Although it isn't unusual for administrative agencies to reverse themselves, FCC flip-flopping on Latina Broadcasters' inclusion in the incentive auction may be extreme, attorneys and an administrative law expert told us. Though courts tend not to be sympathetic to arguments an agency didn't provide enough notice of a change in policy, the U.S. Court of Appeals for the D.C. Circuit may feel the radical shift on Latina “doesn't pass the smell test,” said George Washington University administrative law professor Richard Pierce in an interview. The FCC repeatedly telling Latina it's included in the auction and then excluding it with so little time before the March 29 start (see 1603070057) is likely to look bad for the commission and increase D.C. Circuit scrutiny of the FCC's actions, Pierce said. A rapid shift in policy often can indicate some “questionable” administrative procedure is being used, he said.
Federal judges blocked new FCC inmate calling service rate caps and one other set of fee restrictions, pending further judicial review, while leaving untouched the rest of the commission’s 2015 ICS order. In a short order Monday, a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit partially granted ICS provider motions, issuing a stay of rules capping interstate and intrastate ICS rates at between 11 cents and 22 cents per minute, and of a rule capping ancillary fees for single-call and related services, but denied the stay requests in all other respects in the consolidated case Global Tel*Link v. FCC, No. 15-1461. It also denied a separate motion of Oklahoma state officials seeking a stay.
Broadband providers and consumer advocates jointly backed modernizing Lifeline USF support for low-income subscribers. Almost two dozen major telcos, cable companies, consumer groups and public-interest organizations signed a letter to commissioners Tuesday saying it was time to use Lifeline subsidies to make broadband more affordable for low-income persons and change the way the program is administered regarding consumer eligibility verification and industry participation. An informed source said the FCC continues to target its March 31 meeting for adopting a Lifeline order, as expected (see 1602180055).
Broadband providers and consumer advocates jointly backed modernizing Lifeline USF support for low-income subscribers. Almost two dozen major telcos, cable companies, consumer groups and public-interest organizations signed a letter to commissioners Tuesday saying it was time to use Lifeline subsidies to make broadband more affordable for low-income persons and change the way the program is administered regarding consumer eligibility verification and industry participation. An informed source said the FCC continues to target its March 31 meeting for adopting a Lifeline order, as expected (see 1602180055).
Broadcasters have concerns about and may soon begin a lobbying push in Congress and at the FCC over the commission's policy on broadcast transactions that contain joint sales agreements, broadcast attorneys and industry officials told us. The FCC needs to fall in line with the congressional adjustments to the JSA attribution rules, some broadcast attorneys told us. In a provision of the FY 2016 omnibus appropriations law, the deadline to unwind existing JSAs was moved from June 2016 to Oct. 1, 2025 (see 1512210050). The deadline also was raised by some on Capitol Hill, who mentioned concern the commission is trying to get around the JSA law change (see 1602230070).
The death of Supreme Court Justice Antonin Scalia could slow the timeline and alter the outcome of litigation over the FCC net neutrality and Communications Act Title II broadband reclassification order, industry observers told us Tuesday. Some said there are many unknowns, including about who will replace him on the court and when. Scalia was remembered as a justice who deferred to the commission’s judgment on some other key cases and had a long, deep interest in communications policy.
The death of Supreme Court Justice Antonin Scalia could slow the timeline and alter the outcome of litigation over the FCC net neutrality and Communications Act Title II broadband reclassification order, industry observers told us Tuesday. Some said there are many unknowns, including about who will replace him on the court and when. Scalia was remembered as a justice who deferred to the commission’s judgment on some other key cases and had a long, deep interest in communications policy.
Nexstar’s proposed $4.6 billion buy of Media General is seen as likely to get FCC approval, though some details of the transaction remain unclear, communications attorneys and analysts told us. Though Nexstar has indicated it plans to divest stations in overlapping markets or sell their spectrum to get regulatory approval, CEO Perry Sook said on an investor call the specifics were still in motion. Along with specific divestitures, there are questions about how long the transaction (see 1601270040) will take to be approved, with the incentive auction just around the corner. Broadcasters are under pressure to expand to match with their growing and numerous competitors, making this deal “not surprising,” said BIA/Kelsey Chief Economist Mark Fratrik.
The FCC denied inmate calling service provider requests that it stay an order restricting domestic ICS charges (see 1510220059). Global Tel*Link, Securus Technologies and Telmate had asked for an FCC stay pending judicial review of the order on its merits at the U.S. Court of Appeals for the D.C. Circuit. “The Petitioners have failed to meet the test for extraordinary equitable relief,” said Wireline Bureau Chief Matt DelNero in a 40-page order defending the commission’s actions. DelNero said the FCC is likely to prevail in court on the merits because its rate caps, ancillary fee restrictions and other measures are lawful. He also said the petitioners wouldn't suffer irreparable injury without a stay while others and the public interest would be harmed by a stay. "I don't think I have ever seen an FCC stay order which is as comprehensive and thoroughly considered as this one," said Andrew Schwartzman, senior counselor at the Georgetown Institute for Public Representation, in an email Friday. "The decision is a strong defense of the Commission's action. In addition, it does a very good job of explaining why the necessary analysis of irreparable harm weighs in favor of leaving the status quo intact." The FCC denial had been expected by some ICS provider critics (see 1512300041), including Schwartzman who recently said, “They are just getting their ticket punched so they can seek a judicial stay” (see 1512230034). “Securus will move for a stay at the D.C. Circuit,” confirmed Stephanie Joyce, an Arent Fox attorney who's counsel for Securus. GTL and Telmate didn't comment Friday. Both had said that if the FCC didn't grant them a stay, they would seek relief in the D.C. Circuit, where two of the underlying legal challenges have already been consolidated (see 1601140068). Schwartzman said in his email Friday that "the usual caveats apply" to making a prediction on court action: "One never knows, especially since one doesn't know who will be on the panel. Etc."
The FCC changed the way it issues FCC registration numbers (FRNs) and requirements for Form 323-E, it said in an order released Wednesday. The commission will now issue special restricted use FRNs (RUFRNs) within the commission’s registration system (CORES) that are to be used solely for filing broadcast ownership reports, the order said: “The Commission believes that the RUFRN will allow for sufficient unique identification of individuals listed on broadcast ownership reports without necessitating the disclosure to the Commission of individuals’ full Social Security Numbers.” The order also extends the biennial filing deadline, reduces the number of filings required and improves the reporting of other broadcast and newspaper interests.