Bush Administration’s fiscal year 2002 budget proposal would increase funds for FCC, but White House’s long term strategy is to level off agency’s spending over the next 4 years. According to govt. budget details released Mon., Bush would increase FCC’s FY 2002 budget to $248.5 million from current $230 million. Total proposed outlays, or “amount the [FCC] actually spends in a given fiscal year,” would increase to $320 million from $301 million. Spending in FY 2003 and 2004 would drop to $302 million, then increase by $1 million in FY 2005 and FY 2006, respectively, under plan.
FCC Chmn. Powell expressed strong doubts about future importance of traditional over-the-air TV in nation where more than 80% of households rely on cable and satellite for their TV viewing. In news conference on TV issues at Commission hq Thurs., Powell said he didn’t see agency intervening much further in such marketplace issues as disputes over DTV standards and network affiliate practices because he wasn’t sure how most consumers were affected. With combined cable and satellite penetration seemingly on its way toward 90% of U.S. TV homes, he argued that such broadcasting industry battles were relevant to increasingly fewer viewers.
FCC review of broadcast station ownership caps won’t focus solely on market concentration rule, but also will take programming diversity into consideration, Chmn. Powell said March 29. He told House Telecom Subcommittee that Commission in May also would review broadcast-newspaper cross-ownership restrictions. NAB spokesman said it was “delighted that the FCC is going to expeditiously review” cross-ownership issue.
FCC set deadlines Wed. for comment on its proposed rulemaking on DTV must-carry issue, following publication of notice in Federal Register. Commission tentatively concluded in Jan. against imposing dual-carriage obligations on cable operators during current digital broadcasting transition but left issue open for final determination. Comments are due May 10, replies June 25.
Cable operators, programming networks, broadcasters, DBS providers, consumer electronics interests, Bell companies, ISPs, sports leagues, software developers, electronic program guide creators, personal video recording firms and consumer groups all battled over possible interactive TV (ITV) regulations at FCC. In comments filed last week in response to Commission’s ITV inquiry, 28 entities debated whether federal govt. should regulate nascent interactive market in wake of AOL’s takeover of Time Warner (TW) earlier this year. They also feuded over how govt. should define interactive services if it chooses to regulate them.
FCC opened rulemaking on transitioning Bcst. Auxiliary Service (BAS) to digital. Commission also proposed conforming some rules of BAS, which is used for electronic newsgathering and studio-transmitter links, with those of Cable TV Relay Service (CARS) and fixed microwave service. FCC said new rules would allow end-to-end digital broadcasting in any BAS band and would simplify rules and increase spectrum efficiency. Commission also proposed to allow movie and TV producers to use wireless assist video devices on unused TV channels as long as incumbent users were protected from interference.
FCC rulemaking on Multichannel Video Distribution & Data Services (MVDDS)continues to stir debate in comments to Commission (CD March 14 p3). Startup Skybridge said it believed MVDDS systems such as one proposed by Northpoint were “grossly discriminatory against NGSO FSS systems that it plans to use. It said rulemaking “accepts practically every unsupported and contradictory assertion proffered” by MVDDS supporters while “ignoring the clearly documented and critical needs” of NGSO-FSS operators. EchoStar said conclusion by FCC on spectrum sharing was wrong and agency should examine its own history to make determination that “ubiquitous satellite service and ubiquitous terrestrial” cannot share same frequencies. Northpoint motives are opportunistic and form of unjust enrichment, EchoStar said: “There is no valid reason other than enrichment hopes” why Northpoint needs to operate service in DBS band (12.2-12.7 GHz). EchoStar said Northpoint could best service public interest by purchasing LMDS or wireless cable license, either at auction or in secondary market. DirecTV said rulemaking jeopardizes DBS in way that’s unfathomable. Idea that Northpoint will operate in DBS downlink band as good citizen without causing interference is untenable, it said. DirecTV said Northpoint’s proposed MVDDS was nothing more than fixed wireless service offering video and broadband capabilities and would be better off in another frequency band such as 2.5 GHz (MMDS), 24 GHz (DEMS), 28 GHz (LMDS) or 39 GHz. Meanwhile, Minority Media & Telecom Council (MMTC) backed Northpoint. MMTC said Northpoint’s service would aid minorities and rural residents while “increasing the diversity of voices available to all citizens.” Satellite Bcstg. & Communications Assn. (SBCA) and Boeing said they will challenge rulemaking launched during term of Chmn. William Kennard with petitions for reconsideration. Both plan to file next week.
FCC’s limits on cable horizontal and vertical ownership don’t meet the requirement of burdening speech as little as necessary, unanimous U.S. Appeals Court, D.C., said in reversing and remanding limits to Commission. FCC rules say no MSO can own cable systems with more than 30% of national cable subscribers, and programming in which MSO has attributable interest can fill no more than 40% of channels on cable system. Appeals court also said FCC should consider growth of DBS in setting ownership limits.
U.S. Copyright Office (CO) expects to open inquiry into copyright compulsory licensing for streaming media within next week, said CO attorney Bill Roberts. Inquiry is first step in potentially setting rules that will “determine a lot of how music is delivered in the future over the Internet,” Roberts told Precursor Group conference in Washington Fri. CO expects to allow about 45 days for comments, 30 days for replies, then decide whether to proceed to rulemaking or issue final rule, he said.
While differing on some details, wireless carriers and equipment makers in comments last week urged FCC to make additional spectrum available for 3rd generation and advanced services. Among most pointed recommendations were those of equipment vendors such as Ericsson, Motorola and Qualcomm, which pointed FCC toward spectrum now occupied by federal govt. users in 1.7 GHz band as ideal for 3G. Motorola urged Commission to alter auction process so that part of proceeds could be used to help pay for relocating incumbents. In move that may require legislative change, Motorola said that would avoid pitfall of current system “where the true costs of relocating incumbents only becomes known to successful bidders after the auction.” Several commenters stressed need for FCC to make more spectrum available on faster timeline than that laid out under several agency proposals.