Senate Democrats Press Martin on Media Ownership

Apart from pointed questions on media ownership and net reverse auctions, senators gave Martin an easy ride. John Kneuer, nominee for NTIA dir., hardly was questioned. Chmn. Stevens (R-Alaska) opened the hearing at 10 a.m. but turned the hearing over to Sen. Burns (R-Mont.) after 30 min. so he could manage on the Senate floor an amendment to the port security bill on emergency alert services (see related story).

“I think it’s a horrible mistake to vest too much power in single companies,” said Sen. Dorgan (D-N.D.), referring to ownership consolidation in the media industry. He urged Martin to work on a “different” rule than the previous effort that wound up in court being declared unconstitutional. Boxer said she agreed with Dorgan, expressing fear that loosening of media ownership rules would lead to enormous growth in the industry that would harm consumers.

Boxer also said she was concerned about the President’s National Security Agency program involving phone companies’ transferring consumer records to the govt. Martin said courts haven’t given a “consistent” answer on the program, so it’s not the proper time for the agency to take action. The FCC will follow consistent guidance from the courts, he said. Boxer said the decisions indicate the FCC could take action: “I'm disappointed in your answer.”

She also was upset about an internal report “someone” mailed to her showing that locally owned TV stations show more local news than those owned by the big networks. “I think there’s been work that’s been done and it’s been stifled,” Boxer said: “I don’t understand who deep-sixed this thing, but this kind of work has never seen the light of day.” Boxer said to Martin: “Will you promise me that you will read this report?”

Martin promised to look into it, saying he wasn’t aware of the research. On a localism proceeding that the commission is doing, Martin said a summary hearing was set to be completed before this year, but it was never done: “We need to do it. I've asked staff to go back and do a summary.”

Stevens told Martin he had concerns about the reverse auction procedures for rural carriers that get Universal Service Fund money. The auction process could cause incumbent carriers operating in remote communities to be “wiped off the map quick” in favor of nationwide wireless companies that don’t have a stake in local community needs, Stevens said: “You need to appreciate how important it is that they [local operators] don’t get left behind.” He added that some have been in business for decades.

Martin said the system would yield greater financial returns while attracting new technologies that could be more efficient: “I hope to develop a system that doesn’t freeze in place one set of technologies. I want to be more efficient.” But Stevens said under reverse auctions, current entrants would probably “always lose” to major carriers.

Stevens also asked Martin whether the FCC can adequately remedy antidiscrimination complaints. “Net neutrality is the subject holding up the telecom bill and may well lead to its defeat,” Stevens said: “Do you have a system in place for monitoring and identifying such abuses?” Martin said the FCC has authority under Title I to adopt rules to deal with such complaints, and it continues to monitor for violations: “We've been very vigilant about it.”

Martin told Sen. Pryor (D-Ariz.) that the cable industry’s indecency campaign highlighting the use of parental controls is inadequate. “I don’t think a campaign about parental controls is enough,” Martin said, saying many families don’t subscribe to digital cable, which is needed to use the tools. The ratings system also is not “effective,” he said, rendered the tools less useful. But he didn’t say what he'd like to see in its place.