FCC said Time Warner was subject to effective competition in Lima, O., and more than 30 surrounding franchise areas, rejecting opposition from Watch TV Co. (WTC) which provides competing multichannel video service, and cities of Piqua, Sidney and St. Marys. Granting TW petition, Commission said company had provided evidence that: (1) Competitive service was provided by LEC or its affiliate. WTC hasn’t disputed that it’s wholly owned subsidiary of Benton Ridge Telephone Co. (2) WTC provides comparable programming. Commission said neither Communications Act nor its rules mandated station-specific comparability to extent argued by cities, and agency was satisfied WTC’s channel lineup met its programming comparability criterion. TW had asked Commission to dismiss its requests relating to Piqua and Sidney saying it was unable to confirm whether WTC’s service was being actively marketed in those communities.
FCC denied applications for review of International Bureau’s authorization to General Communications Inc. (GCI) to land and operate Alaska United Cable System. Bureau’s Telecom Div. authorized Alaska United as non-common carrier undersea fiber cable system, spanning Pacific Northwest of U.S. and Alaska. ATU- Long Distance, TelAlaska/ASTAC Long Distance and Alaska Network Systems each had asked FCC to review order in Dec. 1997. Challengers contended GCI should have been required to operate cable on common carrier basis to preclude competitive harm. FCC stood by division’s decision, pointing out availability of other telecom facilities along route, including Northstar Cable System. Commission adopted order Feb. 1 and released it last week. Comr. Furchtgott-Roth issued separate statement that dissented in part, citing his “longstanding view” that FCC lacked authority over undersea cable landing licenses. He has said he doesn’t believe President can grant authority to FCC to approve undersea cable systems under Cable Landing License Act. Apart from that objection, Furchtgott-Roth said “perhaps the most troubling aspect of today’s decision is that it took 3 years for the Commission to reach it.” He apologized to companies, saying they deserved better treatment. “Parties are entitled to the expectation that their Commission business will be resolved in a prompt manner,” he wrote. “By any measure, today’s order fails that test.”
Rep. Cubin (R-Wyo.) reintroduced bill (HR-496) to deregulate small telcos serving fewer than 2% of nation’s access lines. Similar bill (HR-3850) passed House last year and is being backed in Senate this year by Sen. Burns (R-Mont.). Cubin said FCC has promised to address question of whether its regulations are too cumbersome for small telcos, but “the agency’s time frame on issuing those proposed rules has changed like the Wyoming wind. It’s time those obligations are met, and this legislation would solidify what the FCC has promised to do for a long time.” She said she has “bent over backwards to accommodate many of the initial concerns that some members had with this legislation and have incorporated a majority of their helpful suggestions.” Cubin said she looks forward to FCC’s “thoughtful suggestions as well as their own internal changes.” Initial co-sponsors for her bill are Reps. Gordon, Pickering, Barrett. House Commerce Committee Chmn. Tauzin (R-La.) expressed support for Cubin’s efforts, saying she’s dedicated to “establishing regulatory common sense for small and mid-size telecommunications companies.” He said bill is “entirely consistent” with his own efforts to restructure FCC.
Military Network is planned for end of year by Jeff Davidson (ex-Gannett), Carol Lafever (ex-ABC) and Tom McKnight (ex-FCC). Davidson is chmn., McKnight CEO, Ed Feuerherd chief program officer. Other principals: Robert Wussler, vice chmn.; Larry Meli; James Webb, former Secy. of Navy; Bruce Crockett, former Comsat CEO; Diane Powell, ex-NBC. Group bought assets of Military Channel, which ceased operations.
