FCC DELAYS DTV MUST-CARRY DURING DIGITAL TRANSITION

In split decision that left broadcast and cable officials scrambling for clarification, FCC voted 3-2 late Fri. against requiring cable operators and DBS providers to carry both analog and digital signals of TV stations right now. Commission hadn’t actually announced decision at our deadline Mon., although action was said to be imminent. Sources said Commission adopted further notice of proposed rulemaking (FNPRM) that would set high bar for broadcasters to prove that they were entitled to must-carry rights for 2 signals during digital transition. Notice apparently seeks comment on whether dual carriage would violate cable’s constitutional rights to free speech, as cable has insisted. But details remained fuzzy at our deadline.

Well-placed sources confirmed press reports over weekend that now-departed FCC Chmn. Kennard, new Chmn. Powell and Comr. Furchtgott-Roth voted for notice in unusual coalition of one Democrat and 2 Republicans. Democrat Comrs. Ness and Tristani opposed notice. Sources attributed FCC’s delay in release to dissents being drafted by both Ness and Tristani Mon.

Dealing another blow to broadcasters Fri., FCC also ruled that stations’ DTV must-carry rights were limited to single video channel and any programming-related data, not several multicast channels, sources confirmed. Commission said digital stations could claim must-carry status for entire bit stream of 6 MHz channel only if they broadcast high-definition TV (HDTV) programming. But agency didn’t spell out what it meant by program-related material, which is being contested on analog side in regulatory fight between Time Warner Cable and Gemstar.

FCC did grant cable must-carry status to DTV-only station, WHDT-DT, which is preparing to start broadcasting in Stuart, Fla., part of Greater West Palm Beach market. In order issued late Fri., Commission ruled that “the licensing and impending operation of WHDT advances the digital transition and that guaranteeing cable carriage to digital-only stations will encourage other broadcasters to commence digital television service in a more rapid manner.” As transitional measure, agency said, station can elect whether its signal will be carried as digital or converted analog signal, as station has proposed. FCC said status and duration of any such converted analog carriage agreement would be subject to review after 2003 as part of agency’s consideration of DTV transition progress.

While ruling immediately applies only to WHDT, FCC officials said it “would have broader applicability” to potential DTV-only stations in other markets. They said other broadcasters were considering similar moves. WHDT, owned by broadcaster Guenter Marksteiner, said it planned to show HDTV programming from German news network Deutsche Welle, such syndicated series as The Rockford Files and local news program.

FCC, NCTA and NAB officials declined comment on most of Commission’s DTV moves Mon., citing need to study actual notice and order. But NCTA spokesman did criticize WHDT ruling and sought to downplay its impact, calling case “an oddity” and “an anomaly.” “To us,” he said, “it does nothing to advance either the stated purpose behind must-carry or the digital transition.” - - Alan Breznick