Showing posts with label FCC. Show all posts
Showing posts with label FCC. Show all posts

Wednesday, December 19, 2007

Heated Hearing As FCC Approves New Ownership Rules

Radio Ink - Dec. 18, 2007

WASHINGTON -- December 18, 2007: "We generously ask big media to sit on Santa's knee, tell us what it wants for Christmas, and then push through whatever of those wishes are politically and practically feasible," said FCC Commissioner Michael Copps this morning at the FCC's public meeting as the commission prepared to vote on FCC Chairman Kevin Martin's proposal to partially relax the newspaper-broadcast cross-ownership ban.

"No test to see if anyone's been naughty or nice," Copps continued, "just a big shiny present for the favored few who already own an FCC license and a lump of coal for the rest of us. Happy holidays."

Copps said Congress and the American public have "done just about everything .. but storm southwest DC" to protest Martin's proposal, adding, "We say we're guided by public comment, yet the majority's decision is overwhelmingly opposed by the public."

The new rules passed Tuesday morning allow newspaper-broadcast cross-ownership in the top 20 markets under certain conditions, with waivers possible in smaller markets, though smaller-market cross-ownership would be presumed not to be in the public interest.

But the waiver provisions were revised overnight to reverse that presumption in smaller markets if a station is "failed" or "failing" under the FCC's definitions and the in-market buyer is the only "reasonably available candidate" or when the proposed transaction results in a new source of local news in a market -- specifically, at least seven hours of new local news on a station that didn't previously air local news.

Copps and fellow Democratic Commissioner Jonathan Adelstein aren't happy with the revision, with Copps saying he's not yet clear on the particulars because the changes were made so late but adding, "This much is clear: The new version keeps the old loopholes and includes two new ones."

Adelstein called the vote a "monumental mistake" and said, "That we're moving forward when the voices that matter are asking us to refrain defies the imagination. The FCC has never attempted such a brazen act of defiance against Congress. Like the Titanic, we're steaming ahead at full steam despite repeated warnings of danger. This effort may yet sink. We should have slowed down rather than putting everything at risk."

Copps earlier said the revised proposal circulated Monday night "granted all sorts of permanent new waivers," and Adelstein said there were 42 waivers "adopted in the dead of night on the eve of a vote." Thirty-six of the waivers involve already-grandfathered newspaper-broadcast combinations, he said, and Commissioner Robert McDowell in his opening statement noted that the rest are for companies operating under temporary waivers.

Like Copps, Adelstein is unhappy with the revised waiver conditions for markets below the top 20, calling them a "Chinese menu" of conditions that will ultimately undermine localism, competition, and diversity.

McDowell defended the process that Copps and Adelstein had said was too rushed, saying the FCC has proceeded "like a runaway glacier" -- as, meanwhile, "the private sector has been busy working around the obstacles created by the outdated regulations of yore."

About the permanent waivers, McDowell said, "We will not require divestiture of existing combinations that were grandfathered in conjunction with the 1975 rule, or that were granted permanent waivers of the rule," adding that the FCC "should not reverse course here as we modernize our rule."

Read more in Radio Ink

FCC Tweaks Cross-Ownership Rules

By Radio Ink - Dec. 18, 2007

WASHINGTON -- Despite pressure on Chairman Kevin Martin from Congress to delay the vote, the FCC this morning amended its newspaper-broadcast cross-ownership rules but made no changes to its local radio ownership and radio-television cross-ownership limits.

Under the new cross-ownership rule, the FCC will consider combinations of either a radio or TV station with a newspaper on a case by case basis, but will face a presumption that any combination will not be in the public interest. "This is a high hurdle," said FCC attorney Jamila-Bess Johnson, who presented the rule at the agency's monthly meeting this morning. "The applicants must prove that merger would create more, relevant voices."

In the nation's top 20 markets, any radio station can combine with a major newspaper, but only television stations outside of the top four according to Nielsen ratings data may merge with a newspaper. Also, any proposed newspaper/TV combo in the top 20 markets must demonstrate that eight independent voices will remain in the market post-merger.

