The video franchising proposal set for the Dec. 20 FCC agenda meeting is a top priority for FCC Chmn. Martin, he told a Thurs. Practising Law Institute Telecommunications Policy & Regulation conference. The proposal, which would make it easier for wireline entrants to provide video service like cable’s, deals directly with the “continual increase in cable prices,” Martin said. Other communications service prices have dropped, but there’s been an “almost 100% rise in cable prices” since 1996,” he told the group, calling the only brake on cable price rises competition from “wireline overbuilders.” Entry by more facilities-based video providers is “critical for broadband” buildout as well, he said. Delay caused by franchising authorities inhibits broadband infrastructure development, Martin told the group. Martin, who spoke in a “conversation” with communications attorney Richard Wiley, indicated he isn’t sure how parts of the franchising order will come out. “I hope we will be able to work through the issues,” he said. In answer to our post- session question, Martin said he never knows exactly how orders will play out in the week before an agenda meeting. But the bottom line is that he’s not concerned about the order passing, he said. But sources said the franchising item may be delayed to work out contentious issues. Some say there isn’t time to deal with both the franchising order and the AT&T-BellSouth merger right now. The franchising item probably will be pulled from the agenda, said a Commission official and industry sources. Among issues that may take require more consideration is the draft order’s provision that telcos don’t need to build out video systems to areas of towns they don’t already serve, we're told. An agency official said: “If it stays on the agenda this is going to be one of those where everyone stays here until 5 a.m. [on the morning of the meeting] haggling over the language.” -- EH, JM
Broadcasters face difficulty getting consumers to embrace what companies consider media consolidation’s benefits during the FCC’s media ownership review, 5 former commissioners told us. People get upset when they can’t find stories on topics that interest them amid a welter of radio, video and online content (CD Oct 25 p5), said Kathleen Abernathy. Consumers may blame media consolidation for that frustration, said the former Republican commissioner (2001- 2005).
Despite 12 years of GOP dominance in Congress and control of the White House since 2001, most of the communications sector’s trade associations and companies won’t be caught completely flat-footed by the Democrats’ reemergence as the party in charge in the House and Senate, sources said.
Broadcasters that go private would reduce their financial transparency, a phenomenon media activists said may subject such deals to scrutiny by parties fearing consolidation. More publicly traded companies are seeking to exit the business or be taken private as stock prices suffer from increased rivalry by Internet and other media (CD Oct 30 p3). Private firms need not disclose quarterly profit and other financial results under SEC rules.
The FCC is overstepping its authority in an inquiry of video news releases (VNRs), said RTNDA. It called the effort unconstitutional govt. oversight of newsroom decisionmaking. It’s legal for TV stations to air such promotional materials as long as they aren’t paid for them, the group said in response to a private report that found 77 TV stations had aired VNRs without disclosing them (CD April 7 p5). Media activists involved in the April report said they disagreed.
Changes at LIN TV: Douglas McCormick, ex-iVillage, and Mitchell Stern, ex-DirecTV, join board; Gregory Schmidt promoted to exec. vp-digital media; Scott Blumenthal, to exec. vp-TV; Edward Munson, to vp-station sales; Denise Parent, to vp-gen. counsel… Rainbow promotes Bill Rosolie to exec. vp-national network ad sales… Satoshi Ikeuchi, ex- Photonics Systems Group, joins Fujitsu Network Communications as pres.-CEO, replacing Takanobu Yoden, retiring… Changes at Motient: Robert Brumley moves from subsidiary TerreStar Networks to become pres.-CEO; Neil Hazard, ex-TerreStar, becomes exec. vp, CFO and treas.; Jeffrey Epstein, ex- Capitol One Financial, named gen. counsel and secy.
FCC Chmn. Martin gives great weight to opinions from top advisers who, in the eyes of many, play more crucial a role in Commission work than predecessors in previous administrations. While others vie for the list, here, based on numerous interviews with former and current FCC officials, is Martin’s inner circle:
Ex-FCC Comr. Henry Rivera heads a 4-lawyer group leaving Washington law firm Vinson & Elkins Fri. to join the Wiley Rein & Fielding (WRF) communications practice. Rivera will become a WRF partner, as will Mark Lipp. Scott Woodworth becomes an assoc.; Edgar Class, of counsel. Lipp and Class also were at the FCC. WRF will be Rivera’s 5th firm since he left the Commission in 1985, and he will become WRF’s 5th ex- commissioner. “Dick [Wiley] and I have talked on and off for years about joining forces and just decided the time was right,” Rivera told us: “It’s a dream come true.” Clients moving to WRF from Vinson & Elkins include Clear Channel, Cumulus Bcstg., Moinet Communications and First Bcstg. A lawyer said Rivera’s joining the predominantly Republican firm will give it better political balance. “That’s the whole communications group at Vinson & Elkins,” the source said.
Additions at Wiley Rein & Fielding from Vinson & Elkins’ Washington office: Ex-FCC Comr. Henry Rivera and Mark Lipp, ex-FCC, as partners; Edgar Class, ex-FCC, of counsel; Scott Woodworth as associate… XM Canada names Donald McKenzie, ex-Clearnet, senior vp-sales & mktg… Jacques Natz, ex-WTHR- TV Indianapolis, joins Hearst Argyle TV as dir.-digital media content… Comcast promotes Tim Fitzpatrick to Comcast SportNet vp-communications… Patrick Fitzsimmons promoted at wireless broadband firm Alternet to pres.; Pres. Michael Dearden returns to dir… Hallmark Channel promotes Leonard Rivera to dir.-information technology.
PBS will keep giving stations bleeped and unedited versions of shows it believes could run afoul of FCC indecency rules, Vp Lea Sloan said: “We will continue looking at shows and in cases we where we think it’s appropriate we will be offering two versions.” PBS eased editing curbs it imposed on programmers after talks with producers, regulators and stations (CD Aug 11 p4). Some stations feel certain words are inappropriate in any context for their audiences and markets, Louis Wiley, exec. editor of WGBH Boston’s Frontline said, supporting distribution of 2 versions of edgy programming. “I honor local decisions,” he said: “This is the proper thing to do.”