NCTA struck back at Consumer Electronics Retailer Coalition (CERC) late Tues. in continuing battle between cable and CE industries over DTV set labels. In 11-page filing with FCC, NCTA called again for Commission to reconsider its 3 proposed “Digital Cable Ready” labels for DTV receivers and instead adopt revised, more descriptive labels favored by cable industry. Accusing CERC of making “an unfortunate knee-jerk reaction to NCTA’s attempt to offer a constructive and pro-consumer labeling proposal,” cable group argued that CERC’s concerns about cable’s labeling proposals were “misplaced” because NCTA “merely has proposed more informative labels for the categories of DTV sets for which the FCC adopted labels.” NCTA also contended that CERC “is mixing apples and oranges” by confusing “the cable industry’s obligations under the navigation devices provisions of the Communications Act with the use of the term ‘cable ready’ in this proceeding.” Finally, NCTA said CERC “misrepresents” findings of cable’s focus group research indicating that consumers “reject the ‘Digital Cable Ready’ labels as inadequate and confusing descriptors of the DTV sets.” Group said CERC, which questioned findings and legitimacy of study, “offers no evidence to the contrary.”
Following months of anticipation, Intelsat finally begins 6- month quiet period today (Thurs.) before becoming private company July 18, Intelsat CEO Conny Kullman said at Washington Space Business lunch Wed. It’s final step in Intelsat privatization authorized by Orbit Bill (CD Aug 4 p2). Kullman said company would “complete all internal work” by May. Company must conduct IPO by 2002. Privatization of Intelsat has been one of major issues in satellite industry for years, with several companies, including PanAmSat filing numerous petitions at FCC protesting what many called “preferential treatment” of company (CD July 28 p11). Kullman called transition biggest step since 1964 founding.
FCC released 2000 biennial regulatory review Wed. that includes details on items that agency accepts for further review that were part of staff report released last fall. On wireless spectrum, review said agency accepted staff recommendation that spectrum caps that limited spectrum entity could hold in single market be considered. CTIA and several wireless carriers have been pressing agency to consider lifting spectrum cap on 45 MHz in all markets except rural areas, where cap is 55 MHz. Agency plans to consider notice of proposed rulemaking in “near future” that will consider “existing competitive conditions and technological developments that could affect the continued need for the cap.” Agency also accepted staff’s recommendation to consider excluding rural ILECs from requirement that independent (non-Bell) ILECs must offer long distance service through separate subsidiary. FCC said it would begin proceeding to seek comment on idea. In addition, it will ask whether it should consider waivers of that requirement for other independent ILECs that showed it created hardship for them. FCC Comr. Furchtgott-Roth said he was “heartened” by more detailed analysis in 2000 Biennial Review issued by agency Wed. Review includes staff report that analyzes regulations on “subpart-by-subpart” basis to determine whether they are needed, action that Furchtgott-Roth has championed in past. That level of detail offers “meaningful opportunity for debate about each section of our rules,” he said. He urged regulated companies to take active role in commenting on process that he said was “opportunity to keep our regulations consistent with marketplace and technological change.”
CARLSBAD, Cal. -- Following end of potentially contentious fight over DTV standards (CD Jan 17 p3), NAB TV board approved financing to start public campaign to “educate consumers on the benefits of digital TV.” To get under way in spring, planning will begin Feb. 6 at joint meeting with co-sponsor MSTV, NAB announced at close of 4 days of board meetings here Wed. Cost of effort wasn’t disclosed, but broadcaster said “we've already spent hundreds of thousands” on engineering studies to determine that 8- VSB standard should be favored over COFDM.
AT&T passed on chance to petition FCC for permission to use company’s planned spinoff of Liberty Media Group to satisfy Commission’s MediaOne divestiture requirements. FCC’s Jan. 16 deadline for written petition came and went without word from AT&T, which wrestled with agency last month over how to meet merger divestiture conditions. AT&T spokesman said MSO hadn’t planned to file petition and preferred to “not elaborate” on its previous statements. FCC Cable Bureau spokeswoman also declined comment. In unexpectedly tough order Dec. 21, Commission told AT&T to carry out its stated commitment to shed its 25.5% stake in Time Warner Entertainment (TWE) or place it in irrevocable trust for sale by May 19 even though company said it preferred to meet merger conditions by spinning off its Liberty Media programming unit (CD Dec 26 p1). But FCC said AT&T still could petition agency to modify order by Jan. 16 by submitting written request “with an appropriate showing as to why such a modification would serve the public interest.” AT&T spokesman said company stood by its earlier statements in which it agreed that it had elected to divest TWE to meet Commission’s Dec. 15 election requirement but insisted that it also was proceeding with plans to spin off Liberty. Issue also is key to FCC’s recent approval of AOL’s takeover of Time Warner (TW). In accepting AOL-TW deal last week, both outgoing FCC Chmn. Kennard and Republican Comr. Powell, widely expected to succeed him, stressed importance of severing ownership links between AT&T and TW.
