The FCC proceeding on media deregulation likely will focus on “underbrush” rather than big ticket, controversial items, attorneys in the pay-TV and broadcast spheres told us. Though lawyers on both sides told us they expect broadcasters to file comments seeking media ownership deregulation and pay-TV entities to target retransmission consent, it won’t be with much expectation of a response. Indications from the commission are that small, outdated rules are the planned focus of this proceeding, and where media entities expect to find success, attorneys told us. Lawyers expect a wide-ranging host of comments.
Commissioners unanimously approved an NPRM Thursday, seeking comment on creating a new emergency alert system code for situations when police officers are in danger. The FCC is “uniquely positioned” to support police officers and “help save lives,” said DOJ Deputy National Blue Alert Coordinator Vincent Davenport, who addressed the commissioners before the vote. The item is “a significant step forward in protecting the lives of law enforcement officers,” Davenport said. “We are not just advancing a policy,” said Chairman Ajit Pai. “We are affirming a principle: that we have a collective responsibility to protect and serve those who protect and serve us.” Though the final draft of the NPRM wasn’t released, a news release and comments from the Public Safety Bureau indicate it changed little from the draft released about three weeks earlier. The item seeks comment on creating a new EAS code that will be used to inform the public in situations where an officer has been injured, killed or is under threat, and descriptive information about a suspect is available to disseminate to the public, said bureau staff. “A Blue Alert could quickly warn you if a violent suspect may be in your community, along with providing instructions on what to do if you spot the suspect and how to stay safe,” the release said. Some states have Blue Alert systems, and the proposed rules would create a “national framework” that states can opt into, Pai has said. Some EAS officials said it’s not clear there’s a need for an additional EAS code (see 1706190080).
The retirement of an FCC security official involved in a physical altercation with a reporter last month was announced at commissioners' meeting Thursday, where new security policies involving the news media were put into effect. The retirement of Administration Security Operations Center Head Fred Bucher was planned before the May incident with CQ Roll Call Senior Writer John Donnelly and isn’t related, an FCC spokesman told us. Reporters covering the June meeting were for the first time issued bright orange badges marked “PRESS,” and the event included a noticeably more visible security presence, similar to what was in place last month when the commission considered controversial agenda items involving net neutrality.
The broadcaster spectrum consortium based on ATSC 3.0 started by Sinclair and Nexstar is accepting new member groups as both “affiliates” and “founders” and is in negotiations with “a ton” of prospective member groups, said Sinclair CEO Chris Ripley at a Media Institute event Tuesday.
A proposed Blue Alert emergency alert system code for law enforcement officers in danger (see 1705190048) could unnecessarily duplicate things the EAS can do and may not be utilized by many broadcasters, EAS officials said in interviews. “This may be a solution looking for a problem,” said Ed Czarnecki, senior director-global government affairs for EAS equipment manufacturer Monroe Electronics. DOJ’s Community Oriented Policing Services (COPS) Office has said the new BLU EAS code would increase urgency of response to such alerts. The COPS Office requested the dedicated alert code, the draft NPRM said.
Broadcasters are confident the national ownership cap will be relaxed, ownership rules will be rolled back, and broadcasters will continue to grow through M&A, said panelists at S&P Global Market Intelligence’s TV & Radio Finance Summit Thursday in New York. “Consolidation will continue,” said Nexstar Broadcasting President Tim Busch. “Consolidation has to happen,” said Heartland Media CEO Robert Prather. “There’s got to be somebody like Sinclair and Nexstar that has the clout” to push back against the more powerful networks, Prather said. There have been $4.3 billion worth of deals so far in 2017, compared with $5.2 billion in 2016, said S&P Global analyst Robin Flynn: “We anticipate seeing strong M&A momentum.”
The U.S. Court of Appeals for the D.C. Circuit rejected public interest groups’ request for an emergency stay of the FCC’s restoration of the UHF ownership discount, and ended the administrative stay of the rule (see 1706070053). “Petitioners have not satisfied the stringent requirements for a stay pending review,” said the order issued Thursday. “This is not very surprising, since stays are rarely granted. However, it is extremely disappointing,” said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman, who represented Free Press, the National Hispanic Media Coalition, Prometheus Radio Project and the others in the case. Since the restored discount’s effective date of June 5 passed during the administrative stay, the rule is effective immediately, an FCC spokesman said: “We are pleased by the court's decision.”
