The U.S. Court of Appeals for the D.C. Circuit upheld FCC reinstatement of the UHF discount, denying anti-consolidation groups’ petition for review because they didn’t show sufficient standing, according to a judgment (in Pacer) issued Wednesday morning. Some had thought the FCC might lose the case, based on oral argument, but standing was always a question.
Low-power FM broadcasters urged the FCC to adopt a petition to increase LPFM power levels and allow them more interference flexibility, but NAB cautioned against the plan, in comments posted Monday in RM-11810. “Increasing the maximum LPFM power output could not only increase interference to existing FM services, but potentially change the carefully designed hyper-local nature of LPFM service,” NAB responded to the petition from REC Networks. “There is a disparity between how LPFM stations protect FM translator facilities and how FM translator facilities protect LPFM stations,” REC said. The petition would address technical issues that are affecting LPFM stations, REC said. “More than ample time has passed to demonstrate that the interference concerns of existing broadcasters have proven unfounded in the establishment of the LPFM service,” said Cambridge, Maryland, LPFM station WHCP-LP. Prometheus Radio Project and Common Frequency endorsed the REC petition, saying the FCC should work to “simplify and mesh” LPFM and translator regulation and interference methodologies “to eliminate the inconsistencies which lead to unnecessary points of contention.” The petition seeks to grant LPFM too much flexibility, said the Educational Media Foundation. “Existing FM services are already under-protected from LPFM, and the proposals of REC would only exacerbate such under-protection.” The creation of a new class of higher power LPFM stations would be “a welcome step toward a more robust presence for LPFMs on the dial,” said the Future of Music Coalition.
The expected unraveling of Sinclair buying Tribune isn’t likely to deter future deals, said broadcast executives, brokers, analysts and attorneys in interviews (see 1807190060). Sinclair’s deal included circumstances that are unlikely to apply to other transactions, even those with sidecar companies, industry officials said. But continued uncertainty about the ownership cap and a lack of buyers still means dealmaking will be slow, said analysts. With the future of the UHF discount and the cap unclear, companies “can’t be sure what they’re buying,” said Wells Fargo analyst Marci Ryvicker.
Sinclair told FCC Chairman Ajit Pai it didn’t have the time or authority to withdraw the deal to buy Tribune after a hearing designation order (HDO) circulated, said an email from General Counsel Barry Faber to Pai Wednesday. It was filed the next day and posted Friday in docket 17-179 as an ex parte by Commissioner Jessica Rosenworcel’s office. The email mentions a Tuesday call between Faber and Pai. The draft HDO was announced July 16 (see 1807190060) and released Thursday.
FCC designation for hearing of Sinclair’s proposed buy of Tribune will almost certainly kill that deal by early August and could threaten other Sinclair licenses even if the deal goes away, said industry officials in interviews. Though Sinclair withdrew the divestitures in Dallas, Houston and Chicago (see 1807180060) targeted by the hearing designation order, "material questions remain,” said the HDO, released Thursday as expected (see 1807180066). The case “includes a potential element of misrepresentation or lack of candor that may suggest granting other, related applications by the same party would not be in the public interest,” it said.
The FCC voted to unanimously approve the draft order designating Sinclair's proposed purchase of Tribune for an administrative law judge hearing, the agency announced Wednesday evening, noting the document will be released Thursday. This came the same day the companies changed their plan. Many in the industry said pre-announcement that releasing the HDO could kill the entire deal.
The FCC draft hearing designation order (HDO) narrowly identifies lack of candor in Sinclair’s planned divestiture of WGN-TV Chicago, without listing specifics. Such details will be the focus of an administrative law judge proceeding (see 1807160048), officials told us. Commissioner Mike O’Rielly, who hasn’t voted, proposed edits to require the ALJ process to adhere to a schedule. His proposed changes wouldn’t impose a deadline for a ruling, an official said.
Sinclair buying Tribune is still considered likely to be approved, despite the expectation of an unfavorable U.S. Court of Appeals for the D.C. Circuit ruling on the UHF discount and lack of FCC action on the national ownership cap, analysts and attorneys told us Friday. The final stage of the transaction’s comment period ended Thursday, and opponents urged the FCC to reject the transaction as against the public interest. The FCC and DOJ are still seen likely to OK the transaction in some form. It’s not clear what the particulars will be or how soon, but the FCC is expected to approve, said Wells Fargo analyst Marci Ryvicker.
Commissioner Mike O’Rielly split with fellow FCC Republicans Thursday to partially dissent from an order on emergency alert system testing and false alerts, over concerns about alert fatigue. Since lone FCC Democrat Jessica Rosenworcel voted in favor, it was approved 3 to 1. “If people come to expect that when those alert signals go off they may not be real, there is a very high likelihood that they will ignore potentially life-saving information.” O’Rielly said.
A possible FCC compromise on the draft kidvid NPRM didn’t materialize and the item was approved with a 3-1 party-line split Thursday (see 1807110051). Though Commissioner Mike O’Rielly acceded to a request from Commissioner Jessica Rosenworcel to edit the item to be free of tentative conclusions, Rosenworcel said Thursday the two sides couldn’t come to agreement. She praised O’Rielly’s willingness to negotiate and didn’t identify any other concessions she requested. “I was informed that even with these edits it was not sufficient to garner a bipartisan vote,” O’Rielly said. The version approved Thursday contains the same tentative conclusions as the draft item, O’Rielly and Media Bureau staff said.