The FCC shouldn’t transfer 6 radio licenses to Armada Media because a shareholder was charged with fraud, said Media Access Project Pres. Andrew Schwartzman. The Commission should “defer action on the applications” until 7 felony counts against Nicholas Hurtgen are resolved, Schwartzman wrote Media Bureau Chief Donna Gregg: “The mere possibility that an applicant not presently licensed by the Commission… will be convicted of multiple felonies surely raises substantial and material questions.” Aberdeen Radio agreed to sell Aberdeen, S.D., stations including KSDN(FM), KGIM(FM) to Armada.

FCC Chmn. Martin won approval for a media ownership cap review, but caught flak from FCC Democrats because the inquiry, while wide-ranging, insufficiently addresses local broadcast obligations. In a concession to Comrs. Adelstein and Copps (CD June 21 p2), the ownership docket will include a summary of filings from a 2003 localism notice of inquiry. Even so, the 2 partially dissented.

FCC Chmn. Martin’s quest for a multicast must-carry order drew a death blow Sun. when new FCC Comr. McDowell balked at imposing the rules due to constitutional and other concerns, said sources. With no chance in 2006 for Hill action to make cable operators carry all broadcast digital channels, industry executives termed the issue dead for the foreseeable future. McDowell and his aides didn’t comment.

The FCC should seek public comment before acting on a media ownership rulemaking set for a Wed. vote (CD June 8 p13), said the American Federation of TV & Radio Artists (AFTRA). AFTRA said members, who include actors, disc jockeys and broadcast reporters, are “contacting the FCC to let them know that the public needs to be heard before any new ownership rules are enacted.” Media activists want the Commission to seek comment on individual rules, instead of only soliciting input on a broad slate of mandates remanded to the FCC by U.S. Appeals Court, Philadelphia, as Chmn. Martin has proposed. “If the Commission does not put specific proposals out for comment, it runs the risk of alienating the Court of Appeals, which roundly criticized the Powell FCC for such a failure,” said Media Access Project Pres. Andrew Schwartzman: “We'd like to be able to comment on specific proposals.” Benton Foundation Pres. Gloria Tristani agreed: “We certainly hope that the notice has provisions that provide for sufficient time for the public and interested parties to comment.” - JM

FCC Chmn. Martin’s broad media ownership proposal doesn’t address cable ownership limits remanded to the Commission in 2001 by U.S. Appeals Court, D.C., said industry sources. The item moving on the 8th floor (CD June 1 p2) likely addresses broadcast rules, including lifting a ban on newspaper and TV station cross-ownership and boosting the number of markets where a firm can own multiple stations, they said. Broadcast rules including cross ownership were sent back to the FCC by U.S. Appeals Court, Philadelphia, in 2004.

Growth of wireless broadband service could be stymied by the proposed AT&T-BellSouth merger, opponents said in FCC filings late Mon. and at a news conference Tues. In what appeared to be a growing issue, merger opponents urged the FCC to require AT&T and BellSouth to divest their 2.3 GHz and 2.5 GHz spectrum so the proposed merger won’t hurt the development of a 3rd broadband alternative.

The Senate late Thurs. unanimously passed an indecency bill (S-193) that would raise maximum fines on broadcasters from $32,500 to $325,000. The bill has been sent to the House where it will either go to conference with a measure that the House passed (HR-310) last year or be put to a vote, said a spokeswoman for Senate Majority Leader Frist (R-Tenn).

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.