Courts likely won’t uphold recent FCC indecency rulings, contested by the 4 major networks and affiliates, veteran media attorneys and industry observers said. NBC, CBS, Fox, ABC and affiliates late last week filed actions in multiple federal courts, arguing the Commission violated the First Amendment in labeling certain broadcasts of profanity as “obscene” in a March 15 ruling (CD March 17 p1) in which it also issued a wide variety of fines.
ATLANTA -- The FCC should give cable a la carte a fresh look because dueling Commission reports that came to different conclusions have created confusion (CD Feb 10 p2), said FCC Comr. Adelstein. The latest report, supported by FCC Chmn. Martin, said selling channels individually can help cut customer bills - repudiating a previous Media Bureau study that said it wasn’t a good idea. The Congressional Research Service recently chimed in on the controversy, backing neither report. Citing CRS, Adelstein told a luncheon here at NCTA’s National Show that there’s “understandable confusion about which was the right report.” The recent FCC report, which suggested cable operators should offer more bundles of programming, has been criticized by NCTA, Disney and Viacom.
The House Telecom Subcommittee approved the House video franchise bill 27-4 after a nearly 6-hour markup Wed. The committee unanimously passed a manager’s amendment for Titles I and II of the Communications Act. Offered by Chmn. Upton (R-Mich.), the Title I amendment clarifies rules for national franchises, while the Title II measure strengthens net neutrality provisions. Debate was lively, with Telecom Subcommittee Ranking Member Markey (D-Mass.) and Commerce Ranking Member Dingell (D-Mich.) pushing for net neutrality, buildout and other provisions rejected in private negotiations with the committee leadership.
The long-awaited House telecom bill got a warm reception from Bell companies, but net neutrality proponents Tues. called it a step backward for the Internet (see separate story in this issue). The bill puts net neutrality regulation in the FCC’s hands, but it specifically orders no rulemaking -- a provision critics say would limit the FCC’s enforcement power. Cable gave the bill conditional approval, praising progress from earlier drafts. The bill doesn’t include a buildout provision -- considered a key stumbling block in building bipartisan support on the committee.
Robert McDowell’s nomination for FCC commissioner is on hold, Hill and industry sources said Mon. The hold apparently was placed Fri., sources said, with no consensus as to why, according to numerous interviews. The hold process is public; Senators can place anonymous holds or identify themselves as placing holds. But even if a senator takes credit for a hold, it’s unusual to reveal motive, since most holds come into play for backroom deal-making, Hill sources said.
Parties aren’t asking for a “heavy-handed approach” to network neutrality from Congress or the FCC to protect the integrity of the traffic on the pipes, VON Coalition Exec. Dir. Jim Kohlenberger said at an FCBA program Thurs. But with job growth and productivity increasingly hinging on an expansive broadband market, it makes sense that “we go out and fix the roof before the storm comes.”
FCC Chmn. Martin used his first news briefing to push for deregulation of telco video to compete with cable, plus looser media ownership limits. Fiber to the home “should also be free of many regulations… and I think the Commission should act on that,” Martin said: “I am hopeful that we will be able to provide some regulatory relief.” Fiber deployments such as Verizon’s estimated $20 billion FiOS project also help boost broadband deployment, Martin said, calling broadband “the top priority for this Commission.”
SAN FRANCISCO -- AT&T’s proposed BellSouth takeover adds to hurdles Bells face in seeking video franchising reform, a cable industry executive said at a Practising Law Institute seminar here Mon. and Tues. That AT&T can float a $67 billion purchase but says it can’t afford universal buildout of its Project Lightspeed network “will be suspect to people,” said Jeffery Sinsheimer, Cal. Cable & Telecom Assn. vp-law & public policy. The cable law program was dominated by the views of attorneys for cable companies and cities; AT&T personnel were on hand but generally said little about the criticism.
Congress won’t pass a telecom bill this year, ex-Sen. Larry Pressler (R-S.D.) Said Wed. at an event commemorating the Telecom Act’s 10th anniversary. “Congress holds hearings, hearings, hearings… There’s a lot of tough talk but nothing passes,” said Pressler, one of the ‘96 Act’s framers. The lag occurs because voters have scant interest in telecom policy, so bills focus on business, depriving bills of “electoral” benefit and dotting them with political dangers, he said.
FCC Chmn Martin said a notice of proposed rulemaking that began circulating last week “tentatively concludes” that the Commission should require all telecom carriers to certify on a specific date that they have set up operating procedures to comply with proceedings to safeguard customer proprietary network information (CPNI). He made his comments at a House Commerce Committee hearing Wed. on cellphone records. He also outlined suggestions to Congress for changing the law to help combat the theft of consumer information.