[BC] [Fwd: [Benton's Communications-related Headlines] FCC Meeting Recap]

Wed Jun 21 14:16:04 CDT 2006

---------------------------- Original Message ----------------------------
Subject: [Benton's Communications-related Headlines] FCC Meeting Recap
From:    "Kevin Taglang" <headlines at benton.org>
Date:    Wed, June 21, 2006 10:50 am
To:      headlines at lists.benton.org
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BENTON'S COMMUNICATIONS-RELATED HEADLINES on MEDIA OWNERSHIP for
WEDNESDAY JUNE 21, 2006
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FCC Meeting Recap
[SOURCE: Benton Foundation]
The Federal Communications Commission held an open meeting this
morning on two issues. The Commission launched new proceedings
concerning 1) broadcast ownership rules and 2) assessing
contributions to the federal universal service fund. Before the
meeting began, two items were dropped from the agenda. They concerned
A) the mandatory carriage of digital broadcast television signals by
cable operators ("multicast must-carry") and B) service rules for the
17/24 GHz Broadcasting Satellite Service (BSS).

1) Media Ownership Rule Review Launched
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
On Wednesday, the FCC  officially launched its review of media
ownership rules with some of the same fireworks and contentious talk
that characterized its first attempt to deregulate media ownership in
2003. The vote was unanimous to launch the proceeding, part of which
is actually required by Congress to begin in 2006, the other part on
orders from a federal court over two years ago. While they agreed it
was time to get on with it,  Commissioner Michael Copps and Jonathan
Adelstein dissented in part, arguing passionately that the proceeding
was not sufficiently attuned to issues of localism and
diversity.  Adelstein called it an inadequate start, saying it was
akin to turning in a high school term paper for a PhD thesis. If we
don't change course, he said, the rules would be rejected once again.
FCC Chairman Kevin Martin pledged an open and neutral process, saying
the FCC would hold at least a half-dozen public hearings, fund
studies of the effects of consolidation on family-friendly
programming, kids programming, news, localism, independent
programming and more, budget willing. The FCC will also hold an
extended comment period of 120 days to provide the public ample
opportunity to weigh in, said Martin. But Adelstein and Copps argued
that the review was deficient in failing to incorporate a completed
localism review launched in 2003, that it failed to assure that the
public would be able to comment on individual proposed rule changes
before they were voted on, and that the rules were not being treated
as an organic whole, with studies of the changes in one rule, say
lifting the ban on newspaper/TV station cross-ownership, on other
changes, like allowing companies to own more stations in a single
market. Chairman Martin said the FCC would incorporate an interim
status report on the localism proceeding in the rule review, calling
it an important element. While he saluted the passion of his
colleagues on the left, he also said his "dissenting colleagues may
be rushing to judgment," likening it--to pick up on Adelstein's
school theme--to giving him an F grade on the first day of school. He
said Copps and Adelstein were focusing on past processes, and that he
was confident that they would "be able to work together through all
this very contentious process."
http://www.broadcastingcable.com/article/CA6345862.html

* FCC News Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266033A1.doc
and Fact Sheet on the proceeding:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266034A1.doc

Additional coverage:

* FCC kicks off review of media
http://today.reuters.com/news/newsArticle.aspx?type=industryNews&storyID=2006-06-21T173822Z_01_N20406048_RTRIDST_0_INDUSTRY-MEDIA-FCC-OWNERSHIP-DC.XML

* FCC Begins Review of Corporate Media Ownership
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=1002725665

* FCC Votes to Re-examine Media Ownership Rules
http://www.tvweek.com/news.cms?newsId=10234

Reaction:

* FCC Chairman Martin
"We begin this dialog in a neutral and even-handed fashion.... Public
input is integral to this process. The Commission has adopted an
extended comment period of 120 days.  Over the next several months,
the Commission will hold half a dozen public hearings around the
country on the topic of media ownership to more fully involve the
American people. I look forward to hearing from the American people
on a variety of subjects at these hearings such as the impact of the
Commission's rules on localism, campaigns and community event
coverage, minority ownership, and various types of programming like
children's and family-friendly programming and independent and
religious programming.  The Commission also is creating a new webpage
on this topic that will further contribute to making this an open and
transparent process. Finally, the Commission will initiate studies to
address unanswered questions about the impact of media ownership.  We
will seek the resources necessary for comprehensive studies. They
will be on a variety of topics that will incorporate issues including
how the public gets its news and information, competition across
media platforms, marketplace changes since we last reviewed our
ownership rules, localism, independent and diverse programming and
the production of children's and family-friendly programming."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266033A2.doc

