The FCC Media Bureau reached a $1.5 million settlement with commonly controlled companies that used minor modification rules to move low-power TV stations from their original communities of license to bigger markets, said a consent decree Tuesday. DTV America, Tiger Eye Broadcasting, King Forward and Tiger Eye Licensing also must relinquish more than 20 licenses and modify numerous other licenses. Several pending station applications from the broadcasters will also be dismissed.
That the FCC isn't seeking new comments ahead of the vote on its draft media ownership order on reconsideration is unlikely to present a problem in approving the rules or defending them in court, supporters and opponents of the proposed changes (see 1710260049) told us. The agency received public input on the original 2014 quadrennial review order and on the petition for reconsideration that's the basis for the draft recon order, said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman. The agency can make rules based on that record, said Schwartzman, who's involved in litigation against FCC ownership rules. Demonstrating a basis for the rule changes and that they represent a logical outgrowth from the original order and petition for recon likely will be part of the FCC’s defense against a very likely court challenge, said an official formerly in the Office of General Counsel.
The FCC’s draft ATSC 3.0 order requires broadcasters to offer the same programming on both their simulcast 3.0 and 1.0 stations but appears to have looser restrictions on contours and image quality, will allow low-power TV flashcuts, and as expected (see 1710170048), doesn’t interfere with retransmission consent negotiations involving 3.0, according to a draft order released Thursday. The draft includes a further notice in which the agency would seek comment on using vacant channels during the 3.0 transitions and on waivers for simulcasting rules.
The FCC plans Nov. 16 votes on media ownership and ATSC 3.0, as expected, (see 1710250049), and wireless and wireline infrastructure and cable items, Chairman Ajit Pai blogged, although drafts of the items have not yet been issued. Commissioners also will vote, as expected (see 1710100063), on the next phase of the FCC's spectrum frontiers initiative, setting aside high-frequency spectrum for 5G. The order would make available another 1,700 MHz of high-frequency spectrum “for flexible terrestrial wireless use while providing 4 gigahertz for core satellite use,” Pai said. The FCC approved the first order under ex-Chairman Tom Wheeler in July 2016 (see 1607140052).
A draft order on reconsideration that would eliminate cross-ownership and duopoly rules was circulated to the eighth floor to be voted at the FCC’s Nov. 16 meeting (see 1710250037), as expected, Chairman Ajit Pai told the House Communications Subcommittee during an oversight hearing (see 1710250050) Wednesday. The November meeting is widely expected to include a vote on authorizing ATSC 3.0, industry officials said. FCC action on net neutrality rules isn’t expected until December, agency and industry officials told us.
The FCC approved elimination of the main studio rule 3-2 Tuesday over the expected objections of Democratic Commissioners Mignon Clyburn and Jessica Rosenworcel (see 1710130054). Rosenworcel also voted against a plan to tweak broadband-service spectrum rules (see 1710240050). This main studio deregulation will “hollow out the unique role broadcasters play in local communities,” said Rosenworcel. Broadcasters can help communities in times of crisis, but “they can only do so when they have a real presence in their area of license,” she said. “Why would an industry that repeatedly extols the virtues of its local roots want to eliminate their only real connection to that very same community?” Clyburn said.
Broadcasters in Puerto Rico and the U.S. Virgin Islands estimate their industry sustained between $20 million and $30 million in damage from hurricanes Irma and Maria, and without financial help, some will be forced to leave the industry. That's according to Reuben Jusino, former Puerto Rico FCC resident agent, and Eduardo Rivero, task force chair and vice president of the Puerto Rico Radio Broadcasters Association. They spoke during a seminar Thursday conducted by a task force of Puerto Rico and Virgin Islands broadcasters seeking to get stations back on-air. “There are broadcasters that it's going to be difficult to come back,” said Rivero.
NBC didn’t contact the FCC after President Donald Trump’s tweeted questioning whether the network's “license” could be pulled, said NBC Broadcasting and Sports Chairman Mark Lazarus during panels (see 1710180023) at the NAB Show New York Wednesday. Lazarus declined to comment on Chairman Ajit Pai’s remarks that the FCC wouldn’t unilaterally take a station’s license. Asked about the president’s tweets, he said NBC News valued editorial independence and he's confident in NBC’s reporting: “We have great confidence that the FCC will stand by our First Amendment rights and support us and we have every confidence our licenses will be renewed.” FCC Chairman Ajit Pai faces heat for not addressing more squarely the tweets. Some Democrats won't get a Senate Commerce Committee FCC oversight hearing on the matter.
The U.S. Court of Appeals for the D.C Circuit ruled Tuesday that FCC policy of collecting information on multilingual emergency alert system notices without requiring such alerts is reasonable, denying (in Pacer) a petition for review from public interest groups including the Multicultural Media, Telecom and Internet Council (see 1705110061). “If Congress intended to require multi-lingual communications in general, and multi-lingual emergency alerts in particular, we would expect Congress to have spoken far more clearly than it has done” said the majority opinion by Judge Brett Kavanaugh joined by Judge Karen Henderson. Judge Patricia Millett agreed with the majority in ruling the FCC hadn’t violated anti-discrimination provisions of the Communications Act, but said in a dissent the agency’s 11-year delay in deciding on multilingual EAS messages was arbitrary and capricious. “The problem of ensuring effective communication to the public during crises is too grave to be ensnared in seemingly interminable bureaucratic limbo,” Millett said. Despite ruling in the FCC’s favor, Kavanaugh needled the agency for operating on “bureaucracy standard time.” Communications Act provisions against discrimination don’t specifically compel the FCC to require emergency alerting in languages other than English, Kavanaugh said. The commission isn’t being arbitrary in not acting on multilingual alerts because there are legal and technical issues with enacting them, such as the lack of FCC authority over alert originators such as local governments, the majority said. It “would be reasonable for the FCC to flatly say that the alert originators (the federal, state, and local government entities) are the parties responsible for deciding whether and when to issue emergency alerts in languages in addition to English,” Kavanaugh said. The FCC plan to seek more information from EAS entities is a repeat of its previous information requests, and the court shouldn’t allow the agency to use it as a delaying tactic any longer, Millett said. “Choosing to repeat an inquiry that has twice been asked and answered, the Commission identified no reason to believe that round three of reporting would reveal new ways to address the multilingual problem.” The majority opinion suggested the agency cease delays. “The FCC should move expeditiously in finally deciding whether to impose a multi-lingual requirement on broadcasters, or instead to leave the issue with alert originators and others,” the opinion said. “At some point, the FCC must fish or cut bait on this question.” The League of United Latin American Citizens and the Multicultural Media, Telecom and Internet Council said the decision wasn’t a total loss. “One point of agreement by all three judges is that the FCC has taken far too long to act,” the groups said in a news release. “Calling the FCC’s delay ‘bureaucracy standard time,’ the panel majority called on the FCC to ‘move expeditiously.’”
An ATSC 3.0 draft order that requires that broadcasters offer “substantially similar” 1.0 and 3.0 simulcasts and doesn’t prevent the new standard from coming up in retransmission consent negotiations is widely expected to be ready for the FCC’s Nov. 16 commissioners' meeting, said industry officials. The Media Bureau is believed to be nearly finished preparing the order, with the aim of circulating it by Oct. 26, in time for the November agenda, industry officials said in interviews. Meantime, MVPDs and broadcasters are stepping up their lobbying on the 3.0 transition.