The FCC is poised to pull the plug on a 2004 rulemaking aimed at allowing cellphone use on commercial flights, sources said Tues. Chmn. Martin is circulating an order among fellow commissioners that would end the proceeding. The rulemaking brought the Commission conflicting advice rather than a firm proposal for how mobile phones could be used on planes. The Commission agreed 5-0 in 2004 to explore lifting its ban on cellphone use on commercial flights (CD Dec 16/04 p4). The Federal Aviation Administration also has a ban, which it’s still studying.
The FCC should resolve program access disputes through binding arbitration, the U.S. Small Business Administration Office of Advocacy said in comments this week. Last month, the Media Bureau opened a proceeding on whether it should keep rules that bar cable operators from withholding programming networks they own from competing pay-TV services. The rules expire in Oct. The Bureau also asked whether the complaint process should be changed (CD Feb 22 p5). Letting the rules expire would hurt small businesses like sports bars and B&Bs, the Administration said, recommending a 3-year extension. Binding arbitration for carriage disputes would help small businesses by addressing the “disproportionate bargaining power among [vertically integrated content] providers, the cumbersome discovery process and questions regarding FCC authority concerning disputes,” the Administration said. The FCC will accept comments on the rulemaking until April 2 and reply comments until April 16.
Landline, wireless and cable telecom service providers urged the Minn. PUC to put on a pending access charge reform rulemaking and a related case for creation of a state universal service fund, until the FCC completes its pending dockets on intercarrier compensation reform and universal service fund reform. The Minn. Telecom Alliance, Minn. Independent Telecom Coalition, Minn. Cable Telecom Assn. and several individual telcos all said the issues in the state access and universal service dockets (Cases P-999/R-06-50 & 51) will be affected by the FCC’s decisions on intercarrier compensation and universal service. They said state action now risks conflict with the eventual FCC orders or unintended revenue shifts affecting the state’s carriers. A few companies, though, urged the PUC to continue. Sprint Nextel said current intrastate access charges are very high and the PUC should look into why intrastate charges are so far above the rates for comparable interstate access services. AT&T said the PUC should look into the high access charges of CLECs. AT&T also said establishment of a state universal service fund is an important feature of intrastate access reform.
A legal challenge by a cable operator is all but certain should the FCC reinstate an ownership cap (CD March 14 p1), industry lawyers said. Chmn. Martin drew fire from NCTA officials for circulating an order to revive a cap that had kept an operator from owning systems reaching more than 30% of U.S. pay-TV homes. NCTA hasn’t decided if it would sue over the ownership limits, but Pres. Kyle McSlarrow said he expects them to be challenged. In 2001, U.S. Appeals Court, D.C., remanded the rule in Time Warner v. FCC.
Comr. McDowell said Thurs. he has made no decision on a Skype petition asking that Carterfone rules apply to wireless. McDowell, addressing the Content Abundance in a Multiple World conference at Catholic U., said today’s timetable gives small and rural carriers time to prepare for the 700 MHz auction. He urged that the FCC “create incentives” for the private sector to cut the cost of effective safety communications.
The FCC dismissed a 1998 petition seeking clarification of a Cable Services Bureau order that year letting operators collect recalibrated franchise fees from customers. The action was unveiled Tues. in an order from the Media Bureau, the Cable Bureau’s successor. The National League of Cities and others sought more information on cable operators’ ability to “pass through” fees to customers after recalculations were required by a 5th U.S. Appeals Court, New Orleans, ruling in Dallas v. FCC. The Media Bureau had taken up the questions in another rulemaking, it said: “The recalculation of franchise fees pursuant to Dallas was a one- time event that occurred nine years ago.”
For nearly 5 hours Tues., House lawmakers pointedly questioned Chmn. Martin and the other 4 commissioners on a broad range of regulatory matters that many complained are taking too long to complete. Martin repeatedly was asked to do more to speed broadband deployment and increase localism in broadcasting. He also was sternly questioned by Telecom Subcommittee Chmn. Markey (D-Mass.) about the Commission’s refusal to investigate phone companies’ role in the President’s warrantless wiretapping program.
Companies seeking CableCARD waivers should explain how it would help consumers if they get a break, said aides to FCC Comrs. Adelstein and McDowell. Cable operators may have to show that unless they get waivers they'll have to charge more or explain why private solutions won’t work. McDowell thinks companies’ agreements, not an FCC rulemaking, are the way to address concerns over a July 2007 deadline for banning integration of set-top box navigation and security, said media adviser Cristina Pauze. Pauze’s counterpart in Adelstein’s office, Rudy Brioche, said cable should focus on the ban’s consumer implications. The officials spoke Tues. at a Cable TV Public Affairs Assn. (CTPAA) conference.
Commissioners are weighing an order to restore cable ownership limits remanded to the FCC in 2001 (CD Jan 12 p1), said agency officials and a regulatory lawyer. An order from Chmn. Martin’s office proposes to reinstate a cap that kept a cable operator from owning systems reaching more than 30% of U.S. pay-TV homes, 2 FCC officials said. A related rulemaking on attribution that’s being reviewed asks how much of a cable system a company can own before the stake counts toward the 30% cap. Drafts of the attribution rulemaking and ownership order are on the 8th floor, we're told.
Each U.S. home can get 2 $40 DTV converter box coupons in a first round of certificates worth $850 million total, under final rules largely reflecting ideas from broadcasters and CE, and summarized Mon. by NTIA. In its Mon. declaration, NTIA reversed a preliminary rulemaking (CD July 25 p3), saying it will let all homes get vouchers and won’t limit the $1.5 billion program to those reliant on broadcast TV. The new rules aim to help viewers with older TVs not linked to cable or satellite buy gear see digital broadcasts after the Feb. 2009 analog cutoff.