FCC reaffirmed its Aug. 1999 decisions on TV ownership and attribution rules in decisions late Fri. Among rules reaffirmed were local TV ownership limits, national TV ownership, mass media attribution.
U.S. Supreme Court agreed Mon. to hear appeal of decision by 8th U.S. Appeals Court, St. Louis, that vacated FCC’s Total Element Long-Run Incremental Cost (TELRIC) pricing standard for competitive interconnection (CD July 19 p1). Court said it would hear case (Verizon Communications v. FCC) in 2001-2002 session that begins in Oct., meaning decision probably won’t be handed down until about year from now. Appeals were filed by Verizon, WorldCom, FCC, AT&T, General Communications. FCC Gen. Counsel Christopher Wright said agency was pleased court had granted its petition in this case as well as another involving rates that utilities can charge for pole attachments (see below). In both cases, “Congress decided that utilities owning bottleneck facilities must lease them to competitors at reasonable rates,” Wright said.
In split decision that left broadcast and cable officials scrambling for clarification, FCC voted 3-2 late Fri. against requiring cable operators and DBS providers to carry both analog and digital signals of TV stations right now. Commission hadn’t actually announced decision at our deadline Mon., although action was said to be imminent. Sources said Commission adopted further notice of proposed rulemaking (FNPRM) that would set high bar for broadcasters to prove that they were entitled to must-carry rights for 2 signals during digital transition. Notice apparently seeks comment on whether dual carriage would violate cable’s constitutional rights to free speech, as cable has insisted. But details remained fuzzy at our deadline.
FCC strengthened its line sharing rules in an order released Mon. that acts on petitions for clarification or reconsideration of rules agency adopted last year. Among changes adopted in new order: (1) Line sharing applies to entire loop, even where portion of loop is on fiber facilities. (2) ILECs must provide line splitting so competing carrier can provide voice and data over same line either by itself or in partnership with data carrier.
In much-anticipated announcement, President Bush tapped FCC Comr. Powell as chairman Mon., just days after departure Fri. of FCC Chmn. William Kennard. Powell, who has been on FCC since Nov. 1997, had been widely viewed as front-runner for post, although official word didn’t come until White House spokesman Ari Fleischer announced appointment at news briefing Mon. Separately, executive memorandum issued by Bush Chief of Staff Andrew Card began circulating more widely at FCC Mon. Though it wasn’t clear how much authority Executive Branch has over decisions of independent agencies like FCC, memo is intended to suspend regulations that agencies have approved recently but which haven’t yet been published in Federal Register.
LAS VEGAS -- Mandatory digital tuners in TV sets was subject of sharp exchanges at ALTV panel here Mon., with CEA Pres. Gary Shapiro arguing that consumers shouldn’t be required to buy unwanted tuners while Cox TV Pres. Andrew Fisher said mandatory tuners were “a must… if we're going to get this [DTV] going.” Paxson TV CEO Lowell Paxson said “I'm ready to go to the Supreme Court” on tuner issue, saying All-Channel Receiver Act passed by Congress in 1964 requiring UHF tuners “is the law.” Paxson also got into exchange with panelist Susan Fox, deputy chief of FCC Mass Media Bureau, on what he said was agency’s slowness in acting on DTV applications by TV stations.
FCC voted Fri. to approve SBC’s Sec. 271 application to offer long distance service to customers in Kan. and Okla., agency said late Mon. Commission said action wouldn’t become effective for 43 days to permit pricing amendments, filed recently by SBC, to become effective. Ex-FCC Chmn. William Kennard cast his vote before leaving Fri. New Chmn. Powell dissented in part because he disagreed with 43-day delay.
Broadcasters on TV Ch. 52-69 should have to give back their analog channels Dec. 31, 2006, regardless of whether 85% of U.S. households have access to DTV, outgoing FCC Chmn. William Kennard said in letter to Congress, and broadcasters on other channels should begin paying escalating spectrum fee to continue analog broadcasts. Changes were among several that Kennard proposed to Congress as way to speed DTV transition.
BURBANK, Cal. -- Saying current economic slowdown “is just a speed bump” and new technology offers his company exceptional opportunities, Disney Pres.-COO Robert Iger told us “we have a feeling of exhilaration at the Disney Co. right now… as a company, we're extremely optimistic.” He said, “I think the economy is still sound [but] a feeling of pessimism” has set in among industry executives and national advertisers that’s causing concern. “It’s still too early to tell” about overall TV economic performance in 2002, Iger said.
Paxson Communications urged broadcasters Fri. to oppose Verizon Communications request that FCC postpone upcoming 700 MHz auction at least 2 months, but ideally until Sept. 6. Auction, which had been set for last Sept. 6, now is scheduled for March 6, with short-form applications due Feb. 2. FCC Wireless Bureau is seeking comments on request until Jan. 24, after Verizon Wireless wrote to Bureau Chief Thomas Sugrue, arguing that if auction were held as scheduled, participants wouldn’t have enough time to assess their interest in acquiring additional spectrum, in part because C-block PCS auction that started Dec. 12 was continuing (CD Jan 19 p9). Paxson urged broadcasters, particularly incumbents in Ch. 60-69 spectrum, to oppose request for delay, noting that bidding already had been delayed 3 times. “We cannot support a 4th delay of the 700 MHz auction,” Chmn. Lowell Paxson said. “This most recent action by Verizon will put the continuation of the information revolution in the U.S. in grave jeopardy.”