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FCC Talks May Focus on Dual-Carriage Rule

FCC commissioner negotiations on a DTV rulemaking slated for a Wed. vote are likely to center around how strongly the item (CD April 12 p1) endorses a proposal by Chmn. Martin that cable operators carry analog and digital signals of certain TV stations, said FCC and industry officials. They said Chmn. Martin likely will get at least 2 additional votes for the 2nd further notice of proposed rulemaking (FNPRM), but it’s uncertain whether everyone will support it. Getting the nod from all commissioners, including Democratic Comrs. Adelstein and Copps, may depend on “watering down” tentative conclusions in a draft FNPRM Martin’s office circulated on the 8th floor, said a cable lawyer. Several other media- related items were also set for an April 25 vote, including a DTV labeling order.

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There’s concern among some on the 8th floor that Martin’s draft FNPRM favors broadcasters over cable, said an FCC official. The rulemaking seeks public comment on whether cable operators should have to carry analog and digital signals of TV stations that have must-carry status. A more palatable rulemaking would remove the tentative conclusion that supports a dual-carriage rule and instead seek public input on whether such a rule is warranted in the first place, we're told. “The tentative conclusions are definitely going to be key,” the FCC source said: “It’s kind of a new question, which is all the more reason for us to do something that is neutral, and that way we can get the broadcast comments possible. I think that’s part of the concern that folks have expressed.”

“It seems to us all the options should be equally presented,” said a 2nd cable attorney: “That’s the point we have been making.” Another of the FNPRM’s tentative conclusions that may be the subject of 8th-floor debate is a requirement cable operators carry all programming bits, said the FCC official. The draft rulemaking appears to place the burden on cable operators to show they're not “materially degrading the signals” from broadcasters, said the source. The program bit rule may refer to HDTV signals, which broadcasters want cable operators to carry in full, said a communications attorney: “That’s what the broadcasters have put their foot down on publicly, that [there be] no downconversion of high definition signals.” Broadcasters have supported the dual-carriage FNPRM.

There’s no need for signal degradation rules, said a cable official. “MSOs don’t materially degrade signals currently and don’t plan to in the future,” the official said: “There is no need for the FCC to change its carriage requirements concerning program bits.” NCTA contends DTV carriage rules are unnecessary because the industry will offer analog customers broadcast signals after the DTV transition. “We will continue to deliver broadcast signals to all customers after the February 2009 transition,” said an NCTA spokesman: “Cable operators already carry hundreds of local broadcast high definition signals as a result of marketplace agreements.”

Martin likely can get a 5-0 FNPRM vote by making some changes other commissioner want, said the first cable lawyer. Commissioners won’t vote for multicast must-carry rules -- scuttled last year partly by Comr. McDowell’s constitutional concerns -- but dual-carriage is a separate issue regulators seem more inclined to tackle, the lawyer said: “Because of concern about what may happen in the DTV transition… other commissioners are a little more open to exploring more possibilities,” said the attorney: “I don’t think the others are fully on board with the vision the chairman has, but I think a majority will be willing to definitely put something out there and get comments on it.”

Commissioners will vote next week on another DTV order that would require retailers to label all TV sets that don’t have digital tuners. Also slated for votes: (1) A 3rd periodic review of DTV rules on “proposing procedures and rule changes necessary to complete the transition to digital TV,” said the agenda, unveiled late Wed. (2) An order dealing with a request from public TV stations on a low-power TV auction. (3) Changing the FM table of allotments for Rincon, P.R.

Not slated for a quick action: Another must-carry NPRM championed by Martin that proposes to let small companies and minorities lease digital spectrum from broadcasters and force cable operators to carry the programming. Martin didn’t place the NPRM on the agenda because he “doesn’t have the votes” yet, said an FCC official.