The “nuclear option” invoked in the U.S. Senate Thursday will likely add three President Barack Obama-appointed judges to the U.S. Court of Appeals for the D.C. Circuit, but that new Democratic majority is unlikely to strongly improve the FCC’s chances in defending net neutrality rules, industry observers told us Friday. Stifel Nicolaus analysts said the 7-4 D.C. Circuit Democratic majority could make it easier for the FCC to appeal a negative ruling by the three-judge panel that heard the case in September. But industry attorneys said that wouldn’t make a meaningful difference in the outcome, which could ultimately be determined by the Supreme Court.
The “nuclear option” invoked in the U.S. Senate Thursday will likely add three President Barack Obama-appointed judges to the U.S. Court of Appeals for the D.C. Circuit, but that new Democratic majority is unlikely to strongly improve the FCC’s chances in defending net neutrality rules, industry observers told us Friday. Stifel Nicolaus analysts said the 7-4 D.C. Circuit Democratic majority could make it easier for the FCC to appeal a negative ruling by the three-judge panel that heard the case in September. But industry attorneys said that wouldn’t make a meaningful difference in the outcome, which could ultimately be determined by the Supreme Court.
A broadcaster agreement to pay $110,000, train employees and take other compliance actions to settle an Enforcement Bureau indecency investigation is the first FCC action on such content in several years and a rare instance of the commission’s acting against non-English programming, said experts we interviewed Friday. The night before, the bureau released a consent decree where Liberman Broadcasting agreed to develop an indecency manual, name a compliance officer, train staff, report future noncompliance and file four reports over the three-year term of the settlement. Notably, said one of the indecency experts, broadcast lawyer John Crigler of Garvey Schubert, the licensee admitted it violated indecency rules for the now-discontinued talk show-type program that complaints said featured scantily-clad women with almost no obscurance of sexual parts and much unfiltered cursing in Spanish.
Carriers are expected to accede to FCC Chairman Tom Wheeler’s demand (CD Nov 15 p14) that they work out a voluntary agreement on cellphone unlocking as part of the CTIA Consumer Code, industry observers said Friday. Wheeler in particular emphasized a requirement that they notify subscribers “when their devices are eligible for unlocking and/or automatically unlock devices when eligible, without an additional fee.” Industry observers also said Wheeler’s letter signals that he’s not afraid to get tough with the group he formerly led as longtime president of the CTIA.
Carriers are expected to accede to FCC Chairman Tom Wheeler’s demand (WID Nov 15 p12) that they work out a voluntary agreement on cellphone unlocking as part of the CTIA Consumer Code, industry observers said Friday. Wheeler in particular emphasized a requirement that they notify subscribers “when their devices are eligible for unlocking and/or automatically unlock devices when eligible, without an additional fee.” Industry observers also said Wheeler’s letter signals that he’s not afraid to get tough with the group he formerly led as longtime president of the CTIA.
The FCC Media Bureau approved Media General’s merger with Young Broadcasting Friday, one day after Media General’s shareholders approved the all-stock transaction, according to an FCC order and a Media General news release (http://bit.ly/1bfSseV). The deal will add Young’s 12 network stations to the 18 already owned by Media General. The new company will be majority-owned by Young shareholders but retain the Media General name and headquarters, operating in 27 markets and reaching 16.5 million U.S. TV households. The approval comes over the objections of Dish Network, which is engaged in a retransmission consent battle with Media General (CD Oct 21 p7). Since Dish has already filed a complaint against Media General in the retrans dispute, the bureau said it couldn’t consider Dish’s retrans-related objections to the merger. “We will not take action in the context of this limited proceeding that will pre-judge the outcome of another proceeding pending before us,” said the order. The bureau also rejected an informal objection from Spartan Media, which had argued that Young Broadcasting had violated ownership rules with sharing arrangements in the past. Along with the merger, the FCC also approved “satellite exemptions” for several stations involved in the transactions, and a “failing” station waiver. Public interest attorney Andy Schwartzman said the FCC’s approval of the merger doesn’t indicate the commission’s stance on other opening mergers such as Sinclair/Allbritton or Tribune/Local, because those mergers involve controversial sharing arrangements.
Tom Wheeler was sworn in Monday as chairman of the FCC and Michael O'Rielly to the open Republican slot on the commission. Wheeler, who had all summer to think about first steps as chairman, almost immediately appointed his top staff at the agency, starting with Ruth Milkman as chief of staff (http://fcc.us/HFgesN). Industry observers said the choice of Milkman, who was Wireless Bureau chief, signals continuity on one of the top issues Wheeler faces, the incentive auction of broadcast TV spectrum. Several of those appointed worked for Wheeler in the past and most came from jobs where past entanglements are unlikely to pose ethics issues.
A longtime opponent of Clear Channel’s KFI(AM) Los Angeles wants the FCC to deny the station’s license renewal or hold a hearing on the broadcaster’s application. The National Hispanic Media Coalition said the station is a “hate radio hot spot” that continues to air what NHMC called hate speech against immigrants and other racial minorities, women and those who aren’t heterosexuals. The center, which unsuccessfully sought an FCC proceeding in previous years on media hate speech, cited in Friday’s petition to deny KFI’s renewal agency records the group got through a Freedom of Information Act request showing more than 240 consumers complained about the outlet in 2008-2011. NHMC also cited content analysis by the UCLA Chicano Studies Research Center of recordings and transcripts of the John and Ken Show, which the group has long contended fostered violence against immigrants who have entered the country illegally. The group cited NTIA’s 1993 definition of hate speech as words that threaten to incite imminent unlawful acts that may be criminalized without violating the First Amendment or that may lead to hate or prejudice that fosters hate crimes. “Unfortunately, ‘more speech’ is not a viable solution to KFI’s hate and demagoguery because extensive media consolidation in Los Angeles makes it almost impossible for market forces to mitigate the harm caused by KFI,” said the petition. “Against this rich, multicultural backdrop” of the No. 1 Latino and Asian-American market in the U.S., “KFI regularly airs offensive and dehumanizing speech against nearly every segment of the diverse community,” said the filing. A Clear Channel spokeswoman had no comment. The FCC over the years hasn’t renewed some radio licenses, though none recently, said public-interest lawyer Andrew Schwartzman, who has been involved in other petitions to deny broadcaster license renewals. He said he could recall several such failures by the agency to renew licenses that were content related.
Lawyers and other communications industry officials hope acting FCC Chairwoman Mignon Clyburn and the rest of the commission will provide information quickly on what happens next, as soon as the partial government shutdown ends and the agency and the rest of federal Washington gets back to work. Industry officials we spoke with Wednesday expressed the same emotions, relief combined with anxiety as both the House and Senate move forward on votes on a bipartisan Senate agreement to end the shutdown. Another fight could loom because the agreement would fund the government only through Jan. 15.
With many filing deadlines already having passed since the partial federal shutdown began Oct. 1, and more looming as the closure enters its third week Tuesday, the FCC potentially faces a land rush of comments the day after the government reopens. Unlike many other government sites, the FCC’s website was shuttered the day the government closed, cutting off access to documents lawyers and others need to prepare filings at the commission, especially reply comments. Several industry officials told us Friday they expect the FCC to grant a blanket waiver for all filings that came due during the closure.