All proposed mergers outside of the top 20 markets will face the case-by-case review. Among the criteria that will be considered include the level of media concentration in the market, and whether the combined entity will bring more local news to the market. The applicants must also demonstrate that the broadcast and newspaper entities will maintain their own staffs, and retain independent editorial standards.

Other criteria to be considered are the financial health of the individual entities. In the case of broadcast outlets, if a station has been dark for at least four months or is in bankruptcy, it will be considered a "failing" or "falied" business by the FCC. The FCC will also consider if the station has posted negative cash flow for the previous three years. A station's ratings data will also be considered.

If a merger applicant can demonstrate that a proposed combination will result in a new source of news, and will generate at least seven hours of new local news programming per week on a broadcast station, the presumption that the combination will not serve the public interest will be reversed.

While considerable time was spent on the details of the new cross-ownership rule, a scant few sentences were dedicated to discussion of the local radio ownership rule. These limits were remanded by the Third Circuit Court of Appeals in 2003 for further justification by the FCC. In her prepared remarks, Johnson noted simply that the current limits are structured under caps created by Congress, and are being retained.

Commissioner Deborah Taylor-Tate in her remarks, however, stated that the remarks of citizens who spoke out about radio consolidation at the six public hearings on the rule review weighed in the decision, and noted that large radio groups like Clear Channel and CBS are voluntarily divesting some of its radio stations. "This is a sign of the market working," she said, adding that these divestitures may improve minority and small business ownership of broadcast outlets.

Improving ownership among those groups is a hot button issue for Democrats Michael Copps and Jonathan Adelstein, who are in the minority on the five-member commission. In prepared comments at today's meeting, both expressed dismay that more isn't being done with today's vote to encourage minority and small business ownership.

The commission also retained its existing radio/television cross-ownership limits. Under these caps, one owner can control up to two television and six radio stations in a market where twenty independent voices will exist post merger, and can control two television and four stations in a market where ten independent voices will exist post-merger.

A handful of representatives from anti-media consolidation group Code Pink charged towards the commission dais just as the five commissioners were preparing to vote, with claims that included, "This vote is a sham," "The public interest is not being served by this commission, and "On behalf of the public we want to stop this vote." The activists were escorted from the room by FCC security.
Read more in Radio Ink

Thursday, December 06, 2007

Tribune Appeals Waiver Denial

By Radio INK - December 6, 2007
CHICAGO -Tribune Co. has filed an appeal of the FCC's denial of its request for indefinite waivers of the newspaper-broadcast cross-ownership ban with the U.S. Circuit Court of Appeals in the District of Columbia.

The FCC last week cleared the way for Tribune to complete its $8.2 billion buyout by granting Tribune waivers for two years, or six months after the end of litigation connected to the denial of open-ended waivers (or FCC Chairman Kevin Martin's ownership-rules revision), whichever is longer.

FCC Commissioner Michael Copps, who voted against the Tribune approval, predicted in his dissenting statement that the company would "run to the courthouse door" to trigger an automatic waiver of at least two years. "Presto!" he wrote "Tribune gets at least a two-year waiver plus the ability to go to court immediately and see if they can get the entire rule thrown out."

Tribune has grandfathered cross-ownership waivers in New York, Los Angeles, Chicago, Miami, and Hartford that wouldn't ordinarily have passed to its new owners, so it needed new waivers to complete its buyout deal. As part of the FCC's approval last week, Tribune got a permanent waiver of the cross-ownership ban in Chicago, where it owns its lone radio property, WGN-AM

Read more

Media and Energy

By Faith Chatham - DFWRCC - Dec. 6, 2007
Today Media Consolidation and Energy are hot topics in Washington. Congressman John Dingell's assessment that the FCC has been "short-circuiting procedural norms" and failing to communicate appropriately with members, other legislators and the public is circulating through Washington and across America.

