Nexstar’s proposed buy of Tribune could complicate upcoming action on the national TV ownership cap, said broadcasters and their lawyers in interviews. The transaction (see 1812030055) doesn’t exert pressure on the FCC to act on the cap soon because it fits under current rules, but the deal could become the focus of negative attention if the FCC relaxes the ownership cap while it’s still pending. Since the deal’s designed to work under the rules, changes to them -- such as doing away with the UHF discount -- could also negatively affect it, experts said.
The FCC can't "rest on our laurels” because the rest of the world is ahead of the U.S., said Commissioner Jessica Rosenworcel at Thursday's Practising Law Institute's Institute event. The agency must “ruffle feathers” if it's necessary to reallocate more mid-band spectrum, said Commissioner Mike O'Rielly.
Commissioners voted to approve Assistant Counsel-General Ethics Jane Hinckley Halprin as the FCC administrative law judge, replacing Judge Richard Sippel, who retired Dec. 1. Thursday's announcement followed mounting speculation on Sippel's fate as a major deal saw no ALJ action. The speed of the appointment suggests the agency is expecting Halprin to act soon on the stalled Sinclair/Tribune proceeding, broadcast attorneys told us. “I'm sure she has a bunch of things to act on,” said one, Jack Goodman. Commissioner Mike O'Rielly this week said Sippel didn't appear to have taken any action on Sinclair/Tribune (see 1812040034).
An investigation by the FCC inspector general didn’t reveal any evidence FCC Chairman Ajit Pai acted improperly by not volunteering that he had been called by then-White House Counsel Don McGahn in connection with Sinclair's since-abandoned deal for Tribune (see 1812030055), said a Nov. 26 report released Monday. “We are pleased that the Office of Inspector General has confirmed for a second time that there were no improper actions taken during the Sinclair-Tribune review process,” said the agency, calling allegations against Pai “spurious.” During a July House oversight hearing, ranking member Frank Pallone, D-N.J., asked Pai if he would make public any discussions with President Donald Trump or White House staff about Sinclair/Tribune transaction. Pai said he would, within ex parte rules, but didn’t mention a phone call with McGahn about the deal that took place just a few days before the hearing, according to the report. “Although Chairman Pai could have disclosed his discussion with White House Counsel McGahn in response to this question, we do not believe that Chairman Pai made a ‘material omission,’” the report said. Pai wasn’t required to disclose the conversation under ex parte rules because McGahn didn’t express any views on merits of the proceeding, the IG said. McGahn asked what action Pai was taking, and Pai explained he had proposed designating the matter for hearing, as he had already publicly announced, the report said. Pai later disclosed the call at an August oversight hearing. The Pallone letter that triggered the IG investigation also referenced an August FCC news conference where Pai was asked if anyone in the White House had contacted him or FCC staff about the deal, and Pai replied: “No one in the White House has contacted us to express a view about the merger.” Laws prohibiting false statements don't cover comments to the media and “therefore no further analysis of this exchange is warranted,” the report said. By offering Congress “truthful but incomplete” answers, Pai demonstrated a lack of candor, the same issue over which Sinclair/Tribune was designated for hearing, said Georgetown Institute for Legal Representation Senior Counselor Andrew Schwartzman. The FCC didn't comment.
Nexstar agreed to buy Tribune for $6.4 billion, they said Monday. The fate of Tribune has been a focus of speculation since its sale to Sinclair collapsed. To stay under the 39 percent national TV-station ownership cap, the deal will include divestitures “approaching $1 billion, plus or minus,” said Nexstar CEO Perry Sook on a conference call. Nexstar is “very focused on complying with the current rules” and isn’t seeking to wait on a revised national cap or change to the UHF discount to get the deal done and approved speedily, he said.
The FCC Enforcement Bureau is creating an online portal for public safety and commercial entities to report interference issues, Field Director Charles Cooper said Thursday in an FCBA presentation. The “interference portal” will make it easier to report such complaints, and is expected to go online by Q1, Cooper said. Much of the bureau’s work on interference complaints involves public safety frequencies, many of them Coast Guard emergency frequencies, he said. The bureau gives public safety issues highest priority, Cooper said.
The 2018 draft quadrennial review NPRM’s absence of conclusions makes it hard to know what the proceeding will lead to, broadcasters and their lawyers told us. Though the item asks many questions about possible changes to radio subcaps, top-four ownership rules and the broadcast market, lack of concrete proposals leaves open the possibility the agency may not act on any of those matters (see 1811200048), they said. “They didn’t reveal their hand,” said Garvey Schubert's Melodie Virtue.
An American Cable Association petition asking the FCC to force Sinclair to resolve early the candor issues raised by the Sinclair/Tribune hearing designation order may not lead to much, communications lawyers told us. Sinclair and Chairman Ajit Pai aren't likely to want to address the matter before Sinclair’s currently scheduled license renewals in 2020, they said. The ACA petition’s reception at the FCC is uncertain, they added. “No one” expected Pai to issue the HDO and spike the deal, said Free Press Policy Manager Dana Floberg.
The FCC plans to launch a 2018 quadrennial review, classify wireless messaging as an information service, pave the way for a new high-band 5G auction, and provide rural telcos with new USF support in exchange for more deployment of 25/3 Mbps broadband, at the Dec. 12 commissioners' meeting. It's targeting votes on items to create a reassigned phone number database to help against unwanted robocalling, further "modernize" broadcast rules and issue a communications market report. The wireless messaging (including short message service or SMS) and auction items weren't among those previously expected (see 1811190047), with the first item now getting criticism.
The FCC should hold annual workshops on supplier diversity and create a web portal to make it easier for suppliers and companies to find each other, said the Advisory Committee on Digital Diversity and Empowerment in a unanimous recommendation at its meeting Monday. It heard brief remarks from Chairman Ajit Pai, discussed the prospects of the ACDDE being renewed after its charter expires, and discussed recent confidential meetings its members had with tech companies on diversity.