The FCC voted 3-2 to bar local franchise authorities from impeding competitive entry into cable markets by unreasonably deterring Verizon, AT&T and others from getting franchises. The vote at the FCC meeting Wed. was opposed strongly by Comrs. Copps and Adelstein. They said the order could lead to lawsuits, because the FCC lacks authority to limit local govt. actions. The move was quickly assailed by the cable industry and praised by the Bells.
FCC indecency enforcement seems vague, only partly weighs parental authority in deciding what’s best for kids and gives short shrift to a TV rating system, U.S. Appeals Court, N.Y., judges said during oral arguments in Fox v. FCC. An agency decision to cut CBS slack when The Early Show aired a game-show contestant’s utterance of “shit” on grounds that it was news indicates the news exception may be too broad, 2nd U.S. Appeals Court Judge Rosemary Pooler said. Pooler also focused on judgments of indecency based on “artistic merit.” Judges’ questioning Wed. of FCC lawyer Eric Miller and Fox’s Carter Philips was more pointed than at a preliminary hearing (CD Aug 30 p3).
The N.J. Board of Public Utilities (BPU) granted Verizon a state video franchise covering about 70% of residences there. The franchise will let Verizon offer its FiOS TV service to about 2.1 million homes in 316 cities and towns. Within weeks, Verizon will roll out state-franchised services in 100 communities, beginning with Bergen, Camden, Middlesex, Monmouth, Morris, Passaic and Somerset Counties and later in Essex, Union and Mercer Counties. Verizon will publish in early Jan. details about where and when its FiOS services will be available first, it said. It plans to offer 200 channels for $42.99 monthly. Verizon, which serves about 200 cities and towns in N.J. under individually negotiated municipal franchises, called the state franchise “a huge victory for consumers.” The N.J. Cable Telecom Assn. and community and consumer groups said the BPU acted prematurely in granting the franchise before completing a statewide franchise rulemaking. With the franchise granted, they said, the BPU should monitor Verizon deployment to ensure residents in its video markets have access to its services. Verizon last month became the first N.J. video provider to seek a statewide franchise under a video franchise law passed in Aug.
Industry Canada won’t have the BPL rules this year as projected, a regulatory source said. A BPL proceeding begun in July 2005 is languishing in part because “there is not a lot of pressure” from the industry, the official said. But a recent FCC certification of Vancouver-based Corinex’s access BPL gear has rekindled regulatory interest, bringing BPL back onto the front burner, the official said: “Our Canadian electricity companies are not putting any pressure. They are not approaching us at all.” Regulations proposed by Industry Canada closely resembled the FCC’s.
Hill oversight won’t delay FCC Gen. Counsel Sam Feder’s review of whether Comr. McDowell can vote on the AT&T- BellSouth merger, FCC Chmn. Martin told the news media Wed. after speaking at a Phoenix Center conference. Feder will “proceed with the normal course” of review while responding to letters from Hill Democrats (CD Dec 6 p1), Martin said in response to a question. He wouldn’t speculate on when Feder would finish the review. Asked whether the agency would be ready to vote by the Dec. 20 open meeting, Martin said: “I don’t know.”
The FCC should keep rules that prohibit cable operators from striking exclusive deals to distribute their programming, several broadband and pay TV providers said in response to the Commission’s pay TV competition inquiry. Comments were due late Wed. The FCC was asked to renew so- called program access rules to ensure that new video entrants and smaller companies can carry channels owned by cable operators. “As the Commission begins to consider extending its program access rules, it is clear that the prohibition against exclusive programming contracts remains necessary,” Verizon said: “New entrants face the additional hurdle of obtaining popular video programming on fair and reasonable terms.” Other filers made similar comments, including America Channel and Broadband Service Providers, whose members include RCN and WOW. “All competing distributors should have the same access to content,” the group said: “While the program access provisions have been effective, they need to be expanded.” The agency next year will issue a notice of proposed rulemaking asking whether to keep the rules, which expire in 2007, FCC officials have said. Some cable operators want the FCC to lift the restrictions, said a cable lawyer. But that may not happen because of commissioners’ concern about competition, said another industry lawyer. NCTA believes there’s plenty of competition
Natural Resources Canada (NRC) is “investigating” standby power limits for digital converter boxes and other consumer electronic products, said an NRC official. NRC is eyeing curbs on compact audio devices’, TVs’ and DVD players’ and recorders’ power use, Nathalie Peloquin, senior standards engineer, told us. Standards could take effect in 2008, she said. NRC, which implements Canada’s Energy Efficiency Act & Regulations, is participating in a U.S. EPA proceeding to develop energy standards for converter boxes.
Bells and cable were lobbying FCC 8th floor officials on fiber and cable franchising rules before a coming vote on an order addressing municipal mandates that some telecom companies call onerous. FCC Chmn. Martin has said he wants a vote this year (CD Oct 13 p5). Cable, Bell and city officials have met at least 8 times this month with commissioners or aides on franchising, including twice with Martin, ex parte filings show.
Democrats on the House Commerce Committee Wed. joined a chorus of critics urging NTIA to drop its rulemaking proposal restricting eligibility for DTV converter box coupons to households relying exclusively on over-the-air signals. The demand, in a letter not seeking legislative changes in the coupon program, strongly urged NTIA to make sure the program periodically informs Congress and the public on how many coupons are being requested and redeemed to prepare for any changes that may be needed later.
A Democratic-controlled House or Senate is likely to take an active oversight role on NTIA’s handling of the $1.5 billion DTV converter box coupon program, Hill sources told us. And consumer groups vow that if they're emboldened by a big Democratic victory they would push for more subsidy money.