The FCC approved the first grants of licenses purchased in the TV incentive auction and will let “phase zero” low-power TV stations and translators displaced far ahead of the special LPTV displacement window move to temporary channels or temporarily channel share. Among those 2,317 licenses in the wireless band OK'ed were licenses bought by T-Mobile, Dish Network through ParkerB, Comcast through CC Wireless Investment, and AT&T -- 52 pages of licenses in all -- said a public notice by the Incentive Auction Task Force and Wireless Bureau. Fifty bidders paid $19.3 billion in the auction for a total of 2,776 licenses. The licenses approved cover some of the largest U.S. markets, including New York, Los Angeles and Chicago. “We have received information from T-Mobile USA, Inc. (T-Mobile), one of the recipients of the licenses granted today in the 600 MHz Band, indicating that it may commence operations or conduct FFA [first field application] testing using some of its 600 MHz Band licenses later this year,” the PN said. The displacement window for LPTV and translators likely won’t open until Q1, which could leave some LPTV and translators in the cold, said filings from the LPTV Spectrum Rights Coalition, T-Mobile and NAB (see 1706050066). To address a gap, the IATF and Media Bureau will allow low-power broadcasters that are notified by the new owners of 600 MHz spectrum that they have 120 days to cease operations to request a waiver of the current freeze on displacement applications and apply for special temporary authority (STA) to operate on a temporary channel or seek a temporary channel sharing arrangement, another PN said. The temporary channels requested must be in the bands allocated for TV and can’t interfere with existing broadcasters, the PN said. “In considering the STA request, we will assess whether the proposed displacement facility complies with our technical and interference rules.” For temporary channel sharing, “two or more eligible LPTV/translator stations may each request a waiver of the Displacement Freeze and submit a displacement application that proposes to share a channel with the other eligible LPTV/translator,” the PN said. “Relief, if granted, will be temporary.” The Media Bureau meanwhile gave special permission for KCRA (DT) Riverside, California, a winning bidder in the incentive auction, to consummate a transaction before disbursement of incentive auction payments, said another PN. Under incentive auction rules, stations that were winning bidders would have to wait until the auction payments went out, the PN said. KCRA sought to “consummate a pro forma intra-corporate reorganization” before the payments are disbursed, the PN said. The timing is sensitive and “tied to the maturity of certain notes and a new bond offering,” the PN said. Since the deal is pro forma and won’t change the holder of the license, the bank accounts or the FCC registration number involved, the Media Bureau granted the request, the PN said. “Our decision is limited to the specific facts and special circumstances before us.”
Sinclair’s proposed buy of Tribune Media would put too many U.S. homes within reach of not enough voices, media consolidation opponents, union officials, academics and MVPD officials told us. After the $3.9 billion deal, the resulting company would reach 69.4 percent of U.S. homes. “I’m not sure it’s a great thing for the American consumer,” said DePauw University media professor Jeffrey McCall. Though some broadcast-side proponents of the deal said it’s necessary for Sinclair to grow to compete in the modern media market, analysts and broadcast officials said the transaction is intended to increase Sinclair’s reach and enhance the viability of the new ATSC 3.0 broadcast standard.
The FCC ATSC 3.0 rulemaking saw more replies underscoring the sometimes contentious nature of what broadcasters hope is a switch to the next-generation standard. Earlier replies in docket 16-142 (see 1706080067) and initial comments (see 1705100072) also showed some differences among broadcasters, MVPDs and consumer electronics interests. Whether to mandate 3.0 tuners is one such issue, with CTA replying to stress the importance of not imposing tuner mandates. It was the first time in the 14-month-long proceeding that CTA commented on its own rather than jointly with NAB and the other groups that petitioned to authorize 3.0 as a voluntary, market-driven service (see 1604130065).