Split FCC Seen Voting on Delayed $17 Billion Adelphia Deal

The Adelphia deal pending at the FCC may be voted on by a split Commission due to continued delays in confirming Robert McDowell as 5th commissioner, industry sources and analysts said. An order to approve the deal, worth about $17 billion, hasn’t surfaced on the 8th floor, a source said Fri. And the McDowell nomination has spent months becalmed (CD May 1 p9). With a July 31 deadline for Comcast and Time Warner to finish the purchase (CD April 13 p11), chances for tougher conditions increase with each passing day.

“The problem with… Senate confirmations is there’s nothing more unpredictable than the Senate schedule,” said Precursor Pres. Scott Cleland, noting that this incomplete FCC exhibits a familiar pattern. “When there’s a 2-2 split, there is leverage, and there is a powerful interest to cooperate in order to get concessions” among members, he said. Analysts wouldn’t speculate on what curbs may be imposed on the Adelphia deal. Critics want net neutrality and program access conditions.

“At 2-2, the companies clearly face a greater chance of conditions,” Stanford Washington Research Group’s Paul Gallant said: “But it’s just not clear when the third republican Commissioner will arrive.” The FCC should give independent programmers a chance to get carriage on systems Comcast and Time Warner own, the America Channel said last week, renewing its frequent requests. The Commission likely will take up such concerns in a separate cable ownership rulemaking that’s “teed up,” said Gallant.

“Without relief to open the cable platform to independent programmers in this proceeding, it is unlikely that independent programmers will be motivated to come forward in the future,” said an ex parte America Channel filing. “The Commission’s review of this transaction must be forward looking,” said the filing. It urged the FCC to ask the firms more questions on how they decide to carry networks. Comcast and Time Warner responded that the Adelphia deal will benefit consumers, dismissing the validity of the America Channel’s complaints. Adelphia declined comment. “The Adelphia transaction is still under active review, and we don’t comment on the details of active proceedings,” said an FCC spokesman.

FCC Chmn. Martin is in no hurry to okay the deals, Media Access Project Senior Vp Harold Feld said: “He’s made it clear that he proceeds at his own pace and as he deems appropriate… If the chairman told staff that they really needed to make a recommendation and send a draft order up to his office, the staff is in a position to do so.” Media Bureau review of the transaction seems to be winding down, said Feld, calling the 11-month-long review, almost twice the amount of time the FCC aims to take, “time well spent.” - Jonathan Make