Twenty-four senior cable network executives representing more than 70 channels fanned out over Capitol Hill Wed., lobbying key lawmakers against imposing digital must-carry requirements on cable operators. Meeting with 40 members of Congress, including most members of House and Senate Commerce Committees, cable programmers sought to counter increased lobbying and regulatory push by broadcasters for mandatory dual carriage of analog and digital broadcast signals during current DTV transition. “We know our competitors in the marketplace have been lobbying very actively on the Hill,” said A&E TV Networks Pres. Nick Davatzes, who chairs NCTA’s satellite networks committee. “We haven’t been spending enough time on the Hill.”
Making his first bureau chief appointment, FCC Chmn. Powell named Washington telecom attorney Kenneth Ferree as head of Cable Bureau, replacing departing chief Deborah Lathen (CD May 10 p8). Powell announced Thurs. that Ferree, partner in Goldberg, Godles, Wiener & Wright and adjunct law prof. at Georgetown U. Law Center, would take over post May 21, right after Lathen left. Move comes as industry observers speculate that Commission may combine cable, broadcasting and satellite TV regulation in one overall TV bureau, instead of current split of responsibilities among 3 separate bureaus.
Comr. Ness, senior member of FCC, announced Thurs. she would be leaving agency by June 1 after 7 years. Ness, Democrat who was sworn in May 23, 1994, sought 2nd term after her 5-year term expired, but was stymied by Senate Commerce Committee Chmn. McCain’s refusal to confirm her. McCain said he didn’t approve of commissioners serving more than one term. Ness said she was making announcement now because “an orderly transition is best accomplished by announcing when my time with the Commission will end.” President Bush has announced names of 3 individuals he plans to nominate for Commission seats (CD April 9 p1) although there was some uncertainty about when new members would be confirmed. Their names haven’t been formally sent to Hill. Ness didn’t announce her plans.
Making fresh push for digital must-carry requirements during DTV transition, NAB, MSTV and ALTV jointly challenged FCC’s Jan. DTV order tentatively rejecting dual-carriage rules. In joint petition for reconsideration and clarification filed late Wed., broadcast groups called on Commission to impose dual-carriage requirements to spur DTV transition. They also urged agency to force cable operators to carry multiple streams of DTV video programming, not just single stream, and pressed FCC to provide greater safeguards against material degradation of DTV signals and require cable operators to use broadcasters’ program guide information in their set-top boxes and electronic programming guides.
FCC defended efforts to seek specific information from cable operators about their current system capacity, plans for future capacity and retransmission consent deals covering digital programming while it conducts more general DTV survey of broadcasters. In response to recent letter from NCTA, Cable Bureau Chief Deborah Lathen said Commission sent detailed DTV survey only to MSOs because “we believe broadcasters that advocate dual carriage have an incentive to provide us with information in an effort to justify such a requirement.” Noting that agency tentatively decided against imposing dual-carriage obligations in Jan., Lathen said that “the onus is on those who favor mandatory dual carriage to provide the necessary information to overcome this existing presumption.” Moreover, she wrote, questions posed to cable operators in survey “are more objective and suitable for tabulation than the questions we might pose to individual broadcast stations.” She said questions in DTV must-carry further notice of proposed rulemaking that seek specific information about broadcasters’ DTV programming and formats should “help to focus commenters on the Commission’s need for specificity in the record.”
FCC extended deadline for filing public comments on its further notice of proposed rulemaking on DTV cable must-carry. Responding to request for more time, Cable Bureau pushed deadline for comments back to June 11, replies to July 21. Comments had been due May 10.
FCC Comr. Furchtgott-Roth expressed optimism Tues. that Commission would get its reciprocal compensation item out “shortly,” although he said he was disappointed with results. “This item has just a dreadful history,” he told reporters at monthly breakfast, referring to order that now is on circulation. FCC order vacated and remanded by U.S. Court of Appeals, D.C., reflected “a mistrust in state government” and belief “that the federal government could do things better,” Furchtgott-Roth said. Citing “unsubstantiated” rationale for federal jurisdiction over certain kinds of traffic, he said that 2 years later item is “frankly much the same result from the Commission.”
Several large wireless interests marshaled new research from economists to bolster arguments to FCC for relaxing spectrum cap, proposal that raised concern of some small carriers and largest wireless reseller WorldCom. In proposed rulemaking earlier this year (CD Jan 23 p1), FCC reopened examination of whether spectrum cap and cellular cross-interest rule for commercial mobile radio service (CMRS) providers still were needed. Spectrum aggregation limits are 45 MHz in most markets, except rural areas, where cap is 55 MHz. In comments to date, CTIA, Sprint PCS and Verizon Wireless presented economic data to show how wireless competition had grown, although Sprint’s numbers indicated largest markets “remain concentrated.” As for cross-ownership rules, Verizon wrote: “Duopoly market structure -- the entire premise for this rule -- of course is gone.”
Interagency task force led by Justice Dept. April 15 will publish final revised standards on federal appraisal of public lands, action that telecom and energy interests said could increase cost of using rights-of-way (ROW). They said such action also would violate restrictions last year set in 2001 Interior and Related Agencies Appropriations bill. Edison Electric Institute (EEI) spokesman said task force, known as Interagency Land Acquisition Conference, was attempting to slip under Congressional radar by publishing revised govt. land appraisal desk guide, rather than formal regulations, enabling federal appraisers to assess inflated costs on companies seeking to deploy fiber and other utility infrastructure on public land.
FCC would be required to conduct new e-rate rulemaking, altering program in ways that one supporter suspected could destroy it, under proposals tucked into President Bush’s budget proposal (CD April 10 p1). General provision in proposed Commerce Dept. budget would have Congress direct Commission to finish rulemaking by Sept. 30, 2002. However, e-rate foe thought program got boost when $2.25 billion in e-rate funds and similar amount for high-cost universal service money for first time were included as $4.5-billion line item (rising to $5.6 billion in FYs 2001 and 2002) in FCC budget.