The FCC’s October meeting has been changed for at least a third time as Chairman Kevin Martin failed to get any other commissioner to support a DTV-related notice that drew internal controversy (CED Oct 8 p3).
Schurz Communications shouldn’t be allowed to own three LPTV stations in South Bend, Ind., because it already owns four TV stations and two radio stations there, as well as the market’s only daily newspaper, according to a petition to deny filed by Free Press. “The fact that Schurz… may even claim it has a record of superior service” in the market “is irrelevant to whether it, or any applicant, should be afforded so much power in any community,” Free Press said. Representing Free Press, Andrew Schwartzman of the Media Access Project said LPTV rules normally might allow FCC staff to approve the deal without full commission input, had Free Press not filed a petition. The stations, WMYZ-LP, WCWW-LP and WBND-LP, would be owned by WSBT Inc., which Schurz owns.
The FCC should create a new full-power commercial TV license assigned to entities using commercial digital licensees’ facilities, a public-interest lawyer planned to tell a Tuesday commission hearing on minority ownership. (See separate report in this issue.) Class S licensees would pay conventional broadcasters to use transmitters and facilities, under a proposal by Media Access Project President Andrew Schwartzman. If the contracting station broadcasts in high definition, the Class S user would need to lease spectrum to do that. The arrangements would be voluntary, Schwartzman wrote. “Interested full-power licensees would assign a portion of their bitstream to a qualified applicant in an arm’s-length transaction” under procedures in section 309 of the Communications Act, he said. It would provide a “new revenue stream for incumbent broadcasters,” promote diversity and require no legislation, Schwartzman said.
A Tuesday FCC hearing in New York on hurdles to women and minorities getting financing to buy communications properties will serve as the July commission meeting, the agency said Friday. The hearing has been moved to the Schomburg Center for Research in Black Culture from its previous Barnard College site. Speakers on the first witness panel, about equity financing, are Spanish Broadcasting System CEO Raul Alarcon, Dempster Group Managing Partner Percy Berger, Delman Coates of Enough is Enough, Columbia Capital Partner James Fleming, ZGS Communications CEO Ronald Gordon, Opportunity Capital Partner Anita Stephens Graham, Quetzal/JP Morgan Partners Managing Partner Reginald Hollinger, Syncom Funds Managing General Partner Terry Jones, Catalyst Investors Managing Partner Brian Rich, Media Access Project President Andrew Schwartzman, ShootingStar President Diane Sutter and Tower of Babel Chairman Frank Washington. Witnesses on the second panel, about loans, are CIT Communications Managing Director Charles Dreifus, InterMedia Partners Managing Partner Leo Hindery, Media Ratings Council CEO George Ivie, Oppenheimer & Co. Managing Director William Lisecky, Access.1 Communications President Chesley Maddox- Dorsey, Arbitron CEO Steve Morris, Patrick Communications Co- owner Susan Patrick, Roberts Cos. Chairman Michael Roberts, LIATI Capital Managing Director John Stevens Robling, Azteca America Executive Vice President Mayela Rosales, Inner City Broadcasting President Charles Warfield and National Association of Black-Owned Broadcasters Executive Director James Winston.
A federal appeals court remanded to the FCC a $550,000 fine against CBS for airing a split-second live shot of Janet Jackson’s breast at halftime of the 2004 Super Bowl. Writing for himself and Judge Julio Fuentes, Chief Judge Anthony Scirica of the 3rd U.S. Appeals Court in Philadelphia said the fine over a fleetingly indecent image marked a policy change made by the FCC without adequate notice. Fuentes said Jackson and Justin Timberlake, who ripped off the singer’s bustier, were independent contractors, not CBS employees, as the agency found. Judge Marjorie Rendell agreed with her colleagues’ conclusion in CBS v. FCC, dissenting in part because she felt they should have vacated the case entirely and not remanded it. Monday’s decision was foreshadowed in questions by the jurists in oral arguments (CD Sept 12 p2).
An FCC order finding Verizon unlawfully marketed to departing phone customers was unusual in many respects, some of which may provide fodder to a potential appeal by the company (CD June 23 p2), said agency and industry officials. The 4-1 vote, with Chairman Kevin Martin dissenting -- finalized late Friday but publicized Monday -- is the only time in recent memory when any chairman was in a minority of one, they said. Also unusual was the leak of the impending vote on the restricted proceeding by an FCC official acting at the behest of Martin, which included information on how Commissioner Robert McDowell would vote before he voted, they said.
Challenges to the FCC’s media ownership order will be reviewed by the 9th U.S. Appeals Court in San Francisco to determine whether to keep the case or send it elsewhere, said a participant in one of the cases. During a conference call with litigants Monday, a representative of the 9th Circuit said motions to transfer the case are due July 19, according to Media Access Project President Andrew Schwartzman. Oppositions are due Aug. 4, replies Aug 14. After that, the court will decide whether it will consider broadcaster and public-interest groups’ appeals of the easing of cross- ownership restrictions or send the case to federal appeals courts in Philadelphia or Washington, D.C., said Schwartzman.
Accepting corporate money is almost universal among think tanks and advocacy groups vocal on media, telecommunications and Internet issues, our analysis shows. The biggest donors include Verizon, AT&T, Comcast and Google, though group officials declare that funding sources don’t affect their analyses. Critics, however, note that corporate money helps keep some groups afloat, and amplifies some voices.
Accepting corporate money is almost universal among think tanks and advocacy groups vocal on media, telecommunications and Internet issues, our analysis shows. The biggest donors include Verizon, AT&T, Comcast and Google, though group officials declare that funding sources don’t affect their analyses. Critics, however, note that corporate money helps keep some groups afloat, and amplifies some voices.
A draft FCC order denies a challenge to its 3-2 approval of Tribune’s sale (CD Dec 4 p6) by media consolidation foes, said agency officials. The order dismisses a petition for reconsideration of the $8.2 billion deal by Benton Foundation Chairman Charles Benton, the Media Alliance and United Church of Christ, they said. FCC Chairman Kevin Martin circulated the order May 1, when he voted for it, but it may be a while before it’s voted on by all members and publicized, they said.