Monty Tayloe

The FCC will do a study of how Hispanic TV station ownership relates to Hispanic programming and viewing habits, and begin field testing its study of critical information needs (CIN), the commission said in a news release Thursday. The National Hispanic Media Coalition (NHMC) and several industry observers said the study and the CIN test represent important steps toward more diversity in broadcasting and better serving the growing Hispanic population. “Latino ownership diversity has been an ongoing challenge for broadcast -- good, integrated data should direct the FCC’s future efforts to engender both ownership opportunities AND more robust Latino-serving content in English and Spanish, across platforms,” said Jason Llorenz, director-innovation policy for Latino Information Network.

A moratorium on taxation of Internet access should become permanent, said CTIA and the Internet Tax Freedom Act Coalition that includes NCTA, NTCA, T-Mobile, Amazon and many other companies. The current moratorium, extended three times since 1998, is to expire Nov. 1, 2014, unless proposed legislation to make it permanent is passed. The state taxes that would take effect if the moratorium expired would mean higher prices for Internet access, which would hurt the growth of the wireless industry and price out lower-income customers, said CTIA Vice President-Government Affairs Jot Carpenter at an Institute for Policy Innovation event Tuesday.

Increasing the amount of unlicensed spectrum available for Wi-Fi use is “a major policy objective” for Comcast, said Executive Director-Regulatory and Public Affairs David Don at the Institute for Policy Innovation’s Communications Policy Summit Tuesday. Calling Wi-Fi “the last bottleneck,” Don said Comcast is investing millions of dollars in wireless connectivity. A 200,000-hotspot network built by Comcast, Time Warner Cable, Bright House Networks, Cablevision and Cox Communications could soon be at 500,000 or even over a million hotspots, he said. Don said moving the country to a next generation Wi-Fi standard that will allow gigabit speeds “needs to be a focus” for the communications industry. Though Don acknowledged there are no applications that would make full use of those high speeds, he said as more devices in homes make use of Wi-Fi connectivity, the higher speeds will be needed to accommodate the increased traffic. Regulators and others are becoming open to the necessity of freeing up unlicensed spectrum, Don said. “Folks are starting to come around in this town to the idea that we need a balanced spectrum policy.”

The FCC missed during the government shutdown a legislative deadline to approve accessibility rules for user interfaces and program guides (CD Oct 15 p1). That won’t necessarily mean negative consequences for consumers or the industry, said the American Foundation for the Blind (AFB), CEA and communications attorneys in interviews. The proposed user interface and program guide rules are mandated by the 21st Century Communications and Video Accessibility Act (CVAA). The FCC was required to implement them by Oct. 8, and companies were to be in compliance that same date with several previously approved CVAA rules.

With the FCC about to transition to a new chairman and all proceedings on hold for the government shutdown, it’s hard to know if cable industry efforts to free up unlicensed spectrum for Wi-Fi will be successful, said several communications attorneys and industry observers in interviews. Cable needs unlicensed spectrum to bridge the gap between consumer demand for mobile broadband and the available wireless spectrum, said New America Foundation Wireless Future Project Director Michael Calabrese in a report sponsored by Time Warner Cable released last week (CD Oct 10 p14). “There’s no possible way the industry can meet consumer demand for movable data at affordable prices using only licensed spectrum,” he told us. “We need to have a second path.”

The FCC under Chairman nominee Tom Wheeler should make it a point soon after Wheeler and Michael O'Rielly are sworn in to lay out its view of how competition should be regulated, said ex-Chairman Reed Hundt during a Technology Policy Institute panel Tuesday. “Adopting a fundamental competition policy is one of the first orders of business for the new commission.” In a paper (http://stanford.io/16KZBGr) referenced repeatedly at the event, he said the FCC should let the market work, but be ready to step in with regulation to address bottlenecks and protect competition as needed (CD Sept 30 p11). AT&T Senior Executive Vice President Jim Cicconi said the commission should focus instead on large communications policy projects like the IP transition and the incentive auction. “Where I get nervous is when the FCC tries to operate like a mini antitrust agency,” said Cicconi. “They're not the expert agency when it comes to antitrust and competition."

