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Martin Eyes Votes Soon on New Ownership, Other Media Rules

FCC Chairman Martin is taking steps to get votes soon on a variety of media issues, the most controversial of which is likely to be a comprehensive rewrite of ownership rules that’s been long in the making. Martin’s office has told other commissioners he wants them to vote by Dec. 18 on an ownership rewrite order, said two FCC officials. But all commissioners haven’t agreed on the schedule. Late last week, the chairman started circulating on the eighth floor an annual report on video competition covering the year through June 30, 2006, said three officials. Commissioners approved the previous year’s report on Feb. 10, 2006, so Martin seems to be getting a jump start on a vote for the 2006 study.

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Preparations are underway for the 2007 report (CD Oct 11 p2). In early September, the chairman circulated a notice of inquiry for the 14th Annual Video Competition Report to Congress, said four FCC officials. The notice is the first step to compiling the report, which lists the number of people subscribing to cable, satellite and telco TV. Martin confirmed he “recently circulated” the 2006 report, in a letter to Republican Reps. Joe Barton of Texas, ranking member on the House Commerce Committee, and Telecommunications Subcommittee Ranking Member Fred Upton from Michigan. Martin told them that he revised the 2007 notice of inquiry to ask video providers how many homes getting only over-the-air TV have tuners capable of getting digital broadcasts. On Wednesday, Martin told the Telecommunications Subcommittee that he began circulating an order to require broadcasters, cable operators and others to educate consumers about DTV. (See separate report in this issue).

The chairman seems to want votes soon on several other media orders, said FCC officials. They said Martin wants quick action on an order barring video providers from striking exclusive deals to sell TV to apartments and other housing developments. Martin said Friday that the order, on circulation, also bars existing exclusives (CD Oct 15 p6). If commissioners vote on any items at the FCC’s Oct. 31 meeting, Martin is likely to ask them to approve the apartment video order, said an FCC source. A vote may not occur because Martin wants to combine the meeting with a hearing on how well broadcasters cover local news and other events, said FCC sources.

Eighth-floor talks are continuing on an order to give cable operators franchise deregulation when their current contracts with towns expire, said a source. Commissioner Robert McDowell has outlined minor changes he wants made to the order, said two FCC officials. But McDowell is willing to vote for the item even if the changes aren’t made and hopes for action soon, said a source. Commissioners Jonathan Adelstein and Michael Copps are likely to vote against it, said FCC officials. Under Martin’s draft order, cable operators wouldn’t be guaranteed the same caps on public access channel and other municipal fees Bells get now until they sign new franchise agreements. Some commissioners and cable lawyers think that’s an unfair disparity. The two FCC Democrats also opposed a March order making it easier for Bells and other new video providers to gain local approval to sell TV on grounds it usurped municipal authority.

Martin may also encounter opposition from the Democrats on his plan to get a vote by year’s end on new media ownership rules. Adelstein and Copps said Friday they won’t vote on any order until the FCC decides what to do with several dozen minority ownership proposals. That didn’t stop Martin from asking the offices to vote soon. Under the chairman’s “new schedule,” an order would be out “essentially by December 18th,” McDowell told the Rainbow PUSH conference Friday. But he said the timeframe isn’t set in stone. “We'll see if that schedule holds,” he added: “As we all know, the FCC doesn’t always hold to its schedule.” McDowell noted that the rules have been under review during most of his tenure as commissioner, which began June 1, 2006.

Before Martin can get a vote, he needs to hold the final media ownership hearing. He’s asked commissioners to agree to hold the sixth such gathering in Seattle Nov. 2, but not all offices have agreed, said an FCC official. McDowell voiced optimism the process can be completed soon. “We are hopefully going to wrap up our localism and media ownership hearings in the next month or so, according to the chairman’s schedule,” McDowell told the conference. “We've had a long period” to review the rules, he added. Martin’s timeline includes a period for public comment on the final ownership rules before any vote is taken, said an FCC official.

Martin may be prepared to seek public comment on the proposed rules in a further rulemaking notice or other item, said an analyst. “If the chairman wants to circulate something fairly soon, he may be accounting for at least the possibility that the proposed rules would require another brief round of public comment,” said Stanford Group’s Paul Gallant, a former aide to past FCC Chairman Michael Powell. “That is something the Democratic commissioners have pushed for.”