The FCC’s case-by-case top-four rule is a “nebulous promise” that leaves small and mid-market stations in “regulatory limbo,” said a group of broadcasters in an opening brief filed Friday (see 1812210070) in the 3rd U.S. Circuit Court of Appeals as part of the legal challenge of the FCC’s 2014 quadrennial review. The Multicultural Media Telecom and Internet Council and National Association of Black Owned Broadcasters filed a brief (in Pacer) challenging the incubator order and FCC inaction on diversity rules, and anti-consolidation groups filed a joint challenge of the agency’s eligible entity definition and ownership rules. Together, the legal challenges are expected to create uncertainty about FCC’s media ownership policy and the 2018 quadrennial review throughout 2019, broadcast attorneys told us.
FCC approval Thursday of Gray Television buying Raycom without additional conditions is a positive sign for other broadcasters weighing deals (see 1812200065) but doesn’t shed much light on larger-scale deals such as Nexstar/Tribune, said attorneys, broadcasters and analysts in interviews the following day. “It provides cautious optimism,” said Patrick Communications media broker Gregory Guy. Staff OK is a sign Sinclair/Tribune’s dissolution didn’t stem from “a fundamental change” at DOJ or the FCC, he said.
Early results of the first nationwide test of the wireless emergency alert system show “uneven” reception, the FCC Public Safety Bureau found from the October test of WEA and the emergency alert system (see 1810030051). Friday's public notice had more details for the EAS test, which wasn't a first, than for the WEA one because wireless test reporting isn't required, unlike for EAS. After surveying emergency communications representatives for most states and national industry associations, we found that officials, too, had better success with EAS tests. The report also squared with government predictions.
The FCC should revise must-vote rules, limit participation of bureau staff in advisory committees, allow commissioners to offer amendments during open meetings, establish mandatory sunsets for rules and change many other procedures, Commissioner Mike O’Rielly blogged Thursday listing 61 proposed revisions. “It's now time to publicly release these medium, small, and tiny, mostly non-mutually exclusive ideas, and have each produce feedback on its merits or pitfalls,” O’Rielly said in a brief introductory paragraph to his proposed list, which doesn’t offer detailed explanation of proposals. Though he lists a six items as partially implemented. An aide told us there’s no “concrete timeline” for enacting any of them though they have been raised with the office of Chairman Ajit Pai.
FCC approval of Gray’s buy of Raycom is likely around the corner, said attorneys and industry watchers. OK is presaged by DOJ’s support last week (see 1812140019) and by FCC Monday rejection (see 1812170044) of a 7-year-old appeal of an even older Raycom transaction in Hawaii. “It sure looks like they’re clearing the decks to approve the deal,” said Garvey Schubert's Lawrence Miller.
The FCC's final 2018 quadrennial review NPRM emphasizes more than the previously released draft that broadcast ownership rules may not be retained, a version comparison shows. Commissioner Mike O’Rielly said Wednesday (see 1812120054) he pushed for “stylistic” changes to make sure it didn’t lean away from removing rules, though he called the finished product “benign” and said it didn’t go far enough. A comparison of the two versions, which O'Rielly suggested we do when asked questions about what changed, shows addition or promotion of language saying the rules may not be retained. On the local radio rule, the original asks if the rule “continues to serve the public interest and remains necessary” while the final seeks comment “on whether the current Local Radio Ownership Rule remains necessary in the public interest.” Similar changes were made throughout. In a section on numerical limits, the phrase “If the commission decides the rule is still necessary” replaced language saying comments would be sought on whether the rule is necessary. The word “necessary” was also added to several sections on the local TV rule, and language suggesting the radio rules may or may not be retained was added to the embedded markets section, among others. The final version released Thursday rephrased sentences mentioning “localism” and “viewpoint diversity” as a goal for some rules. In the draft section on the local radio rule, those phrases were removed from the first sentence of a paragraph with the QR’s questions about the rule and moved to the end of the paragraph. “We also seek comment on whether the Local Radio Ownership Rule is necessary to promote localism or viewpoint diversity,” the paragraph now finishes. In a section on the AM/FM subcaps, the final also omits a comment from the publisher of Radio Ink that was included in the draft version that called NAB’s subcap proposal “a fool’s game.” The FCC also released Thursday the test reclassification declaratory ruling, approved over a Commissioner Jessica Rosenworcel dissent (see 1812120043). “This decision removes regulatory uncertainty, empowers providers to continue protecting consumers from unwanted text messages, and should foster further innovation and investment in messaging services,” the ruling says. Also released was an order on service rule changes for an auction next year of the upper 37, 39 GHz and 47 GHz bands (see 1812120046).
Localities building municipal broadband networks are “flirting with a perverse form of socialism” and pose a “serious” threat to the First Amendment, said FCC Commissioner Mike O’Rielly in a 2,200-word blog post Thursday that responded to “hysterical outrage” from critics of remarks he made before the Media Institute. “I could retreat in the face of my critics’ attacks and misinformation, or I could continue to defend the First Amendment,” O’Rielly said. He previously wrote an equally long post against criticisms of FCC handling of the since-canceled Sinclair/Tribune deal (see 1805180072).
The FCC voted 3-1 to approve the 2018 quadrennial review NPRM, with Commissioner Jessica Rosenworcel dissenting in part and Chairman Ajit Pai accusing her of not making “a good-faith attempt to reach consensus.” Though the NPRM text wasn’t released, Media Bureau Chief Michelle Carey and Commissioner Mike O’Rielly confirmed changes to the draft were made to change the way questions are phrased, as expected (see 1812110058). They said the changes were stylistic, not substantive.
The FCC unanimously eliminated rules requiring broadcasters to post physical copies of licenses at their facilities. The action came in a vote on circulation, said an order and deletion notice Tuesday. The item had been slated for Wednesday’s commissioners’ meeting. It was seen as noncontroversial and widely supported, broadcast attorneys said. It wasn’t widely seen as particularly important, they said.
The 2018 draft quadrennial review NPRM remained in flux Tuesday after a host of changes to tone and language suggested mainly by the offices of Commissioners Jessica Rosenworcel and Mike O’Rielly, FCC officials told us. Both offices sought changes intended to make the draft more “neutral” but differed on specific edits, officials said. Though one said the final item likely won’t include many changes proposed by Rosenworcel’s office, it wasn’t clear Tuesday how she will vote. “We’re combing through the changes and the commissioner is still considering it,” said an aide to Rosenworcel.