It “seems unlikely” the FCC’s role in media transactions will be limited “in the foreseeable future,” said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman in a blog post Monday about how such deals are regulated. “Industries within the FCC’s jurisdiction and their Congressional supporters frequently object to the fact that they are subject to two different enforcement schemes,” said Schwartzman, referring to review of such deals by both the FCC and either the Justice Department or the FTC. Though industry groups argue the current review process is too burdensome, that review is merited “given the important impact of these companies on the diversity of voices in the media, the pace of broadband deployment and the evolution of digital technologies,” Schwartzman said.
It “seems unlikely” the FCC’s role in media transactions will be limited “in the foreseeable future,” said Georgetown Law Institute for Public Representation Senior Counselor Andrew Schwartzman in a blog post Monday about how such deals are regulated. “Industries within the FCC’s jurisdiction and their Congressional supporters frequently object to the fact that they are subject to two different enforcement schemes,” said Schwartzman, referring to review of such deals by both the FCC and either the Justice Department or the FTC. Though industry groups argue the current review process is too burdensome, that review is merited “given the important impact of these companies on the diversity of voices in the media, the pace of broadband deployment and the evolution of digital technologies,” Schwartzman said.
Global Tel*Link took some heat after apparently collaborating with Virginia to cut inmate calling service rates well below recent FCC rate caps that the ICS company is legally challenging. The Human Rights Defense Center (HRDC) called FCC attention to GTL comments about partnering with Virginia in lowering ICS rates to four cents per minute, given ICS provider arguments that the FCC's rate caps of 11 to 22 cents per minute were set below their costs (see 1510220059). “The key thing is they’re signing a contract for 4 cents per minute, when they’re arguing to the FCC, and about to argue in court, that the FCC’s rate caps of 11 cents a minute and higher make it financially impossible for them to make a profit -- which is a lie,” HRDC Executive Director Paul Wright told us Monday.
Initial comments are due Jan. 19 and replies Feb. 1 on the FCC's Further NPRM on inmate calling services (ICS), said a Wireline Bureau public notice Tuesday in docket 12-375. The commission is seeking comment "on promoting additional competition in the ICS marketplace, new technologies being used to deliver inmate communications, the collection of additional data, contract filing requirements, third-party transaction fees, and international calling." The PN also noted the effective dates for rules in an ICS order that also was approved in October (see 1510220059): prohibitions against entering into new contracts, or negotiating amendments to existing contracts, prior to the order's effective date, took effect Dec. 18; rate caps and fee restrictions will become effective March 17, other than those for jails, which will become effective on June 20; rules and requirements regarding Paperwork Reduction Act burdens will take effect upon Federal Register publication of an Office of Management and Budget approval notice; and all other requirements of the order take effect Jan. 19. Global Tel*Link Tuesday asked the FCC to stay the effectiveness of the rate caps in the order, pending further judicial review (see 1512220055). "They are just getting their ticket punched so they can seek a judicial stay," Andrew Schwartzman, senior counselor at the Georgetown Institute for Public Representation, told us Wednesday.
Richard Wiley, former FCC chairman and founder of Wiley Rein, is stepping down as chairman of the firm effective Jan. 1, Wiley Rein said Wednesday. Wiley is retiring from the firm’s executive committee, but will continue at the firm as chairman emeritus. Wiley has also headed the firm’s 80-attorney communications practice. Bert Rein, a specialist in antitrust and commercial law and the firm’s co-founder, is also leaving the executive committee and will become vice chairman emeritus, the firm said. Industry lawyers said the change isn't a surprise, at least within Wiley Rein, and that a succession plan had been in the works for a long time. Wiley was at the FCC 1970-1977, rising from general counsel to commissioner to chairman. There has been an orderly transition, starting with Peter Shields being named managing partner several years ago, Andrew Schwartzman, senior counselor at the Georgetown Institute for Public Representation, told us in an email. “Dick is unquestionably the most influential member of the private communications bar and, if anything, this change gives him more time to practice law. I don't see any sign that he is slowing down.” Kathleen Kirby, co-chair of the telecom, media and technology practice, and Kimberly Melvin, partner in the insurance practice, will replace Wiley and Rein on the executive committee.
Altice's proposed takeover of Cablevision might not face much more difficulties before the FCC than its recently approved purchase of Suddenlink, merger experts told us. FCC approval "is never a sure thing," but the Cablevision acquisition is less problematic for the commissioners than a number of other mergers have been, Andrew Schwartzman, who's representing Zoom Telephonics, an interested party in the proceedings, told us.
The FCC Media Bureau will update its guidance for broadcast transactions involving sharing agreements in response to Congress' pushing back of the FCC's deadline for broadcasters to unwind attributable joint sales agreements, an FCC spokeswoman told us in an email Monday. In a provision of the FY 2016 omnibus appropriations law signed by the president Friday, the deadline to unwind existing JSAs was moved from June 2016 to Oct. 1, 2025.
FCC Chairman Tom Wheeler and the two Republican commissioners are at odds over letters the agency sent Wednesday to AT&T, Comcast and T-Mobile, seeking input on zero-rating product offerings that could have net neutrality implications. "This is not an investigation," Wheeler said Thursday during the commission's meeting. "These were 'let's get informed.' This is to help us stay informed as to what the practices are." On the contrary, Commissioner Ajit Pai said later as he and Commissioner Michael O'Rielly criticized the letters and the way they were issued: "This is an investigation. This is not simply benign."
FCC Chairman Tom Wheeler and the two Republican commissioners are at odds over letters the agency sent Wednesday to AT&T, Comcast and T-Mobile, seeking input on zero-rating product offerings that could have net neutrality implications. "This is not an investigation," Wheeler said Thursday during the commission's meeting. "These were 'let's get informed.' This is to help us stay informed as to what the practices are." On the contrary, Commissioner Ajit Pai said later as he and Commissioner Michael O'Rielly criticized the letters and the way they were issued: "This is an investigation. This is not simply benign."
FCC supporters, critics and others continue to offer different takes on Friday’s net neutrality oral argument heard by a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit (see 1512040058). The supporters believe Judge David Tatel’s focus on the Supreme Court’s 2005 Brand X ruling and the discretion it gave the FCC bodes well for the agency’s broadband reclassification under Title II of the Communications Act and its net neutrality rules. Even one critic of the order suspects Title II reclassification of wireline ISPs could be upheld. But some on all sides said the agency’s reclassification of mobile broadband was at risk, with FCC critics saying other aspects were also vulnerable. A two-part audio recording of the argument is available here (USTelecom vs. FCC, No. 15-1063).