CHICAGO -- Group representing small cable operators urged FCC to investigate retransmission consent practices of major broadcast networks and take steps to curb “tying” of retransmission-consent rights to carriage of networks’ cable channels. Picking up cause publicly embraced and then quickly abandoned by major MSOs and NCTA last spring, American Cable Assn. (ACA) charged that such media conglomerates as Disney/ABC, News Corp./Fox Network, GE/NBC and Hearst-Argyle had forced “costly tying arrangements on smaller cable companies,” making them carry unwanted cable networks. ACA, which represents 931 cable operators with total of 7.5 million subscribers, also charged that broadcaster-owned cable networks had taken control over retransmission consent rights from broadcasters’ own local stations. “By themselves, ACA and its members have not been successful in changing the behavior of media conglomerates like Disney, News Corp. and others,” group said in FCC filing purportedly on DTV must-carry rules earlier this week. “To the contrary, retransmission consent tying is getting worse.”
Changes at ArrayComm: Joanne Wilson, ex-Lucent Technologies, named vp-standards; Randall Coleman, ex-CTIA, appointed vp- regulatory affairs… Michael Flynn, group pres.-communications, ALLTELL, joins Airspan Networks board… Bryce Dustman, ex-dir.- communications, House Ways & Means Committee Chmn. Rep. Crane (R- Ill.), named chief of staff, Rep. Wilson (R-N.M.)… Promotions at Pearson TV: Simon Spalding to head of worldwide licensing, Tony Stern to commercial dir.-International and Enterprises Div., Tara Buckwell, to exec. vp-legal and business affairs for same div… Changes at P-Com: Frederick Fromm, Oplink Communications pres., joins board; Harold Johnson, ex-Fairchild Corp., named to board and audit committee… Larry Goldberg, dir.-Media Access Group, WGBH Boston, named to FCC Technological Advisory Council… Changes at PanAmSat: Jack Shaw, CEO, Hughes Electronics Corp., elected board chmn.; Eddy Hartenstein, Hughes senior exec. vp, and Michael Gaines, Hughes vp, join board.
FCC Wireless Bureau plans to auction 365 narrowband PCS licenses in 900 MHz band starting Oct. 3. Eight of licenses will be offered on nationwide basis and 7 in each of 51 major trading areas. Deadline for comments on auction procedural issues such as reserve prices and minimum opening bids is June 25, replies July 2.
WB Network co-Pres. Susanne Daniels leaves at the of month, but may remain with parent AOL Time Warner; co-Pres. Jordan Levin becomes pres… Changes at Starz Encore Group: Jillaina Wachendorf, senior vp-sales and affiliate relations, promoted to senior vp-affiliate mktg.; Bill Giorgio advanced to senior vp- sales and affiliate relations for cable; Debbie Egner, ex-HBO, named senior vp-sales and affiliate relations for cable… Julie Barrie, FCC Mass Media Bureau, named senior legal adviser, Planning and Negotiations Div., International Bureau… Tony Mayo named CEO, Hidden Footprints.
Pegasus said FCC action on Ka-band licenses was “positive step” that would facilitate deployment of satellite services to consumers, particularly in rural areas, but Commission needed to expand effort, company said in Tues. letter to agency. Pegasus said FCC should go further by: (1) Accelerating Jan. 2002 milestones to July 2001. (2) Investigating ability of licensees to meet launch milestones of May 2002. (3) Requiring companies selling first round licenses to demonstrate that they have not previously abandoned any legitimate effort to develop their own systems. “The unfortunate reality is that reliance solely on current milestones will not prevent warehousing,” letter said.
Triton PCS told FCC this week it “likely will require a waiver” of Commission’s Enhanced 911 rules on deployment of alternative solution for Phase 2. AT&T affiliate cited complications stemming from its plans to no longer pursue handset- only approach to implementing Phase 2 for its TDMA network. Triton said it had been informed by manufacturers such as Nokia and Motorola that they won’t produce GPS-equipped TDMA handsets for use in Triton’s network. Triton said its implementation strategy for Phase 2 also was being shaped by its plan to construct GSM overlay network that eventually could replace its TDMA infrastructure. As result, Triton told FCC in updated E911 report that timing of its Phase 2 deployment “may be adversely affected.” But it said “the nature and extent of such a waiver” could be pinpointed only after Triton had assessed potential options available. AT&T Wireless and Nextel already have sought Phase 2 waivers from Commission and Cingular has indicated it may need one, although it hasn’t asked for additional compliance time. Triton said it planned to implement GSM overlay strategy similar to what AT&T Wireless is pursuing as part of alliance with NTT DoCoMo. As result, it said it was crafting “hybrid” solution for Phase 2 that would cover its existing TDMA network and planned GSM infrastructure. “Triton is proceeding as rapidly as possible with the evaluation and selection of alternative Phase 2 approaches,” company said.
