New FCC Chmn. Powell pressed competition rather than regulation on TV and radio issues in his first news conference since taking over 2 weeks ago (see separate story, this issue). Signaling clear break with Democratic-run Commission of last 8 years, he seemed to favor scrapping FCC’s broadcast ownership cap, which prohibits broadcasters from owning TV stations reaching more than 35% of U.S. households. He came out firmly against re- regulation of cable and expressed philosophical concerns about agency’s setting restrictions on indecent TV programming or imposing political free air time rules on broadcasters. But he also avoided taking strong stands on other key TV and radio issues, such as low-power FM (LPFM), DTV transition, cable open access mandates.
EchoStar added 4 Arabic stations to DISH network programming. Customers now can choose from 2 new Arabic channel packages offering up to 10 TV and radio channels broadcast in Arabic.
SBC and unions reached tentative agreement on 3-year labor contracts covering 120,000 employees of Ameritech, Pacific Bell/Nev. Bell, Southern New England Telephone and Southwestern Bell phone companies. Agreements, which replace contracts due to expire April 1, offer wage increases of 12.25% over 3 years, union said. CWA said contracts achieved its main goals: (1) Card check recognition and neutrality for workers at SBC subsidiaries and its long distance unit. (2) Improved working conditions for service representatives and operators, including more flexibility in scheduling vacations and reduction in cap on mandatory overtime. Company-union committee will be set up to address concerns about monitoring and other job issues. (3) “Significant increases in compensation.” Along with phased-in 12.25% increase, customer service representatives will get immediate 4% raise. Customer service representatives, operators and sales associates who use bilingual skills will receive pay differential of $5 daily. Union and SBC also agreed to improvements in retirement benefits, grant of stock options, increase in adoption reimbursement and increased dental care benefits. SBC Senior Vp Gary Lucas said early contract settlements reflected “positive and productive tone” in bargaining that began in late Nov. CWA Pres. Morton Bahr said negotiations were “very positive.”
“Several infractions” of children’s ad guidelines on 3 Web sites operated by Oxygen Media were discovered by Children’s Advertising Review Unit (CARU) of National Ad Review Board, CARU said in its most recent report on self-regulation. Web sites -- www.GirlsOn.com, www.breakupgirl.com and www.tracers.net -- “in contradiction of Oxygen’s privacy policy,” didn’t follow its own parental consent “mechanism” and permitted girls under 13 to register, CARU said. CARU said one of its staffers registered for “Breakup Girl Boards” without being required to give her age and that Oxygen’s new-user registration form “does not even request the user’s age.” As result of CARU findings, Oxygen revised its policy to “clearly reflect” that children under 13 wouldn’t be permitted to register on Web site and to “implement effective age screening.” In another case, through “routine patrolling of the Internet,” in Sept. 1998 CARU discovered that Lisa Frank Web site violated interactive electronic media guidelines for children’s ads. At that time, Frank agreed to abide by guidelines, but CARU said it revisited Web site last summer and found several violations. As result, case has been referred to FTC.
TV “has become the leading cause of the high cost of modern politics,” said Alliance for Better Campaigns Exec. Dir. Paul Taylor in response to study saying average station carried 45 sec. of campaign coverage per day during election campaign (CD Feb 6 p5). He said stations also raised their ad rates and “turned their backs on their obligation to allow voters to see and hear candidates talking about issues.”
JDS Uniphase won Justice Dept. approval of $18 billion acquisition of SDL, optical component rival. Merger now requires approval of stockholders at Feb. 12 meeting and closing on Nortel acquisition of JDS’ Zurich plant for $2.5 billion in stock.
While ceding some of his agenda to traditional telecom topics, new House Telecom Subcommittee Chmn. Upton (R-Mich.) continues to seek focus on “using technology to better the lives of all Americans,” spokesman told us Tues. He said Upton wanted to pursue “initiatives in education, health, telecommuting and Internet pharmacies.” On telecom, Upton plans to examine FCC reform, broadband deployment issues, DTV transition and copyright protection on new technologies. He also wants to look at violence in media and telemarketing fraud, spokesman said. Chmn. hasn’t formulated specific positions on topics, he said.
High-power repeaters for satellite digital audio radio service (DARS) won’t interfere significantly with wireless communications service (WCS), Sirius Satellite Radio said in FCC filing responding to WCS entities (CD Feb 1 p9). Sirius submitted theoretical coverage plots for high-power transmitters that it said showed signal strengths well below interference threshold. Sirius, responding to claims that DARS might be allowed more than 1,000 high-power repeaters, said that was “irrelevant” because “1,000 times nothing [no interference] is still nothing.”
U.S. Appeals Court, D.C., panel unanimously upheld FCC’s decision to dismiss pending mutually exclusive applications to pave way for competitive bidding system for 39 GHz licenses. “The Commission balanced the need to implement the new regulatory regime against the effect of upsetting the expectations of appellants and others,” Judge Raymond Randolph wrote for court, including Chief Judge Harry Edwards and Judge David Sentelle. Bachow Communications and others challenged FCC decision to dismiss pending applications as part of transition to competitive bidding system. Commission dismissed without prejudice applications filed at least 30 days before freeze Nov. 13, 1995. It also dismissed applications filed 30 days after freeze date if they met certain mutual exclusivity factors. Court sided with FCC, finding that agency’s decision wasn’t arbitrary and capricious. “The Commission reasonably feared that processing mutually exclusive applications under an antiquated and burdensome comparative application system would diminish the efficiency gains expected from competitive bidding,” court concluded.
Nielsen has dropped 2 small-market TV stations principally owned by John Tupper after Fox affiliates in Nov. stopped paying $3,500 each month for diary-based ratings. Research firm said it still had no comment on Tupper’s charges that it “is knowingly issuing inaccurate ratings books” (CD Feb 5 p1).