*Commissioner Copps
"[T]his innocuous-looking document initiates the single most
important public policy debate that the FCC will tackle this
year.  Don't let its slimness fool you.  It means that this
Commission has begun to decide on behalf of the American people the
future of our media.  It means deciding whether or not to accelerate
media concentration, step up the loss of local news and change
forever the critical role independent newspapers perform for our
Country.... Don't underestimate it.  We have a choice to make.  Will
we repeat the mistakes of the past?  Or will we work for a process
and an outcome that respect the millions of Americans that care
deeply about their communities' media and what their kids watch, hear
and read?  We'll soon know what choice the FCC makes.  We'll
undoubtedly have some hearings and some research this time-I think at
least that part of the lesson has been learned.  But Americans know
the difference between a fig leaf and a real commitment.  If you see
hearings in your hometown, instead of a just a few preselected
cities, you'll know.  If you see FCC Commissioners come to listen to
your point of view personally, instead of expecting you to hire a
$500 an hour lobbyist to get heard, you'll know.  If the FCC
contracts for independent, well-funded studies and seeks public
comment on those studies, instead of buying a few-half hearted,
time-crunched papers that slide into the record without comment,
you'll know.  And, critically, if the FCC shows you the specific
rules that will reshape the American media before forcing a vote,
instead of rushing from this short document to a final vote, you'll know."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266033A3.doc

* Commissioner Adelstein
"Unfortunately, the manner in which the Commission is launching this
critical proceeding is totally inadequate.  It is like submitting a
high-school term paper for a Ph.D. thesis.  This Commission failed in
2003, and if we don't change course, we will fail again.... In
particular, this item lacks commitment to three basic building blocks
of a successful rulemaking on media ownership - an issue that affects
the daily lives of every single American.  First, the process does
not commit to giving the public an opportunity to comment on specific
proposals before any changes to the rules are finalized.  Second, it
does not commit to completing the localism proceeding and rulemaking
before changing the ownership rules.  Finally, it does not commit to
making any final decision in a comprehensive manner.  Given the
history of this proceeding, these failings are astonishing."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266033A4.doc

* Commissioner Tate
"I hope that we can help consumers understand the importance of the
issues we are discussing and give them an opportunity to make their
voices heard."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266033A5.doc

* Commissioner McDowell
"As our experience with the 2002 biennial review revealed, the debate
over broadcast ownership is a debate about the vitality of our
democracy and the appropriate balance among competitive efficiencies,
diversity of voices and local focus.  The debate elicits the opinions
and passions of people from all walks of life from all over the
country.  I am eager to learn more about the issues from the
perspectives of all of the interested parties, be they broadcasters,
consumers, academics, artists or others."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266030A6.doc

* Media Access Project's Andrew Schwartzman said that if the FCC
actually does take a neutral look at the rules, rather than
approaching them from a deregulatory presumption, it will leave them
alone. "We are especially disappointed that Chairman Martin continues
to ignore public and Congressional requests that he complete the
FCC's long delayed localism inquiry. Broadcasters can best serve the
public by addressing local needs.  We are certain that the results of
a serious study of broadcasters' performance will support our
position that media consolidation is incompatible with effective
public service."
http://www.broadcastingcable.com/article/CA6345862.html

* Seattle Times: "FCC: Try listening this time around"
http://seattletimes.nwsource.com/html/editorialsopinion/2003074364_fcced21.html

* Prometheus Radio Project
"Our hundreds of low power stations are mostly volunteer operations
where hundreds of local people at each station, pouring their good
intentions and their time into doing something good for their
communities. As their representatives, it was terrifying for us to
challenge the FCC on rules that the former Chairman wanted so badly:
with one stroke of a pen, an angry FCC Chairman can make choices that
destroy the hopes and dreams of the people that are making low power
radio happen in their communities. In fact, there is a proceeding
sitting before the FCC right now where even through mere inaction,
the FCC can suffocate the future of LPFM. While those potential
stations waited five years or more for the commission to give them
access to their own airwaves, they watched their potential
frequencies get given away to those who already dominate every
market. Even though it puts the tiny 100 watt slice of the media pie
that we have won in jeopardy, low power FMs feel that the fate of the
American media is too important to leave it in the hands of a gaggle
of corporations. When the rules are reworked this time, let's do it
the right way"

* Public Interest Groups Respond to New FCC Ownership Rules
"The FCC needs to heed the lesson of its previous media ownership
proceeding and this time adopt a more open, more inclusive process as
it considers any changes to its rules," said Benton Foundation
President Gloria Tristani, who served as an FCC Commissioner from
1997 to 2001. "The American public must have every opportunity to be
engaged in and actively participate in the policy decisions that will
determine the future of their media."
http://www.freepress.net/press/release.php?id=156

* Common Cause
"Today the Federal Communications Commission (FCC) voted to begin a
process that is likely to allow our conglomerated media to grow even
bigger.  And the FCC is doing so without ensuring that the American
people have adequate time and opportunities to weigh in. FCC Chairman
Kevin Martin passed up a golden opportunity to make clear to the
American public that this is no longer Michael Powell's
FCC.  Instead, the public remains uncertain about whether the FCC
intends to change its ways and truly commit to involving them in
these crucial media ownership decisions. We've been down this road
before.  In 2003, the FCC proposed new rules that would have allowed
a single company to own the local newspaper, up to three local TV
stations, up to eight radio stations, and the local cable system in
one media market.  Ultimately, the rules and the closed-door process
that created them were rounded rejected by Congress, by the courts
and by the public.  Today Chairman Martin did little to assure us
that the public will be involved this time around.  Six public
hearings are insufficient when you recall that in 2003, more than two
million Americans weighed in on the media ownership proceeding.  Even
more troubling, we have no assurance from the Commission that the
rules will be considered in a comprehensive package that allows the
public to understand the full impact of these changes.  Common Cause
and its 300,000 members and supporters will be watching the actions
of the Commission carefully, and we call on Chairman Martin to listen
closely to the voices of the American people before giving big media
companies new special-interest benefits."
http://www.commoncause.org/

