Rosenworcel, in Unusual Speech for Her, Objects to Sinclair/Tribune, ATSC 3.0, Title II Reversal

Rosenworcel said the FCC shouldn't scrap protections against media concentration despite the rise of the internet. "While new platforms are multiplying, what is viral is not always verifiable," she said, citing coverage of the Las Vegas mass shooting. "Frothy stuff took hold online. Disinformation squeezed out real information." She said broadcast ownership limits help sustain media diversity, localism and competition: "I fear we are on the cusp of dismantling those values."

Rosenworcel voiced concern about FCC review of Sinclair/Tribune, a combination that "would reach more than 70 percent" of households, despite a 39 percent national cap. "There are disconcerting signs," she said. "Before I returned to the commission, the agency inexplicably resurrected an outdated and scientifically inaccurate system for tallying station ownership, known as the UHF discount. It also reversed an effort to investigate joint sales agreements. Both steps helped speed the way for this transaction. ... We are not going to remedy what ails our media with a rush of new consolidation."

The FCC needs to reassess a possible ATSC 3.0 broadcast TV standard, which the Democrat recognized promises "ultra high-definition" viewing and other innovations. "There is a lot to be excited about," she said. "But I fear the agency is about to rush this standard to market without understanding the consequences for consumers." She said the standard "is not backwards-compatible" with current devices and will add costs. "It's a tax on every household with a television," she said, urging the FCC to go "back to the drawing board and find a way to smooth the transition."

Rosenworcel blasted the FCC plan to undo Title II broadband, saying it "tears at the legal foundation of net neutrality" rules against blocking, throttling and paid prioritization that promote openness and innovation. "It has proposed cutting the rules we have and instead offering our broadband providers the power to favor sites, content and ideas; the power to discriminate with our traffic; and the power to become censors and gatekeepers for all that is online," she said.

The FCC must act to close the "homework gap" affecting students lacking broadband access at home, "the cruelest part of our new digital divide," said Rosenworcel. She said the FCC can take various steps, including "clear our skies for more unlicensed spectrum -- which will mean more Wi-Fi in more places." She said providers can help "with discounted plans and low-cost computers."

Reaction

Rosenworcel did stir things up some.

"With all due respect, her views sound like those of a New Deal dinosaur," said former Republican Chairman Mark Fowler. "Net neutrality has stifled innovation and has done everything opposite of what she says she wants, including on experimentation and entrepreneurship." He dismissed as "political" her media consolidation comments: "It’s an open secret the Democrats hate Sinclair."

"I’m delighted to see her take on some of the most controversial issues," said Sohn. "This is a good voice. I’m looking forward to hearing much more."

The speech doesn’t signal a change, but a shift in Rosenworcel's circumstances, said former Commissioner Mike Copps. "Now she’s part of a minority on an activist commission trying to undo many of the things she’s fought for.” It’s “incumbent” on Democrats to disagree with Chairman Ajit Pai’s push to get rid of many FCC rules, Copps said, calling Pai “the wielder of the weed whacker.” Democratic Commissioner Mignon Clyburn also has been speaking out aggressively under Pai, he noted. “These are troubling times at the FCC.” Commissioners and others, including Sinclair, didn't comment.

Clyburn has voiced concerns about the UHF discount restoration and the possibility a single company could own stations reaching almost 80 percent of the national audience, noted an aide when asked about Sinclair/Tribune. The aide pointed us to Clyburn statements noting "outstanding questions" about ATSC 3.0 and its potential for "unexpected costs."

3.0 Pushback

ATSC 3.0 supporters pushed back against the characterization of the new standard as a tax.

“I have very high confidence that broadcasters and consumer electronic manufacturers are not going to do anything that drives away their customers,” said ATSC President Mark Richer in an interview. Broadcasters will simulcast during the transition, and 3.0 will be viewable on mobile devices as well as TVs, he pointed out. “This is industry driven, and there’s no benefit to industry in alienating customers.” A 3.0 supporter disputed Rosenworcel’s argument that the new standard would add costs to cable and satellite companies that would be passed onto consumers and emphasized that the shift will be voluntary and market driven: “No new device to buy unless consumers want them. Think black and white to color TVs or flip phones to smartphones.”

Rosenworcel "misunderstands the goals and asks of broadcasters,” said NAB. “We simply want to compete on equal footing with national wireless and pay TV providers who routinely upgrade services in the telecom ecosystem.”

A broadcast industry official said objections to the new standard by Democrats are likely linked more to Sinclair/Tribune than the new broadcast standard. The Coalition to Save Local Media emailed Rosenworcel’s speech and its criticisms of the deal to followers Thursday afternoon. Rosenworcel "voiced serious concerns about the Commission’s actions around the Sinclair-Tribune merger and resurrecting the UHF discount,” the group said.

CCMI telecom consultant Andrew Regitsky said Rosenworcel's comments seem to go beyond a concern about a Title II net neutrality reversal. "She makes me think that that the three Republicans ... may also claim that the FCC cannot legally use section 706 to regulate the Internet," he emailed. "I think [Pai's] ultimate goal is to turn all Internet regulation over to the FTC."

Fowler said Rosenworcel doesn't understand the FCC hinders innovation. "It does not create new jobs. It does not create experimentation. It does not drive new entrepreneurs into business. It’s almost always a barrier," he said. "It’s having a free market that drives all these things. Openness is just part of the free market." Net neutrality requires parties to get FCC permission "for many things," applying a "very slow approval process to a lightning fast medium" and turning agency officials into "philosopher kings," he said.