Arbitration methods in the FCC Adelphia order won praise from 2 industry executives as a model the agency might use in programming spats between independent networks and pay TV firms. Conditions on the $17 billion deal apply mediation only to regional sports networks (RSNs) and leased access channels (CD July 24 p2). Doing likewise in other cases would be good policy, said the executives -- though the FCC isn’t expected to write such a rulemaking soon.
TiVo is trying to keep CableCARD installation “issues from marring its new Series3 HD PVR, including “proactively” educating cable operators on the product, the company told the FCC in an ex parte filing. The Series3, which supports up to 2 CableCARDs, is being tested in several markets and soon will be available at retail, TiVo told cable operators in a July 11 letter included in the ex parte. The letter urged cable firms to “make any necessary preparations” to support customers who request 2 CableCARDs for Series3s. TiVo has heard of cable installers “refusing to install or support” CableCARDs in the field, the company said: “We wanted to proactively educate MSOs about this product before it is widely distributed to prevent any misunderstandings like this from occurring in the future.” The letter came with a one-page “instruction guide” for CableCARD installers to be packaged with each Series3. It urges buyers to “please save this sheet and present it to the installer upon arrival.” Since CableCARDs debuted in 2004, cable and CE have been at one another’s throats. CE blames cable’s foot- dragging for CableCARD installation problems. Cable counters that problems have been minimal, fingering faulty DTV sets. In its ex parte on an FCC rulemaking, TiVo sought FCC assurances that CableCARD-ready products like Series3 will continue to work with cable systems using switched digital video technology. TiVo fears consumers using such products won’t have access to the same channels as those who lease set-tops from MSOs, endangering the market potential of products like the Series3. In meetings July 14 with FCC staffers, “TiVo emphasized that it is not against cable’s use of switched digital technology,” the filing said. It “simply wants” assurances that cable operators adopting the technology will “take whatever actions necessary” to be sure subscribers CableCARD-ready boxes like the Series3 “have equal access to the same digital content offerings available to subscribers with MSO-leased set-top boxes,” TiVo said.
The FCC assessed $298.8 million in regulatory fees due by the end of the fiscal year, 6.67% more than last year. The total includes an extra $10 million mandated by a govt. debt reduction program. Few changes were made in the way fees are assessed, leading FCC Comrs. Adelstein and Copps to object. Copps said he concurred in the decision “to emphasize my long-held… belief that the Commission should consider opening a rulemaking to address the adjustment of regulatory fees” to reflect changes in regulated industries. Adelstein concurred in part “because I remain troubled with the Commission’s inability and reluctance to consider changes that undoubtedly occur from time to time in the costs of regulatory fees for individual services.” In approving the new fee schedule, the Commission rejected a proposal by NCTA and the American Cable Assn. to apply the same per-subscriber assessment for DBS as to cable operators. DBS is assessed per license, which NCTA calls outdated. But the FCC was “not persuaded” of the need for modifications, it said: “The existing regulatory fee classification and related methodology has ensured that regulatory fees are reasonably related to the benefits provided by the Commission’s activities.” On 2 other points, the FCC said: (1) It adopted a framework for broadband radio service regulatory fees recently, but hasn’t time to implement it. (2) A petition by VSNL Telecom urging the Commission to modify the international bearer circuit fee rules for private submarine cable operators is still pending.
The FCC approved the $17 billion Adelphia deal in a rare split vote under Chmn. Martin. The order avoided net neutrality rules while agreeing to a leased access rulemaking backed by Comr. Adelstein. Adelstein issued a partial dissent to the order approving the deal. He raised concern that it lacked a net neutrality condition, on which sources had expected the FCC to punt (CD June 28 p2). Comr. Copps voted against approval. The Commission set broad mandates on sports programming arbitration in cases involving networks owned by buyers Comcast and Time Warner and channels seeking carriage on their systems.
The Senate Commerce Committee Wed. passed 15-7 an 11- title telecom bill the excludes Democrats’ strict net neutrality provisions. The panel concluded work after 3 days spent marking up the sweeping measure, dealing with about 215 amendments. Wed. the committee adopted amendments that would institutionalize a moratorium on Internet taxation, turning away amendments on net neutrality, a la carte programming and buildout requirements in franchise areas for video providers.
The FCC is teeing up a notice of apparent liability (NAL) against a data broker for violating customer proprietary network information (CPNI) rules. It’s to be voted on at the FCC’s July 13 agenda meeting. The data broker item is expected to be the highlight of the meeting, which also will include a notice of proposed rulemaking on telecom relay services (TRS) and an order and NPRM addressing rules for wireless medical devices, sources said Fri.
FCC Chmn. Martin won approval for a media ownership cap review, but caught flak from FCC Democrats because the inquiry, while wide-ranging, insufficiently addresses local broadcast obligations. In a concession to Comrs. Adelstein and Copps (CD June 21 p2), the ownership docket will include a summary of filings from a 2003 localism notice of inquiry. Even so, the 2 partially dissented.
Comments reaching beyond discussions by its blue ribbon panel on Hurricane Katrina are being sought by the FCC. The window opened in a notice of proposed rulemaking asking follow up questions on a report by the Independent Panel Reviewing the Impact of Hurricane Katrina on Communications Networks (CD June 20 Special Report). While easy to miss, the sentence involved 8th floor negotiations and could be significant, sources said Tues. The sentence reads:
Wireless industry sources said the FCC appears likely to impose an interim EAS requirement for wireless carriers, built around the use of text messages, or SMS, for alerts, patterned on the popular Amber Alert program, during its July agenda meeting. Much like the Universal Service Fund item scheduled for the June meeting, the agency’s action is likely to be couched only as a step toward a long range solution, we're told.
Broadcasters, poised to win multicast must-carry rules at next week’s FCC agenda meeting (CD June 15 p13), may rue that victory, said industry sources. To win a unanimous vote on the item, Chmn. Martin, leading what may be his most contentious meeting yet, may agree to subject digital multicasts to public interest obligations, they said. And cable operators have ample grounds to appeal the rules, on grounds they violate the First and Fifth Amendments, said sources.