The FCC proposed a total $1.2 million forfeiture for Nexstar and a $612,395 forfeiture for Mission Broadcasting (see 2403210078).
The American Consumer Institute Center for Citizen Research (ACI) urged the FCC against reclassifying broadband as a Communications Act Title II telecom service. Reclassification would "lead to a decline in consumer welfare" due to the "increased tax exposure" ISPs will face at the state and local level, the group said in a letter posted Friday in docket 23-320 (see 2403210026). ACI also noted that some states "consider intangible property to be taxable property" and "the taxation of broader telecommunications property could represent a major increase in the property taxes assessed on licensed spectrum." The impact will be "significant," ACI said, noting broadband services "are not highly inelastic."
The ABC, CBS, NBC and Fox affiliates associations seek leave to intervene in support of the four petitions for review consolidated in the 8th U.S. Circuit Court of Appeals that challenge the FCC’s Dec. 26 quadrennial review order for allegedly violating Section 202(h) of the Telecommunications Act (see 2403050075), said their unopposed joint motion Friday.
A combined $1.8 million proposed forfeiture for Nexstar and sidecar operation Mission broadcasting over Mission’s station WPIX New York will likely create uncertainty about similar arrangements that other broadcasters use, though attorneys and the FCC say Thursday’s notice of apparent liability is narrowly targeted. “We stress that the decision we reach today is limited to the facts before us and the relationship between Nexstar, Mission, and WPIX,” said the NAL. On the other hand, “If you’re a broadcaster with a sidecar, you’re saying ‘uh oh,’” said Holland & Knight attorney Charles Naftalin. Nexstar said it will dispute the enforcement action “vigorously.”
State enforcers of net neutrality report no legal actions against ISPs more than five years after the laws took effect. A Communications Daily public records request showed that Washington state’s attorney general's office received 21 complaints related to net neutrality since enacting its first law in March 2018, but most were resolved informally. Half the states with such laws told us they hadn’t received complaints.
Sen. Steve Daines, R-Mont., led filing of the Supporting National Security with Spectrum Act Friday as an alternative vehicle for allocating an additional $3.08 billion for the FCC’s Secure and Trusted Communications Networks Reimbursement Program after congressional leaders didn't agree to include the funding in the Further Consolidated Appropriations Act FY 2024 minibus spending bill (see 2403210067). Congress inched closer Friday to passing the minibus, which also didn't include stopgap funding for the FCC's ailing affordable connectivity program despite a strong push by the initiative's backers (see 2402210073).
The full FCC -- with Commissioner Brendan Carr concurring in part -- proposed a $612,395 forfeiture against Nexstar for violating the 39% national ownership cap and taking de facto control of Mission Broadcast’s WPIX New York station without agency permission, said a notice of apparent liability issued late Thursday. The NAL also proposes requiring Mission within 12 months to either divest WPIX to a third party or apply to the FCC to sell it to Nexstar, which in turn would have to divest stations to come in under the national cap. The FCC “is prohibited from allowing a company to own or control broadcast stations that in total reach more than 39 percent of the national television audience,” said Chairwoman Jessica Rosenworcel in a brief statement released with the NAL. “The record here reflects a situation where a company exceeds this threshold. Unless and until Congress changes this law, it is the responsibility of this agency to enforce it.” Nexstar is a client of Wiley, Commissioner Anna Gomez's former law firm. Late last month, she received an ethics waiver that allows her to vote on enforcement items involving Wiley clients (see 2403150055). Nexstar’s relationship with Mission and WPIX was the focus of multiple court and FCC proceedings (see 2402130023), one of which was recently decided in Nexstar’s favor (see 2403210027). “NALs are not final decisions on the merits,” said Carr’s concurrence, in which he objected to the NAL citing aspects of Nexstar's relationship with Mission, which past FCCs approved, as part of the company's violations. “And I will keep an open mind as the FCC reviews the record in response to this document. Part of that will require the FCC to ensure that any remedies the agency finds necessary are ones that are appropriate given the procedural posture of this enforcement action.” Nexstar is “extremely disappointed in today’s action by the Federal Communication Commission regarding our relationship with WPIX-TV and we intend to dispute it vigorously,” said CEO Perry Sook in a release. “We believe the FCC has been misled by the often distracting noise in the media ecosphere and that it has completely misjudged the facts.”
A new study by the Phoenix Center found "no material change" in broadband availability under the FCC's updated 100/20 Mbps speed threshold. The study, released Thursday, estimated a decrease of "no more than about 3%" in availability. In addition, it found that providers were most likely to be affected, with an estimated 11% decrease in the number of fixed providers that can meet the new threshold. Availability rates would remain "somewhat stable, as cable and fiber are widely deployed and easily meet the new 100/20 Mbps threshold in nearly all cases," the study said.
Maine lawmakers passed a telemarketing bill this week that would require telephone solicitors, before calling a consumer, to use the FCC’s reassigned numbers database to verify that the consumer’s number wasn't reassigned. The House passed LD-2234 Tuesday and the Senate did so Wednesday. Gov. Chris Sununu (R) will next consider the measure.
The FCC confirmed Thursday it’s investigating Amazon and other online retailers for allegedly selling wireless signal jammers in violation of FCC rules. “We have several ongoing investigations into retailers, including Amazon, for potential violations of Commission rules related to the marketing and sale of equipment without proper FCC authorization,” an FCC spokesperson emailed. The FCC has long policed signal jammers. In one of the most high-profile cases, in 2016, the agency fined C.T.S. Technology of China $34.9 million for allegedly marketing 285 models of signal jamming devices to U.S. consumers (see 1605250071).