FCC Chairman Kevin Martin ignited a fire storm when he moved to allow consolidation of media in the same market. See HOUSE SUBCOMMITTEE TO INVESTIGATE FCC and HOUSE SUBCOMMITTEE TO QUESTION FCC ON MEDIA OWNERSHIP

On another front, privacy is a hot button for citizens. Advancements in technology now allow internet providors to track every website visited by their customers. See WATCHING WHAT YOU SEE ON THE WEB.

We continue with the same old leap frog pattern between technological advances, profit driven infringements, citizens outcry as privacy erodes, governmental regulations, lobbyist and citizen activists demands for advantages or remedies. It is prudent for citizens to keep tabs on these developments. What news we have access to through media in our hometowns and who watches what we read and write on the internet and how that information is used is up for grabs.

House Subcommittee To Investigate FCC

By Radio INK - Dec. 6, 2007
WASHINGTON -- December 4, 2007: House Commerce Committee Chairman John Dingell (D-MI) told FCC Chairman Kevin Martin in a letter Monday that he's concerned about "procedural breakdowns" at the FCC and that the Commerce Committee's Subcommittee on Oversight and Investigation will be conducting a probe into the agency.

"Given several events and proceedings over the past year, I am rapidly losing confidence that the commission has been conducting its affairs in an appropriate manner," Dingell wrote to Martin. Though he said it's not true in the case of every proceeding, Dingell said that "a trend appears to be emerging of short-circuiting procedural norms, suggesting a larger breakdown at the agency."

He continued, "For instance, the commission does not put the text of proposed rules out for notice and comment; there is little public notice of certain proposed commission actions; and commissioners are often not informed of the details of draft items until it is too late to provide the necessary scrutiny and analysis that is so important to reasoned decisionmaking."

Martin and the four other FCC commissioners are all on the witness list for a hearing on media ownership by Commerce's Subcommittee on Telecommunications and the Internet, set for 9:30 a.m. tomorrow.

House Subcommittee Questions FCC On Media Ownership

By Radio INK - Dec. 6, 2007
WASHINGTON -- December 5, 2007: The House Commerce Committee's Subcommittee on Telecommunications and the Internet held a hearing Wednesday focusing on media ownership and other issues before the FCC, with FCC Chairman Kevin Martin and all four Commissioners in attendance.

Commerce Committee Chairman John Dingell (D-MI) in his opening statement reiterated the points he made in his letter to Martin earlier this week, saying he's seen "too much sniping among the Commissioners" and adding, "We've heard too many too many tales of short-circuited decisionmaking processes."

"The FCC appears to be broken," Dingell said. "The victim of this breakdown is a fair, open, and transparent regulatory process." He said it would be "intolerable" to let the situation continue and added, "This is why I've asked the Subcomittee on Oversight & Investigation of this committee to review how the agency is conducting its business."

As Martin began his prepared testimony, he stated that he is committed to "a robust marketplace of ideas" that is focused on "competition, diversity, and localism." He then ran down the FCC's efforts in the current media-ownership proceeding, citing the six public hearings, 10 commissioned studies, and extended public comment periods in the proceeding, then moved on to the rationale behind what he called his "relatively minor" proposal to loosen the newspaper-broadcast cross-ownership ban in the top 20 markets.

Martin cited past and pending personnel cuts at major-market newspapers to support his point that the newspaper industry is struggling and said, "We cannot turn a blind eye to the financial condition in which these companies find themselves." Allowing cross-ownership "may help forestall erosion" in the industry by allowing newsgathering and other costs to be shared.

On ownership diversity, Martin pointed to the FCC's recent revision of the low-power FM rules and said he has circulated an order that is designed to "promote diversity by increasing and expanding broadcast-ownership opportunities for small businesses, including minority- and women-owned businesses."

That order, he said, adopts most of the Minority Media and Telecommunications Council's proposals and those of the FCC's own Diversity Committee.

FCC Commissioner Michael Copps began his testimony by saying the FCC is "lurching dangerously off-course" and "giving short shift to pressing problems."

