In a meeting last week with legal advisers to FCC Comrs. Copps and Adelstein, representatives of the Newspaper Guild/CWA asked that any modification of broadcast media ownership that would allow common ownership of a newspaper and a TV station or duopolies should include a requirement that commonly owned outlets maintain separate newsrooms. The representatives cited the terms of joint operating agreements, which allow newspapers to save money through common production processes but maintain separate newsrooms. At the meeting were Linda Foley, vp-Newspaper Guild/CWA, and Debbie Goldman of CWA. They gave the advisers a copy of a resolution adopted by the AFL-CIO last month that called media monopolies “a threat to American democracy.” In the resolution, the AFL-CIO urged the Commission to retain the newspaper/broadcast cross-ownership rule, as well as rules on local TV, dual networks and national audience caps.
Notable CROSS rulings
Media General filed a motion to bifurcate and repeal the newspaper/broadcast cross-ownership ban that’s part of the package of broadcast ownership rules up for review at the FCC. Even though the Commission is expected to act on the rules in the spring, Media General sought expeditious action, saying the ban restricted the activities of an industry that was outside the FCC’s jurisdiction -- newspapers. The filing noted that the rule had not been modified since 1975. The company worried that the omnibus rulemaking could become stalled, hindering the efforts of newspapers and broadcasters to “to provide new and innovative information services.”
Canada’s foreign ownership limits for both telco and broadcasting. should be lifted, Canadian MP Andy Savoy said in an interview Fri. Savoy is a member of the House of Commons Standing Committee on Industry, Science and Technology. For the last 5 weeks, the committee has been reviewing the effective 47% foreign ownership limit in telecom and its effect on the industry’s access to capital and innovation (CD Feb 27 p11).
MERIDITH, N.H. -- Any possible FCC rulemaking mandating broadcast flag technology won’t alter copyright law, FCC Media Bureau Chief Kenneth Ferree told the New England Cable & Telecom Assn. (NECTA) Fri. “As I learn more about copyright law, I'm not sure anything the FCC does could have any effect on copyright law,” he said, still smarting from a grilling at the House Judiciary Courts, Internet & Intellectual Property Subcommittee last week (CD March 7 p1).
Media ownership bill introduced by House Commerce Consumer Protection Subcommittee Chmn. Stearns (R-Fla.) would raise ownership cap on multiple TV broadcast stations to 45% of national audience reach. Measure also would modify current law by eliminating newspaper and broadcast cross- ownership restrictions. Bill would remove restrictions on cross-ownership of broadcast station and cable system serving same community. It was unclear how that provision fit with FCC action Wed. to repeal cable/broadcast cross-ownership rule (CD Feb 27 p5). “The cable-broadcast cross-ownership rule was enacted in 1970 and had outlived its usefulness,” said Daniel Brenner, NCTA senior vp-law & regulatory policy. “As a practical matter, repeal of the rule will have little impact on the cable industry because it was previously struck down by the U.S. Court of Appeals, and MSOs have expressed little interest in acquiring broadcast stations in markets which they serve.” Also in hearing, FCC Chmn. Powell said he had instructed agency’s economists to develop economic model to evaluate local media mergers.
After presentation by Parents TV Council (PTC) Co- founder Brent Bozell in which he equated sex, violence and indecency on TV with concentration of media ownership, Comrs. Powell and Abernathy questioned Commission’s ability to regulate public’s tastes and popularity of TV shows. Exchange came in FCC’s day-long, en banc hearing in Richmond, Va., Thurs.
FCC officially repealed section of its media rules dealing with cross-ownership of cable systems and broadcast TV stations. Comr. Copps said in separate statement that he reluctantly supported order issued Wed. because U.S. Appeals Court, D.C., in Fox TV Stations v. FCC had “left us no option.” But, he said, FCC still should be addressing issue in its biennial review of media ownership rules, which it wasn’t doing.
FCC Comr. Martin said Mon. Commission must provide “greater clarity” to Enhanced 911 rules, calling order issued in response to request by Richardson, Tex., on what constituted valid public safety request for E-911 good start. At National Emergency Number Assn. (NENA) conference in Washington, Martin outlined role of states, including their need to spend E-911 funds on systems for which they were intended. He also said LECs weren’t explicitly covered in wireless E-911 rules, although FCC had made clear they have to facilitate its rollout. “If the LECs do not live up to their obligations, the Commission will pursue more formal action,” he said.
FCC Chmn. Powell’s legal adviser on media issues, Susan Eid, told Precursor Group conference Tues. that reality was that there were unprecedented levels of competition, diversity and choice in broadcast TV market. Prime-time viewing of broadcast has declined more than 30% in last decade because of competition from cable, she said. Cable captures 20% of ad revenue now, she said, and she believes clustering of cable systems will cause that industry to “compete much more aggressively and, frankly, effectively” with local broadcasters in terms of local content and advertising.
FCC Wireless Bureau granted request for waiver of cellular cross-interest rule for Alltel subsidiary CenturyTel Wireless. Order, released Fri., allows CenturyTel Wireless to acquire limited partnership in Lafayette MSA from CenturyTel. Last summer CenturyTel closed on $1.6 billion sale of its wireless business to Alltel. At the time, companies didn’t submit CenturyTel’s 49% noncontrolling stake in Lafayette to FCC for approval because Alltel’s acquisition of that interest would have been barred by cellular cross- interest rule. Instead, companies submitted separate waiver requests. Lafayette has B-side cellular license for parts of rural service area in La. CenturyTel needed waiver because Alltel held A-side cellular license for overlapping part of same rural service area (RSA) through its subsidiary Radiofone. Cellular cross-interest rule, which FCC recently lifted for urban areas but kept intact for rural markets, bars carrier with controlling stake in licensee for one channel block in cellular geographic service area from owning more than 5% in licensee for other channel block in overlapping cellular area. Bureau had to decide whether waiver of cellular cross-interest rule for part of Iberville Parish, La., would create “significant likelihood of substantial competitive harm” and whether it was in public interest. Agency said it used not just overlap area of licensees’ to judge competitive risk but broader Baton Rouge Basic Trading Area as relevant market. Six wireless operators serve that area --Alltel, AT&T Wireless, Cingular, Nextel, Sprint PCS, Verizon Wireless. No operator offers geographic differential pricing in area, order said, which means consumers face same set of price and service options regardless of where they live in area. Under deal, general partner in Lafayette partnership agreement retains operational control, with Alltel simply replacing CenturyTel as minority partner without control, FCC said. “This transaction is not in the nature of a horizontal consolidation,” it said. “The number of competitors is not reduced and concentration not increased in any market.” Agency concluded “the market is in general competitive with 6 providers offering service at similar prices.” Overlap area is very small in relation to larger Baton Rouge market and it’s not likely Alltel or Cingular would have incentive or ability to charge discriminatory prices in either smaller overlap market or larger Baton Rouge area, Commission said.