Few Programming Limits Expected from FCC in Adelphia Sale
The FCC probably won’t impose many more programming restrictions on the sale of Adelphia than Chmn. Martin has proposed, said industry sources. Another good augury for the sale is a bankruptcy court approval this week of the company’s reorganization. EchoStar, RCN and America Channel lobbied commissioners in the past week to make buyers Comcast and Time Warner arbitrate a wide array of programming disputes, ex parte filings show. Chmn. Martin’s order circulating on the 8th floor puts such stipulations only on local sports channels (CD June 28 p2).
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Comcast told Martin, Comr. McDowell and Media Bureau staffers the $17 billion deal won’t curb regional sports channel access, according to other filings. In addition to when they and the acquiring firms fail to agree on carriage of local sports networks, pay TV rivals want arbitration when: (1) All parties can’t agree on carriage deals for the 2 firms’ channels and (2) independent programmers can’t get Comcast or Time Warner carriage. Such mandates are long shots, industry sources told us.
“I don’t think there’s a very high chance because you just added a 5th commissioner now and they just started a revamp of media ownership rules,” said Miller Tabak’s David Joyce. The analyst, who is recommending Comcast stock, added: “It’s too early in relation for this deal for anything new to be imposed.” An industry lawyer agreed.
America Channel Pres. Doron Gorshein said he’s not giving up, but wouldn’t bet either way on wide-ranging program terms. “All I can do is get the job done; I cannot speculate as to whether or not we will get conditions. I am hopeful we will,” he told us: “What we have focused on is that there is a market dysfunction and hoping the FCC will agree with us and take steps to help remedy the situation.” RCN is “pleased to hear reports that the Commission is considering an order that will impose program access conditions,” it told us. The company added: “Competitors need access to ‘must have’ programming for effective competition to emerge.”
Meanwhile, the Adelphia sale got a boost as reorganization plans got approval from U.S. Bankruptcy Court, N.Y., said Joyce. “The court confirmed a plan of reorganization for Adelphia’s two joint ventures with Comcast” in a Wed. ruling, the bankrupt company said. The day before, Adelphia’s bid to sell itself before resolving creditor disputes was approved by Judge Robert Gerber. “With two major court hurdles cleared in 48 hours, we believe we are on track to close the sale on July 31,” Adelphia Chmn. Bill Schleyer said in a written statement.