Group of 37 economists told FCC it shouldn’t directly create secondary markets for spectrum but should put in place more flexible rules that would enable such markets to emerge. In response to notice of proposed rulemaking on how FCC could pave way for secondary market for wireless spectrum, economists said wireless licensees should be subject to restrictions only on out- of-band emissions and anticompetitive concentration. “With few exceptions, spectrum continues to be offered to the market only as allocated and no price can be offered to reallocate it from the officially designated use,” group wrote. Group included Thomas Hazlett of American Enterprise Institute, Stanford U. Prof. Roger Noll, former member of White House Council of Economic Advisers, and Martin Baily of Institute for International Economics. Filing encouraged FCC to free up spectrum rules “much farther than the modest measures proposed in the notice.”
Indecency complaint against KLOU(FM) St. Louis “deserves more than a dismissal” because of lack of adequate information, FCC Comr. Tristani said in statement on Enforcement Bureau action. Bureau, in Feb. 7 letter to complainant, said “reference to excretory organs alone is not sufficient to find material indecent.”
“ALTS is going on the offensive,” Pres. John Windhausen announced at Thurs. news conference, as he and others in CLEC industry began campaign for tougher enforcement of rules on local phone competition. ALTS members said they would ask Congress to consider strict penalties for Bell companies that failed to comply with Telecom Act’s market-opening provisions, or even splitting Bells into separate wholesale and retail units.
FCC sought comment on The Weather Channel (TWC) request for clarification that it was in compliance with aural tone requirements of video description rules when it provided aural tone prior to first time that crawl or scroll containing emergency information was carried. Commission has said that when broadcast station or multichannel video programming distributor (MVPD) provides emergency information through crawl or scroll, it must be accompanied by aural tone. At issue, TWC said, are 2 of its Weather Stars systems that affect only 6.5% of its subscribers. It anticipated replacing all Stars IIIs systems, which are technically capable of producing aural tone only before they carry crawl or scroll, with more advanced products by 2003-2004, while Stars Jr., which currently can’t offer aural tone, may be upgraded to level of Stars IIIs. Saying total cost of replacing both systems would be more than $34 million, TWC said its circumstances were “unique and the interpretation it seeks will be an especially narrow one.” If FCC doesn’t grant TWC’s request, then Commission as alternative should grant “undue burden” exemption, it said.
Cox’s action in continuing to collect franchise fees on cable modem service in jurisdictions outside 9th U.S. Appeals Court, San Francisco, has been challenged in suit by 2 Va. customers in U.S. Dist. Court, Roanoke. MSO has notified communities in 9th Circuit jurisdiction that it will stop collecting franchise fees on high- speed Internet service, citing court ruling classifying cable modem service as telecom offering. Forcing only customers in states outside 9th Circuit to pay franchise fee is “unjust” and “unreasonable,” said plaintiffs Kimberly and William Bova, who are seeking class action status. By exempting subscribers in Ariz., Cal., Ida. and Nev. from franchise fees, Cox gave those customers “unreasonable preference or advantage,” plaintiffs said, and all franchise fees levied by company were unlawful charges, “entitling customers to a refund.” They alleged that Cox previously took position that its service was cable to avoid FCC regulation under Title 2, but reversed its position after 9th Circuit decision. “Cox appears to adopt contradictory positions regarding the classification of cable modem service as part of a relentless effort to avoid any government regulation for its own financial benefit at the expense of its customers,” they said. Although Cox acknowledges that cable modem service is telecom service in certain areas, it refuses to comply with laws protecting customers such as rate filing laws. Question of law and facts raised by plaintiffs include: (1) Whether Cox violated Title 2 of Communications Act. (2) Whether Cox could continue to impose franchise fee on cable modem service in other states after discontinuing it in 9th Circuit jurisdiction. (3) Whether Cox’s monthly subscription rates, which included franchise fee on cable modem service, were just and reasonable.
FCC Enforcement Bureau is proposing to fine WCOM(FM) Bayamon, P.R., $21,000 for broadcasting indecent material Original complaint was accompanied by tape of broadcast, and station admitted carrying material. Bureau said broadcast contained “graphic, patently offensive discussions of sexual activities or organs.”