FCC PROPOSES TO FINE TVs FOR NON-COMPLIANCE WITH DTV DEADLINES

FCC launched rulemaking for what it said is further effort to “prevent undue delay” by TV stations in digital roll-out. Major part of proposal is system of “graduated sanctions” -- which could lead to revocation of digital license -- contemplating “an increasingly severe level of sanctions” every 6 months for stations that haven’t converted to digital transmissions, Commission said.

Stations facing fines would be those that hadn’t demonstrated that their failure to switch to digital was due to circumstances that were “unforeseeable or beyond their control” or licensee was facing “legitimate financial hardship” and made such a showing, FCC said. While rulemaking is under way, agency said, staff would have authority to fine non-complying stations on case-by-case basis. Letter of admonishment would be sent to station before any proposed fine is issued, FCC said. In hurry-up rulemaking, comments will be due 30 days after notice is published in Federal Register, replies 15 days later.

In related action, FCC took tougher stance on 9 TV network affiliates in top 30 markets -- which had Nov. 1, 1999, digital build-out deadline. Their latest requests for extensions were presented to full Commission because stations’ already had received 2 -- maximum staff is authorized to grant. They were granted additional 6-month extensions, with Viacom’s KTVT Ft. Worth (extended because of delay in delivery of new antenna system) ordered to report to FCC within 90 days on progress being made. Other top-30 market stations receiving 6-month extensions and reasons: Zoning delays -- Denver stations KMGH-TV, KCNC-TV and KUSA- TV, WTIC-TV Hartford (also because of pending rulemaking), WVIT New Britain, Conn.; pending rulemaking -- WFSB Hartford and WTVJ Miami; interference to cable -- WBBM-TV Chicago.

FCC said its Nov. policy statement permitting some DTV stations to operate with less than full power wouldn’t apply to network affiliates in top-30 markets. Staff said about half-dozen digital stations now are transmitting less than fully authorized power and decision will be made later about how to handle those cases.

Briefing reporters following meeting, Media Bureau Chief Kenneth Ferree said of about 900 requests for waivers filed before May 1 deadline, 580 received 6-month extensions. Of those that weren’t granted, he said letters of inquiry will be sent to stations, which will have to show “good faith progress” in their efforts to begin digital transmissions, staff said.

Chmn. Powell said rulemaking demonstrates “we're going to be quite tough if we need to be in order to get the [transition] done.” Proposed fines “give clear notice,” he said, of what FCC’s “expectations are.” In separate concurring statements, Comrs. Copps and Martin said they were “extremely reluctant” to approve further extensions for affiliates in top 30 markets. “I am troubled by the possibility that a series of waivers… could seriously undermine our efforts,” Copps said. In future, he expressed “hope” Commission “will be able to focus its energies on positive news rather than on more delays.”

Martin said build-out deadlines are essential element of govt.’s plan to move to digital forward and FCC’s new “proposal is stringent, yet fair.” Comr. Abernathy said “while I am not unsympathetic to the challenges broadcasters are facing, we must continue to work toward moving the digital transition forward… Thus, I feel strongly that broadcasters must comply with the established transition schedule and we must strictly enforce our rules.”