A second cable operator may get an FCC waiver to encrypt all channels. RCN now wants (CD Aug 16 p13) to follow Cablevision’s lead and be able to turn on and off service remotely, cutting down on signal theft and the expense and pollution of sending out technicians. Commission approval of RCN’s new request seems likely, and there will probably be less opposition to the move expressed than Cablevision faced in 2009, industry lawyers and an analyst said in interviews Tuesday. They said the regulator seems unlikely to start a rulemaking to examine whether it’s worth keeping a ban on operators encrypting channels in the basic tier. RCN wants out of that ban in Chicago and New York, where it’s gone all-digital.
The FCC must remedy paperwork problems and other shortfalls in its cross-ownership and diversity rules (CD Dec 19/07 p1) in the current media ownership review, the 3rd U.S. Circuit Court of Appeals ruled 2-1 Thursday. It threw out those rules, sending them back to the commission to be reworked in the ongoing review. The Philadelphia court noted that the agency is curing some of the old paperwork flaws in the current review. Industry and agency officials told us that can be accomplished fairly easily. A question is whether the 3rd Circuit will rule on the issue once the paperwork problems are remedied, said President John Sturm of the Newspaper Association of America, a petitioner in the case. The court earlier tossed out previous rules promulgated by a different FCC chairman appointed by President George W. Bush. All members of the three-judge panel upheld other rules.
Some who seek to change retransmission consent rules want an FCC inquiry into what TV stations charge multichannel video programming providers, to show what they contend are rising prices in a broken system. Officials at the American Cable Association and Public Knowledge, among the 14 entities that in 2010 petitioned the agency to change how it handles retrans disputes, and MVPD SureWest said in interviews that such an inquiry will help make their case. A lawyer for TV stations which oppose changes to the rules told us the onus is on MVPDs to show costs to carry TV stations’ signals are too high. An NAB official said more government involvement isn’t needed.
With fervent support from members of Congress, state legislators, local government leaders and public interest groups, “targeted reforms” of the system of designated market areas (DMAs) face “significant opposition” only “from the broadcasters,” Dish Network said in reply comments filed at the FCC. The NAB offers “unsupported doomsday scenarios” about the results of changes that “falsely equate improvements to the system” with “outright abandonment,” Dish said. Allowing a statewide license that would permit TV providers to provide in-state broadcast stations to “orphan counties” would be an “incremental” change that would deal with problems without disturbing the market, the company said. Dish was responding to the Media Bureau’s request for comments on in-state local broadcast programming information and ways to resolve the problem of orphan counties, those at least partly outside the borders of a designated market area. The bureau is putting together a report on the issue that will be provided to Congress by Aug. 27 under the Satellite TV Extension and Localism Act.
Senate passage of the House version of the Local Community Radio Act Saturday puts implementation in the hands of the FCC, said agency officials and advocates for full-power stations and the low-power ones targeted by the legislation. The bill means the commission must develop a sensible structure to strike a balance between protecting full-power FM stations from interference and creating opportunities for LPFM stations, low- and full-power station advocates said.
The House passed new legislation that would expand the number of low power FM (LPFM) stations in larger markets while protecting full-power stations from interference. HR-6533 was passed after lawmakers addressed concerns of the NAB, which some LPFM supporters said held up the original bill in the Senate. The bill was introduced by Reps. Mike Doyle, D-Pa., and Lee Terry, R-Neb., and sponsored by Sens. Maria Cantwell, D-Wash., and John McCain, R-Ariz. “This bill will allow churches, schools, neighborhood groups and others to put community-oriented programming on the air” and help first responders provide those communities with critical emergency information, Doyle said in a press release.
A GOP wave claimed longtime telecom heavyweight Rep. Rick Boucher, D-Va., and other Democrats in rural states, as Republicans seized control of the House Tuesday. The Republicans also won seats in the Senate, but the Democrats maintained power there. The GOP gain is seen as bad news for net neutrality supporters, while the loss of House Communications Subcommittee Chairman Boucher is a setback for rural telcos who supported his efforts to overhaul the Universal Service Fund.
Media ownership and retransmission consent are separate issues with different FCC dockets and shouldn’t be examined in the same proceeding, many broadcasters said in filings on the congressionally mandated 2010 quadrennial ownership review. NAB, the Fox network and companies that own TV stations affiliated with other networks, including Gray and Nexstar, rejected comments earlier this month by the likes of the American Cable Association (ACA) and Time Warner Cable linking arrangements where stations jointly negotiate carriage deals to ownership (CD July 9 p6). One mid-size broadcaster said such deals can violate ownership rules.
Cable operators large and small largely are unified on many issues that affect the industry, some of them high profile, that are pending before the FCC, our survey of executives found. Retransmission consent deals, where pay-TV operators contend broadcasters force them to pay unfair carriage fees, are the latest example of a unified message across operators of all sizes (CD May 20 p4) and the NCTA, representing big operators and programmers, and the small-operator lobbying group American Cable Association (ACA). Concern about FCC Chairman Julius Genachowski’s plan to reclassify broadband transport under parts of Title II and a desire to use cheap HD set-top boxes with integrated navigation and security features are shared by many cable system owners.
FCC members of both parties had words of caution about parts of the National Broadband Plan concerning media. Commissioner Mignon Clyburn said at Tuesday’s commission meeting that she has qualms about the reallotment of spectrum used by TV stations that the plan envisions. Commissioner Robert McDowell asked the commission to “tread gingerly” regarding set-top boxes. Blair Levin, who’s leaving the commission as the executive director of the broadband-plan work now that the document is complete, said his staff had taken concerns like Clyburn’s into account.