2) Internet phones must pay into subsidy fund
    [SOURCE: Reuters]
Federal Communications Commission on Wednesday voted to require
Internet telephone services like Vonage Holdings Corp. to contribute
to the universal service subsidy program. The agency also decided to
increase the amount wireless telephone providers would have to pay
into the Universal Service Fund, which subsidizes phone service to
rural and low-income households as well as communications services
and Internet access for schools, hospitals and libraries. The move
may lead to higher bills for wireless and Internet telephone
customers because the companies typically pass the fees on to subscribers.
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID=2006-06-21T150553Z_01_WAT005880_RTRUKOC_0_US-TELECOMS-FCC-USF.xml

* FCC Press Release:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266030A1.doc

* FCC Chairman Martin:
Maintaining the stability of the universal service contribution
system is one of the Commission's most important
responsibilities.  We take an interim step today to ensure the
stability of the fund by raising the wireless safe harbor and
broadening the contribution base to include interconnected VoIP
providers.  We take these actions because we recognize the changing
telecommunications marketplace.  First, for the first time in nearly
four years, we raise the mobile wireless safe harbor from 28.5 to
37.1%.  Second, we require interconnected VoIP providers to
contribute to the fund.  The preservation and advancement of
universal service depend on the Commission's ability to respond
effectively to the ever-evolving telecommunications
marketplace.  Today's order recognizes the increasing use of wireless
and VoIP services by consumers and adjusts the Commission universal
services rules accordingly.  Thus, the actions we take today ensure
that the contribution base reflects the current market
realities.  And, at the same time, our actions ensure that universal
service contributions remain equitable and nondiscriminatory.
Although today's item should ensure the stability and sufficiency of
the universal service support system, it is just an interim step.  I
still believe that this system needs fundamental reform, and I remain
committed to adopting and implementing a numbers-based contribution
system.  Accordingly, our work in this area is far from complete.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266030A2.doc

* Commissioner Copps
The Order before us today takes some important steps towards shoring
up the financial stability of the universal service fund.  It does so
by raising the wireless safe harbor contribution, by requiring
interconnected VoIP providers to contribute to the fund, and by
increasing the FCC's ability to ensure that providers are accurately
and completely reporting their universal service obligations.  I
support and approve these steps. But the outcome isn't all good.
Today's actions need to be understood in a broader context, because
universal service needs to be seen whole.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266030A3.doc

* Commissioner Adelstein
Despite the best efforts of our talented staff, it is difficult to
forecast the precise impact of the measures we adopt today on overall
contributions.  Indeed, this Order makes no definitive findings about
what level of contributions will be recovered through these
changes.  This Order also does not attempt to analyze the extent of
the Commission's decision last August on the overall revenues
available for universal service purposes.  It is clear, however, that
exempting broadband Internet access revenues would remove a sizable
and rapidly-growing segment of the telecommunications sector from the
contribution base.  That Congress contemplated that our universal
service mechanisms would evolve as technology evolves is certainly
evidenced in the broad permissive authority it gave the Commission to
expand the contribution base.  As I said at the time of the
reclassification, I would have preferred to exercise our permissive
contribution authority to address this potential decline in the
contribution base permanently.  For these same reasons, I concur in
part to this item, which preserves a status quo with respect to
universal service that strikes me as inconsistent with the intent of
Congress and an evolving level of universal service.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266030A4.doc

* Commissioner Tate
We must remember that we are taking these actions because all
consumers should be able to access services at reasonable rates and I
remain committed to encouraging the deployment of new services to
Americans in underserved regions.  That is important to all consumers
because, from the bustling streets of our biggest cites to the most
remote native villages in Alaska, hundreds of miles from the nearest
paved road, we all rely on a common communications network to keep
our families, friends, and businesses connected as a nation.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266030A5.doc

* Commissioner McDowell
The Universal Service system is in dire need of comprehensive
reform.  Today's action is simply an interim measure that will help
bridge the gap between the deteriorating status quo and a fairer and
more sustainable system for the future. Today, we adopt interim
changes to the Universal Service contribution methodology that are
fair and reasonable.  By setting appropriate safe harbors and
allowing wireless carriers and VoIP providers, in determining their
USF contribution, the option of either using such safe harbor,
utilizing traffic studies, or reporting actual interstate revenues,
we provide the right balance of administrative ease and incentive to
contribute based on actual interstate and international
revenues.  These interim measures also ensure that the fund remains
solvent for the near term and serve as an important first step toward
broadening the fund's contribution base to ensure equitable and
nondiscriminatory support  of the Fund in an increasingly digital world.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-266030A6.doc
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Communications-related Headlines is a free online news summary
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Communications in the Public Interest
1625 K Street, NW 11th Floor
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headlines AT benton DOT org

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