The House indecency bill could resurface as an amendment to the Senate telecom bill, or Senate Majority Leader Frist (R-Tenn.) may try to seek floor time to bring up the measure, several Hill sources said Thurs. Frist faces political pressure from some conservative and religious groups to take action on (HR-310) (CD May 4 p16). It passed the House in Feb. last year, but wasn’t taken up by the Senate.

FCC Chmn. Martin wants a vote on a broad media ownership inquiry soon after Robert McDowell’s delayed nomination gets Senate approval, said industry sources. After being rebuffed in his attempt to put a notice of proposed rulemaking on the Commission’s meeting agenda last year (CD March 20 p2), Martin wants to resuscitate the item within months of McDowell’s starting the job, said the sources. There was speculation the chairman would try to get a vote on the matter at McDowell’s first meeting, but we're told that’s now less likely. What’s unclear, according to Hill sources, is when the Senate hold on McDowell’s nomination will be lifted.

The FCC is holding settlement talks with broadcasters on payola as it continues to investigate (CD Aug 9 p8), a source said. Free Press attacked a rumored $3 million fine against Clear Channel as “peanuts.” The N.Y. Times reported that that firm, CBS Radio, Citadel and Entercom were trying to settle FCC probes, but the firms didn’t comment. “If Clear Channel is indeed guilty of payola abuses, the FCC should not let them off with a slap on the wrist,” said a Free Press statement. N.Y. Attorney Gen. Eliot Spitzer again lashed out at the FCC (CD March 9 p3). He said settlement talks could undermine his work, according to the Associated Press, though his office wouldn’t comment to us. “Eliot Spitzer’s reaction makes me fear that the Commission is planning to go easy on them,” Media Access Project Pres. Andrew Schwartzman said: “We've been hoping that the Commission would take payola seriously -- we would expect very substantial sanctions.” The FCC looks “forward to working with the New York Attorney General in the future,” a Commission spokesman said.

A bill by House Commerce Committee Chmn. Barton (R-Tex.) could “mark the end of the Internet as we know it,” said Steve Worona, Educause policy dir., in a conference call with other network neutrality supporters Tues. The new Barton measure (see separate story in this issue) covers federal video franchises and VoIP interconnection and emergency services, but also limits the FCC’s role in enforcing its broadband policy statement supporting network openness and neutrality, adopted last summer (CD Aug 8 p1).

A bill by House Commerce Committee Chmn. Barton (R-Tex.) could “mark the end of the Internet as we know it,” said Steve Worona, Educause policy dir., in a conference call with other network neutrality supporters Tues. The new Barton measure covers federal video franchises and VoIP interconnection and emergency services, but also limits the FCC’s role in enforcing its broadband policy statement supporting network openness and neutrality, adopted last summer (WID Aug 8 p1).

Comcast and Time Warner haven’t made public critical information on the Adelphia deal that’s under FCC review, said media activists concerned about the transaction. Some of the firms, seeking approval for the $17.6 billion cable system purchase, failed to file ex parte documents that said they're in no hurry for the Commission to conclude its review, according to the Media Access Project (MAP). FCC Gen. Counsel Samuel Feder was asked to “conduct an inquiry into possible violations,” said a letter to him from Harold Feld, the group’s senior vp, and Pres. Andrew Schwartzman. It cited comments by Chmn. Martin that suggested “he had been asked to defer action on the Adelphia matter at the request of certain of the parties.” The comments at Martin’s first news briefing were in response to a question on the status of the Adelphia deal (CD March 20 p2).

Cable firms, subject to much FCC scrutiny, may see less oversight thanks to increased competition from the merger of AT&T and BellSouth, said sources and consultants, who expect that to occur. AT&T’s $67 billion ($89.4 billion with assumed debt) buy of its rival will bolster cable arguments that cable needs less regulation due to competition from new entrants in the pay TV market, observers and industry lawyers told us. After largely sitting out pay TV, BellSouth is set to move faster with IPTV (CD March 6 p5).

N.Y. Attorney Gen. Eliot Spitzer slammed the FCC for not probing payola more aggressively, after getting settlements with 2 big music labels and bringing a fresh suit. Spitzer joined activists, a media professor and small broadcaster in saying the FCC has lagged in acting on his documentation of pervasive pay-for-play practices. Spitzer’s attack came as his office unveiled the first suit involving payola.

What some perceive as a trend toward FCC officials speaking at closed-door events “violates the spirit of open government, if not the letter of the law,” said Paul McMasters, First Amendment ombudsman for the Freedom Forum’s First Amendment Center. In response to questions, he and other FCC officials and open meeting activists said speaking at closed-door events probably doesn’t violate sunshine or open meeting rules, or even SEC regulations, but the public was better served by previous FCC administrations who refused to speak at closed events.

The FCC should ease radio ownership caps and eliminate the newspaper/broadcast cross ownership rule, Senate Telecom Subcommittee Chmn. Upton (R-Mich.) urged Thurs. Speaking at a Media Institute lunch, Upton said he made his requests in letters sent last week to the FCC asking for a rulemaking on radio ownership. He'd prefer no ownership caps, except in small markets, but compromised in his overture to the FCC because he’s a “pragmatist,” Upton said.