Salem Communications’ credit outlook has improved, Standard & Poor’s said. S&P raised Salem’s outlook to “stable” and affirmed its B corporate credit rating. “The outlook revision reflects the company’s continued stable operating performance, which has been above radio industry peers,” said credit analyst Michael Altberg. “It also reflects steady reduction in debt leverage,” he said.
It will be years, not months, before the media industry agrees on a way to measure cross-platform audiences for TV and Internet, Bernstein analyst Todd Juenger wrote in a note to investors. Nielsen and an ad agency said March 19 that they were working on such a product. First, it won’t work to simply measure the Internet usage of Nielsen TV panelists, he said. “The TV panel is too small and there is great fear of unintentionally causing changes in the TV ratings,” he said. Moreover, panel-based and direct measurement of Internet audiences has been insufficient at providing accurate reach, frequency and gross rating points metrics, he said. Nielsen’s Online Campaign Ratings already probably require a layer of so-called “data fusion” and statistical modeling to arrive at its Internet ratings data, Juenger said. Cross platform ratings will require even further fusion and modeling, he said. “Needless to say, it will take a long time for marketers (and us) to trust this data,” he said.
EU countries “should identify and eliminate conflicting personal data provisions” in their legislation, one of two lengthy data privacy studies of the European Network and Information Security Agency (ENISA) recommended. Widely varying storage periods for telecom traffic data in EU member states would suggest “that either the data minimization principle has not been appropriately observed in data retention rules ... or that the definition of a specific time frame is dictated by the inefficiency of national law enforcement bodies,” the study said (http://xrl.us/bmy95j). Further harmonization is necessary, ENISA concluded. The second study checks on the preparedness of users to “pay for their privacy.” Transparency of data disclosure policies is indispensable to allow choice, the second study said (http://xrl.us/bmy95m). The fundamental right to privacy can’t be traded away, it said.
Eligible telecommunications carriers like Verizon need more time to work with state commissions to determine the impact of the new federal rules on state Lifeline programs, Verizon said Friday in a letter supporting an extension of the deadline to comply with some Lifeline and Link-Up rules(http://xrl.us/bmy9w9). Once those determinations are made, carriers must then modify their billing systems, the letter said. State notice requirements lengthen the time needed to implement tariff changes, Verizon said. An attached chart said the notice requirement can range from 30 to 60 days in states requiring a tariff filing for Lifeline changes. Carriers of all stripes supported the USTelecom petition for a six-month extension (CD Mar 22 p10).
A Colorado bill (SB-157) that would phase out the state universal service fund by 2025 (CD March 13 p5) was approved by the Senate Business, Labor, and Technology Committee, clearing its first committee vote. The bill, which was amended, would still discriminate against a large group of consumers, CenturyLink said.
Refarming spectrum “is not a realistic alternative to address the significant and pervasive network constraints” Verizon Wireless “will face over the next few years,” Verizon said in a filing providing data to the FCC on its purchases of AWS licenses from SpectrumCo and Cox. The filing responds to a March 8 data request from the FCC (http://xrl.us/bmy9rb). Key parts were redacted. “Data on the EVDO network -- which itself is spectrum constrained in various markets -- is continuing to grow and will remain at elevated levels for some time,” the filing said (http://xrl.us/bmy9q5). “Once EVDO usage begins to decline the company will be able to evaluate and potentially implement refarming in specific geographic areas served by its network, but it will require opening up sufficient frequencies to effectively repurpose the spectrum.” The filing explains that its data usage forecasts are based on four factors: “historical network usage; device purchasing trends and projections; device usage analysis and projections; and migration strategies and radio technology selection.” Verizon said in assessing spectrum need, it focuses on two key elements: “(1) projecting future peak data traffic, examined on a sector-by-sector basis, and (2) identifying whether network capacity, based on spectrum in use, can meet the projected demand on a sector-by-sector basis.” Verizon said it supports the government’s goal of identifying 500 MHz of spectrum for broadband in 10 years. But it said: “Allowing secondary markets to ensure that spectrum is put to its highest and best use is a critical part of achieving the Commission’s spectrum policy and broadband goals, and approving these transactions would emphasize the Commission’s commitment to advancing these goals.”
The FCC Enforcement Bureau suspended a Louisiana woman from participating in the E-rate program Thursday, and commenced debarment proceedings against her, after she pleaded guilty to conspiracy to defraud the U.S. via the program (http://xrl.us/bmy9pq). Gloria Harper pleaded guilty in June to “knowingly and willfully orchestrating multiple fraudulent schemes and conspiring with others to defraud the E-Rate program through the submission of materially false and fraudulent documents, concealment of material facts, and obstruction and manipulation of the competitive bidding process involving schools and school districts located in six states,” a bureau letter said. According to the plea agreement, Harper had been bribing school officials and fraudulently signing E-rate program applications since late 2001. Her companies got about $4.5 million in E-rate contracts due to her “fraudulent schemes,” the bureau said. Harper was sentenced in February to 30 months in prison followed by three years of supervised release. The bureau also initiated debarment proceedings, and intends to make a final decision within 90 days. If Harper is debarred, she will be prohibited from participating in the E-rate program for at least three years, although the bureau may set a longer debarment period “if necessary to protect the public interest,” it said.
KXLK Austin, Texas, is the 42nd Class A station to face downgrade (CD March 22 p17) to regular low-power status since the FCC got permission from Congress to hold a voluntary incentive auction of TV channels. It’s “been on the air for less than four of the preceding 52 months” in apparent violation of the 1999 Community Broadcasters Protection Act, said a Media Bureau order giving licensee Casa of Austin 30 days to show why it shouldn’t lose Class A status (http://xrl.us/bmy9p8). Show-cause letters are at http://www.warren-news.com/showcause.htm.
A CTIA letter to the FCC doesn’t address a key part of spectrum legislation carriers would rather ignore (CD March 23 p3), NAB spokesman Dennis Wharton said in response. “Conveniently, CTIA left off its FCC list of proposed timetables the most important of all: a deadline for a complete inventory of warehoused spectrum being hoarded by CTIA members,” he said.
Commenters have 15 more days to respond to CenturyLink’s petition for forbearance from dominant carrier and certain Computer Inquiry requirements with respect to enterprise broadband services, the FCC Wireline Bureau said (http://xrl.us/bmy9oc). The telco requested the commission forbear from tariffing requirements regarding its packet-switched and optical transmission services. Thursday’s order responded to a motion for extension of time filed by CompTel, the National Association of State Utility Consumer Advocates and the New Jersey Division of Rate Counsel, who argued an extension was warranted because the CenturyLink petition included confidential information requiring a protective order so interested parties could “make informed decisions,” the order said. The bureau adopted a protective order in the matter Thursday (http://xrl.us/bmy9on). Comments now are due April 20, replies May 7.