Verizon resubmitted its application to FCC Tues. to offer long distance service in Mass. under Sec. 271 of Telecom Act. Verizon Senior Vp Thomas Tauke said new version incorporated company’s original application “and adds further evidence demonstrating that the company provides competitors nondiscriminatory access to DSL-capable telephone lines.” Verizon filed original petition Sept. 22 but withdrew it Dec. 18 after FCC Common Carrier Bureau said it didn’t have enough information to substantiate Verizon’s claim that it offered competitors nondiscriminatory access to DSL lines. Similar concerns were expressed by Dept. of Justice in Oct.
FCC proposed $327,000 in fines against American Tower Corp. (ATC), AT&T Wireless, SpectraSite and Telecorp Communications Tues. for violations of agency’s antenna structure rules. Commission ordered Enforcement Bureau to conduct “additional, more thorough investigation” of ATC compliance with rules. Largest, single proposed fine is against ATC for failing to properly light one antenna during construction, not registering 2 existing structures, failing to notify FCC of ownership changes on 24, not posting registration number on 9 other towers. To ensure air safety, tower owners must meet requirements on lighting, proximity of antenna structures to airports and monitoring to ensure lighting systems work properly. Commission called ATC’s violations of rules, which are designed in conjunction with FAA to ensure towers don’t pose hazards to aircraft, “serious.” FCC actions resulted from “routine investigations and inspections” by field offices of Enforcement Bureau, agency said. Enforcement Bureau also proposed $80,000 in fines to Telecorp, $18,000 for AT&T Wireless and $17,000 for SpectraSite for similar violations of antenna structure rules. Fines against those companies involved failure to light towers properly, failure to post registration numbers and failure to provide updates on ownership changes. As for ATC, FCC said its field agents “repeatedly notified” company about noncompliance. “The Commission expressed concern that in spite of notifications to ATC regarding its noncompliance and statements by ATC representatives that they would address the issue, Enforcement Bureau field agents continue to find violations of the antenna structure rules,” FCC said. In notice of apparent liability for forfeiture for ATC, Commission said most incidents involving failure to notify agency of ownership changes occurred after field representatives met with company officials. “Moreover, the fact that these violations occurred in various states across the country suggests that ATC has not engaged in a ’sweep’ of its antenna structures as its representatives stated that it would,” notice said. FCC said broader investigation of ATC was prompted by continued findings by field representatives of additional rule violations during routine inspections.
Regina Keeney, ex-chief policy counsel for Dell Computer and former chief of 3 FCC bureaus, moves to Lawler, Metzger & Milkman as partner… Jessica Wallace, legislative asst. to Rep. Tauzin (R-La.), is latest staffer to follow him to House Commerce Committee, where she will be telecom counsel… William Moll, ex-pres.-gen. mgr., WKRC-TV Cincinnati, appointed pres., Clear Channel TV, succeeding Ripperton Riordan, who plans to go into ministry… Ann Marie Cumming, NAB dir.- media relations, resigns to move to Germany with her husband, CIA official… Ann McGowan promoted to dir.-business development, Showtime Networks… Michael Norten, ex-WPGH-TV and WCWB Pittsburgh, appointed vp-sales and news, Video Networks… John deGarmo, ex-Scripps Networks, named senior vp-affiliate relations, Moviewatch… Stephen Castro, ex- NetStream, appointed regional sales dir.-San Francisco, NTT America… Glenda Davis, ex-Fujitsu Business Communications Systems, named pres.- CEO, MCK Communications… Bob Johnson promoted to vp-northeast, Nextel Communications.
Although she hasn’t formally announced her resignation, FCC Cable Bureau Chief Deborah Lathen confirmed she planned to leave Commission soon after its new Republican chairman took over. Lathen, who has run Cable Bureau since spring 1998 and presided over further deregulation of cable industry, told us Fri. that she hadn’t decided on departure date but “will ensure a smooth transition” to next bureau chief. She said she also hadn’t decided what she would do next. At Western Cable Show in L.A. in late Nov., Lathen said her plan was to complete AOL- Time Warner merger review and then “wiggle my toes in the sand.” She brushed off questions about her legacy, saying she wasn’t focusing on that and considered it “the height of arrogance” to spin others about one’s record of accomplishments. “The way you live your life is your legacy,” she said. “Everyone in Washington is always talking about their legacies… I've tried to have broader aspirations.”
U.S. Appeals Court, D.C., again overturned FCC’s broadcast EEO rules, this time saying both minority-based and gender-based rules “put official pressure upon broadcasters to recruit minority candidates, thus creating a race-based classification that is not narrowly tailored to support a compelling governmental interest.” Court ruled only on constitutionality of 2nd option (Option B) for broadcasters to meet EEO requirement, but said Option B wasn’t severable from first option so it threw out entire rule (CD Oct 2 p6, Jan 21/00 p1). FCC Chmn. Kennard called decision “a defeat for diversity. At a time when many Americans are outraged at the lack of minorities in prime time and in the boardrooms of America, the broadcasters have once again used the courts to strike down even a modest outreach effort.”