He said Martin's proposal is not a "moderate relaxation" of the newspaper-broadcast ban, but an opening for cross-ownership waivers in all markets. The conditions for a waiver, he said, "are as tough as a bowl of Jell-O," then got a laugh when said, "I have about as much confidence that a proposed combination will be turned down as I do that the next commission meeting will start on time."

Copps repeated his oft-stated desire for a new localism proceeding and called Martin's scheduled December 18 vote on his ownership proposal "an unseemly rush to judgment."

Adelstein began, "No issue on our agenda has more far-reaching consequences for the future of our democracy than this one," and cited the "bipartisan chorus of opposition to media consolidation." He echoed Copps' point that the waiver guidelines are too loose, though he said they amount to a "wet noodle" rather than Jell-O.

When the questioning began, Subcommittee Chairman Ed Markey (D-MA), asked whether the waiver requirements for markets below the top 20 is a "high hurdle, or just a speed bump." Martin said he intended the requirements to be a hurdle and said, "I absolutely would be willing to work with [the other Commissioners] on finding language to make them feel more comfortable that this is a high hurdle."

Later, Rep. Chip Pickering (R-MS) asked if the waiver conditions constitute a loophole that would "allow someone to drive a truck through." Martin responded, "It's not true that it is a loophole you can drive a truck through." He said the FCC has always allowed waiver filings, though the presumption under the new rules would be that newspaper-broadcast cross-ownership waivers in smaller markets would be against the public interest.

The waiver conditions would also take financial distress into account, he said -- "as we traditionally have in waivers" -- as well as the properties' willingness to "start new news -- if they're willing to create a new local news voice."

Copps, however, said, "This is a loophole. These factors that we are going to consider are so generic, they're so porous -- maybe it's the new media-ownership sponge, I don't know what it is -- but they scare the heck out of me."

Adelstein said that even if a property promises just "10 minutes more of news a year" or "one half-hour special," that would qualify for a waiver, and added, "I can't imagine a more porous standard."

Martin responded, "We did not say that would qualify for a waiver. That's not what the order says. What we said is, you can apply for a waiver, and these are the criteria we would consider. We did not say that you would qualify for it."

But Adelstein insisted, "The waiver standard says 'more news.' That's the only standard -- 'more news.' So what is 'more news'? There's no definition if it's five minutes, 10 minutes, or 50 hours. So theoretically, under that standard, 10 minutes can qualify."

Subcommittee Ranking Member Fred Upton (R-MI), who in his opening statement expressed support for further deregulation of radio ownership, asked why Martin hasn't supported radio deregulation. "The numbers are in," Upton said, "and we know that the [radio] industry is doing far worse today than at any time in the past. Isn't this the same situation you're trying to address for newspapers?"

Martin responded, "The most significant difference in what was occurring in the radio market and the newspaper-broadcast cross-ownership ban is that the radio market and the radio owners received some significant amount of ownership relief in 1996." In contrast, the newspaper-broadcast ban has been in place since 1975.

Reps. Hilda Solis (D-CA) and Charles Gonzalez (D-TX) both addressed ownership diversity, and Gonzalez asked Martin about the biggest obstacles to minority ownership and how the FCC plans to address the issue. "The two biggest obstacles are access to capital and access to new stations," Martin said. The FCC is addressing that, he said, by identifying where new stations are available; opening other broadcast avenues, such as LPFM; and waiving some rules for new entrants to the industry, including allowing expired construction permits to designated entities and changing the equity-plus-debt rule so other broadcasters can help finance new entrants. Martin also noted that the commission has unanimously supported the return of the minority tax certificate.

Solis raised the issue of private equity ownership in media and "transparency on who the owners really are" in those cases. "What steps will you take to make that known?" she asked. Martin said the same rules for ownership attribution apply to private equity owners as to any other, but Copps said, "Private equity is transforming the media-ownership environment."

Copps went on, "Instead of publicly held corporations, which you can at least track, and file 10(K) forms with the SEC, you have these private money funds which don't have to file. I can't find out who owns what." He said, "How can I do my job of protecting the public interest if I can't even find out who owns what?"

