Don’t Regulate HD Radio, Microsoft and NAB Tell FCC
Don’t impose new rules on digital or multicast radio broadcasts, the FCC was told by NAB, state broadcaster groups, National Public Radio and the developer of technology for the in-band on-channel streams. Comments responded to a May 31 notice asking if the FCC should impose public-interest obligations on digital radio beyond what it now requires of analog stations (CD June 4 p4). Microsoft, fighting with broadcasters over white spaces devices, agreed with industry that digital radio rules could stifle the new medium’s development. Broadcasters and public-interest groups disagreed about whether stations should post public inspection files on the Web.
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The FCC faces pressure internally and from public- interest groups to subject digital radio stations to stricter public-interest rules than analog-only broadcasters. The lack of tougher rules prompted commissioners Jonathan Adelstein and Michael Copps to dissent partially in the March FCC order approving radio multicasting (CD March 23 p5). Talks among commissioners on whether to fit the order with such requirements delayed its approval by eight months, leading to the rulemaking notice. Now a seven-group coalition that includes a church, public-interest lobbyists and organizations opposing media consolidation wants the FCC to impose more rules.
In exchange for using spectrum, digital radio stations should air “a minimum number of hours per week” of local public affairs programming and election news, said Common Cause, the Campaign Legal Center, New America Foundation, United Church of Christ and others. The Public Interest Coalition didn’t specify a certain number of hours, but said the broadcasters should devote 20 percent of airtime on primary and multicast channels to locally made, independently-produced shows. If a station doesn’t do so, the Media Bureau should refer its license renewal request for review by the full commission, they said, adding that the FCC should let listeners file complaints with the Enforcement Bureau if stations don’t follow the 20 percent rule. “The continuing quid pro quo for the licensees’ right to the exclusive use of publicly owned spectrum must be their commitment under the Communications Act to serve the public interest,” they said.
The coalition wants the FCC to impose fees on digital radio subscription services. By limiting the services’ pervasiveness, fees will “preserve free over-the-air radio,” it said. “Broadcasters will essentially be using additional spectrum to generate revenue,” they said. “In return, to avoid unjust enrichment, it is appropriate for broadcasters to pay a fee.” A filing by 42 state broadcasters’ associations said the FCC lacks power to set fees on digital radio subscription services. Besides, subscription fees are likely to be small the next few years, with Americans unused to paying for “subscription radio services of any kind, and IBOC digital radio services are relatively new,” they said. “There is no risk of windfall profits arising from nascent IBOC subscription services at any time in the future.” The NAB said it doesn’t know of any U.S. broadcaster planning to start a paid service. According to HD radio developer iBiquity, stations using it exceed 1,500. Of those stations, 680 multicast additional streams.
The coalition asked the FCC to make digital broadcasters place public-inspection files online and require they tell listeners where to find the material. The quarterly reports should be submitted to the FCC, which would make them searchable and downloadable. Stations without websites could get waivers from the rule. “The reports will allow both the Commission and the public to evaluate whether licensees are in fact serving the public interest,” said the coalition.
Stations face hurdles in posting public files online, said NAB. A similar Web-reporting requirement sought by some commissioners for TV stations, many of which have more revenue than radio stations, would also be difficult. “The burden would be considerable for television stations, even those that actively operate their own websites, and would be proportionateley greater for radio stations, especially in small markets,” said NAB. Such disclosure rules would be “unduly burdensome” especially “considering the minimal public benefits such a requirement would provide,” said NAB.
It urged the FCC to “tread lightly” with rules, claiming digital radio is so new that mandates could deter investment. “No new regulations are needed at this time and, indeed, could harm the public interest and inhibit further development,” said NAB. “Because public interest obligations already apply to free digital audio channels, there is no need for additional” ones for digital broadcasts. The commission should take a “light regulatory approach,” said NPR. The May FCC order “recognized that, at this early stage of the digital transition, regulatory discretion is the better part of public interest valor.”
NAB said the FCC should regulate digital broadcasters’ data services as it treats products in non-radio applications. “Roughly equalizing regulatory treatment between comparable services, such as data, would clearly encourage broadcasters to develop new, innovative non-audio services,” it said. Microsoft advocated a hands-off approach. “Premature regulation will quash the innovation and growth that is just beginning,” it said. It sells data services using FM stations and is “transitioning” to digital radio, said Microsoft. “Policy makers should not precipitously impose regulations on these new services that would stifle their development at this very early stage.”