The FCC should hold an open forum with broadcasters to discuss whether they should voluntarily stop using the name “Redskins” for Washington’s NFL team, said a group of former Democratic FCC officials and communications attorneys, academics and activists in a letter sent to acting Chairwoman Mignon Clyburn Thursday. Former FCC Chairman Reid Hundt -- one of the letter’s co-signers -- said it had its genesis in a discussion he had with Minority Media and Telecommunications Council President David Honig, who also signed the letter. “We decided a disparagement of one minority group is a disparagement of all minority groups,” said Hundt in an interview. An FCC forum on the Redskins name “need not answer any questions of legality nor necessarily lead to regulatory intervention,” said the letter. Instead, the forum would focus on “self-regulation” by broadcasters and its application to the Redskins’ name. “The FCC has unquestioned authority to convene an open forum with broadcasters to discuss whether they should voluntarily stop using the name,” said the letter, citing several media personalities who have said they will no longer use the word “Redskins.” Those who signed the letter “hope that an open forum hosted by the FCC will encourage broadcasters to follow suit,” said a news release issued by Hundt. By using its authority to convene the forum, the FCC “has the opportunity to act as a principled and transparent leader during a time of distressing difficulty in the nation’s capital,” said the letter. The letter was signed by former FCC commissioners Jonathan Adelstein, Nicholas Johnson and Tyrone Brown, Ambassador Karen Kornbluh, former FCC Chief of Staff Blair Levin, former FCC General Counsel Christopher Wright now of Wiltshire Grannis, public-interest attorney Andrew Schwartzman, who consults for Free Press, Charles Firestone of the Aspen Institute, former NTIA administrators Henry Geller and Larry Irving, Communications Workers of America Telecommunications Policy Director Debbie Goldman, Wiltshire Grannis telecom lawyer John Nakahata, Best Best municipal lawyer Nicholas Miller, the National Coalition for Asian Pacific American Community Development and others.

Several Utah broadcasters and Fox are seeking a preliminary injunction against Internet streaming service Aereo that would bar it from transmitting copyrighted material in most of the U.S., according to filings in U.S. District Court in Salt Lake City. “Aereo’s conduct is copyright infringement and should be preliminarily enjoined,” said a motion filed by Community Television of Utah, KUTV and Fox. Aereo launched in Utah six weeks ago, and has been retransmitting broadcasts from Salt Lake City stations KSTU, KUTV and KMYU in St. George, said the filings. Aereo’s service undermines the broadcasters’ ability to conduct retransmission consent negotiations, said the filings. The broadcasters have asked the court to grant an injunction that would apply everywhere in the U.S. except for the jurisdiction of the 2nd U.S. Circuit Court of Appeals in New York, where Aereo won its challenge against a previous injunction earlier this year (CD April 2 ). Hearst is also seeking an injunction against Aereo in U.S. District Court in Massachusetts for its Boston service (CD July 17 p6). In addition to Salt Lake City and Boston, Aereo streams broadcast TV in New York, Atlanta, Miami, Houston and Dallas, said a release from Aereo. The injunction sought against Aereo in Utah is similar to one granted against competing service FilmOn X in Washington, D.C., U.S. District Court in September (CD Sept 9 p18). FilmOn -- formerly called Aereokiller -- appealed that injunction to the U.S. Court of Appeals for the D.C. Circuit last month, and is awaiting a decision on another appealed injunction in the 9th U.S. Circuit Court of Appeals in California (CD Aug 29 p5). Aereo is also still in the midst of the case in U.S. District Court in New York that originally spawned the injunction that it successfully challenged in the 2nd Circuit. An Aereo spokeswoman said in an email that Fox had failed in its previous attempts to get an injunction in New York and the broadcaster is “simply not entitled to repeated do-overs on this matter.” Aereo will respond “to this latest attempt at a mulligan in due course,” said the spokeswoman. A New York magistrate judge ruled Monday that Aereo founder Chet Kanojia and Chief Technical Officer Joseph Lipowski will have to submit to an additional hour of deposition from plaintiffs ABC and WNET and will have to answer questions about Aereo’s patents. Aereo had asked Judge Henry Pitman to reconsider the ruling, citing attorney-client privilege and other arguments. However, Pitman denied the request for reconsideration. “It is beyond question that the attorney client privilege protects only communications with counsel, not the underlying facts that are communicated to counsel,” said Pitman.

The government shutdown’s freeze on filing documents with the FCC makes transactions difficult to complete, but it’s unlikely to have much of an effect on them in the long term, said satellite, cable and broadcast brokers and analysts in interviews. “I don’t think [the shutdown] will lead to less deals, it'll just lead to less announced deals,” said BIA/Kelsey analyst Mark Fratrik. “Once the shutdown ends, we'll have a flurry of deal announcements.” The shutdown is likely to delay mergers and acquisitions rather than kill M&A, but that delay could have consequences for buyers and sellers banking on deals occurring in a specific time frame, several brokers said. “There may be some very unhappy people involved in transactions” if the shutdown lasts for a long time, said broadcast broker Robert Heymann, Chicago director of Media Services Group.

The FCC needs better data “hard and fast” to create policy that would increase the number of minority-owned broadcast stations, said acting Chairwoman Mignon Clyburn at the National Association of Black Owned Broadcasters conference. Of several FCC commissioners and bureau personnel who had been scheduled to speak at the event, she was the only one to show up, due to the government shutdown. A panel meant to consist of FCC bureau chiefs instead was staffed by a broadcast attorney and officials from NAB and the Minority Media & Telecommunications Council, and a “Dialogue with Commissioners” event Friday that was planned to include commissioners Ajit Pai and Jessica Rosenworcel will be reformatted, NABOB said. Clyburn and conference panelists briefed attendees on several proposals at the FCC and in Congress that might address the difficulties of minority broadcasters, but she said the FCC’s collection of data is a prerequisite for changes. “A complete picture of the media landscape is necessary to entertain … any major policy adjustment in the short term,” she said.