmissions once FCC set parameters -- and long before Commission’s May 1, 2002, deadline for group’s small-market stations to go digital. Commission FCC official said Shockley was only small group to move so quickly into digital. Hundreds of stations still haven’t installed necessary equipment and are taking a “wait-and-see attitude” -- particularly in markets below 100. Typical viewpoint is that of Michael McKinnon, owner of TV independent station in San Diego and 2 ABC affiliates in Tex., who told us last spring: “I'm going to be the No. 3 or No. 4 guy in digital in my markets… I want the other guys to get an arrow in the back” (CD March 23 p6).
FCC affirmed Enforcement Bureau order year ago that found GTE Wireless of the South had violated regulations on service area boundaries. Violations involved boundaries of 3 cellular towers overlapping cellular geographic service area licensed to Bachow/Coastal in Gulf of Mexico. Commission also affirmed ruling that directed GTE to modify signal strength to rectify extensions of its boundaries. GTE petitioned for review of decision, disputing Bureau conclusion that Sand Island didn’t extend southern boundary of its cellular area beyond coastline and into Gulf. GTE relied on settlement decree between U.S. and Ala. approved by U.S. Supreme Court that stipulated that Ala. coastline included Sand Island.
Teeing up reciprocal compensation issue on Hill, House Commerce Committee Chmn. Tauzin (R-La.) has written to FCC Chmn. Powell and several CLECs asking for information on issue “so we can work together to fairly resolve this matter once and for all.” In letters sent Feb. 15 to Electric Lightwave, Focal, Intermediate Communications, ITC Deltacom, Pac-West Telecomm and WorldCom, Tauzin asked for detailed information on their reciprocal compensation payments, revenues and associated costs. For example, he asked for how much money they had received over 4 years in reciprocal compensation and how much they had paid out. He also asked percent of their total revenues generated by reciprocal compensation. He said he was particularly interested in arguments that eliminating reciprocal compensation would require CLECs to raise their connection rates for ISP customers, which might then pass costs onto end users. Tauzin asked Powell for additional information, saying, for example, he would like material “detailing how a CLEC’s costs of routing a dial-up Internet call typically compare with a CLEC’s costs of completing a 2-way voice local telephone call.” He asked whether there were differences in types of network facilities used for those 2 kinds of calls and requested that FCC brief his staff on agency’s “activities and views” on issue. In letter to Powell, he said it had been 4 years since ALTS asked for clarification on reciprocal compensation dispute and “we still have no resolution.” FCC has made some “nondecisions” in meantime but it still was unclear what calls were entitled to reciprocal compensation. Industry sources said they expected Tauzin to come out with wide-ranging bill soon that would add reciprocal compensation to data LATA provisions sought by Bell companies.
FCC Cable Bureau Chief Deborah Lathen proposed Thurs. that Commission consider adopting period of regulatory forbearance for new cable and possibly other services. In most provocative part of FCC general meeting, Lathen suggested that agency weigh creating “some type of safe harbor” or “perhaps some type of moratorium” to allow nascent technologies and services to grow, “at least for a little while.” Citing theoretical example of young ISP that seeks to offer cable programming by streaming video over DSL lines, she urged Commission to “take a step back” and “think outside the box” before slapping regulatory classification on such new services. “Why not get rid of the box?” she asked, adding that she didn’t have more specific plan.
Correction: Attorney representing FCC in U.S. Appeals Court, D.C., oral argument on reciprocal compensation Tues. was Lisa Boehley (CD Feb 21 p 3).