CHICAGO -- FCC Chmn. Powell praised cable’s emerging “convergence platform” Tues. but strongly advised industry not to risk its competitive advantage by abusing that position. Making his first industrywide address at NCTA convention here, Powell said cable was “uniquely well positioned” to deliver broadband services to consumers and become “viable competitor” to incumbent local phone companies. He said cable had “all the tools it needs” to succeed, including technology, financing and most favorable regulatory environment it had enjoyed in generation. But he reminded industry that it had long track record of tripping over itself.
“On the basis of their digital efforts to date, broadcasters have no legitimate claim to preferential digital carriage,” AT&T said in comments on FCC must-carry rules (CS 98-120). Company said broadcast DTV efforts had “lagged significantly,” while cable launched more than 60 new digital channels: “Even in upgraded systems, dual must-carry would deprive consumers of innovative and diverse video and nonvideo services.” HBO agreed that even though cable channel capacity was increasing “there is increasing demand for that capacity from new and enhanced cable networks,” many of which are owned by broadcasters. It also said broadcasters increasingly were using retransmission consent as leverage for carriage of their owned cable channels. C-SPAN said its experience launching C-SPAN 3 and other channels showed must-carry was limiting cable channel capacity. Paxson said its proposal to allow multicast channels to be downconverted and carried on digital cable channels would ease burden on cable, potentially allowing 20 TV stations to be carried on significantly less than 1/3 of upgraded cable system’s capacity. Requiring cable carriage of only one of station’s DTV channels “forces broadcasters to make a choice that is ultimately detrimental to consumers,” CEA said: “Without assurance that digital broadcast signals will be carried during the DTV transition, broadcasters and programmers will have little incentive to produce original digital programming [and] consumers will have less incentive to purchase digital receivers.” CEA said must-carry could be based on system channel capacity, and “fears are grossly exaggerated” about impact of must-carry on cable network carriage because channel capacity is increasing “dramatically” and not all broadcasters will seek carriage at once. Satellite Bcstg. & Communications Assn. (SBCA) is “vitally concerned” over dual carriage and legal grounding of satellite must-carry regime, it said in comments to FCC on must-carry. “Considering DTV-related issues in the context of satellite carriage at this point is premature,” SBCA said. Mandating dual carriage would be setback to development of competitive environment that already was providing more video choices to consumers, SBCA said. Meanwhile, SBCA member EchoStar said it strongly supported Commission decision not to impose dual carriage requirements. “There is no basis for the Commission to reconsider the decision legally or factually. Dual carriage would be unconstitutional.”
Mandating changes in Emergency Alert System (EAS) in midst of cable’s EAS rollout “may cause disruption, increase costs and result in less participation,” NCTA said in comments on EAS rulemaking (EB 01-66). NCTA said some changes proposed by Society of Bcst. Engineers (SBE) and National Weather Service might be good, but others were “redundant or bothersome.” If FCC decides to adopt changes, it said, they should apply only to new equipment, with retrofit on existing equipment optional. SBE, in its comments, defended its proposal to lengthen monthly test window, require maximum modulation of EAS codes, make mandatory retransmission of alerts by NOAA and state and local govts. Washington State Assn. of Bcstrs. said it supported efforts to improve EAS, but FCC shouldn’t support proposals that “may have the undesired effect of reducing EAS participation.”
Satellite industry has rebounded from slow growth in 1999 and expects strong gains this year, but satellite manufacturing in U.S. isn’t keeping pace with worldwide industry due in part to satellite export controls, Futron Corp. said in 5th annual survey released by Satellite Industry Assn. (SIA) Tues. Survey reported actual numbers from 2000 and projected 2001 totals. SIA Exec. Dir. Clayton Mowry said spectrum battle between satellite and terrestrial services, chances of Berman-Rohrabacher satellite export bill (HR-1707) and priorities of new FCC Comrs. Abernathy and Copps on industry also could have impact on industry.