Saturday, July 21, 2007

Senate Democrats foil attempt to bar 'Fairness Doctrine'

By Kara Rowland - The Washington Times - July 20, 2007
Senate Democrats last night beat back a Republican attempt to attach an anti-Fairness Doctrine bill as an amendment to education legislation.

The doctrine, a former requirement that broadcasters present opposing points of view on political issues, was scrapped in 1987 by the Federal Communications Commission, which said the policy restricted journalistic freedom. The bill by Sen. Norm Coleman, Minnesota Republican, would prevent the FCC from reinstating the doctrine.

"We live in an age of satellite radio, of broadband, of blogs, of Internet, of cable TV, of broadcast TV. There is no limitation on the ability of anyone from any political persuasion to get their ideas set forth," Mr. Coleman argued in support of the Broadcaster Freedom Act of 2007. "The public in the end will choose what to listen to."

By a vote of 49-48, senators voted not to consider Mr. Coleman's amendment after Sen. Edward M. Kennedy, Massachusetts Democrat, raised a point of order. Senate rules require 60 votes to waive a point of order.

An attempt by Mr. Coleman last week to attach his bill as an amendment to a defense authorization bill was similarly blocked by Sen. Richard J. Durbin, Illinois Democrat.

In a swipe at Mr. Coleman, Mr. Kennedy accused sponsors of unrelated amendments of delaying passage of the education bill and "basically insulting the families of this country."

Mr. Coleman countered by linking a prohibition of the Fairness Doctrine to education.

"This bill is about educating young people," he said. "Well, let them have unfettered access to information."

The Fairness Doctrine has been a hot topic in the last month after a liberal think tank on June 20 concluded that political talk radio is "dominated" by conservatives 9-to-1. The report, by the Center for American Progress, said the talk-radio landscape does not serve all Americans.

Air America, a prominent liberal talk-radio network, was bailed out of bankruptcy in January by real estate tycoon Stephen L. Green.

Days after the release of the Center for American Progress report, Sen. James M. Inhofe, Oklahoma Republican, shared a conversation he said he overheard three years earlier between Democratic Sens. Hillary Rodham Clinton of New York and Barbara Boxer of California, in which the women called for a "legislative fix" to counter the influence of "extremist" talk-radio hosts. Mrs. Clinton and Mrs. Boxer denied the conversation took place.

While the current Republican-led FCC poses no threat of reinstating the Fairness Doctrine, Republicans in both the House and Senate were quick to introduce bills that would prohibit a future Democrat-led agency from doing so. In the House, Rep. Mike Pence, Indiana Republican, has 135 co-sponsors of his version of the Broadcaster Freedom Act.

Mark S. Fowler, the former FCC chairman who led the charge to shelve the doctrine prior to its later repeal, said calls for its revival are "unacceptable."

Asked whether there is any viable chance of the policy being reinstated, Mr. Fowler told editors and reporters at The Washington Times yesterday: "I don't think so; I hope not."

"The electronic press that uses electrons and airwaves should be as free as the press that uses ink and paper, period," he said.

He asserted that lawmakers who say the doctrine is in the public interest are "politicians trying to control part of the press. To say the airwaves belong to the people — all these reasons they use to regulate are excuses. They're not reasons."

Meanwhile yesterday, the Senate Committee on Science, Commerce and Transportation approved the "Protecting Children From Indecent Programming Act," a bill that reaffirms an FCC policy on so-called "fleeting expletives."
Under the bill — sponsored by Sen. John D. Rockefeller IV, West Virginia Democrat — the commission can penalize broadcasters for airing a single indecent word or image. The legislation comes more than a month after a federal court invalidated the policy as an "arbitrary and capricious" departure from previous policy and instructed the agency to either show further justification for it or eliminate it.

Mr. Rockefeller said he plans to introduce legislation to curb violent programming on broadcast, cable and satellite television. The FCC only has authority over broadcast content.
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