INDUSTRY RECORDKEEPING SUGGESTED FOR INDECENCY COMPLAINTS

Keeping records makes sense because “you will get nailed” by enforcement actions if there are complaints, Abernathy said, and keeping records probably will save stations time and effort in long run. However, she said: “I have concerns about mandatory taping where the only reason is to monitor your speech.”

Copps repeated his belief that FCC wasn’t doing enough to enforce indecency laws and was making it too difficult for public to document complaints: “If something is going out over the airwaves it should be a matter of public record.” He said broadcasters must understand that “this is a problem that exercises the public” and there should be public-private partnership to solve it.

FCC must keep in mind that increasing “diversity of voices” is undermining its authority to impose any new regulation, Comr. Martin said in discussion on indecency. He said he believed broadcasters already had “a big incentive to be responsible” and FCC could encourage that by making broadcasters more aware of complaints.

Addressing issue that has begun to emerge as key for radio broadcasters, FCC commissioners here Fri. predicted quick decision on terrestrial repeaters for satellite radio systems. Broadcasters fear that repeaters could themselves become direct, 100-channel terrestrial competitor for radio stations, particularly if they're allowed to originate local programming rather than just relaying national satellite programming. Abernathy repeatedly cited fact that satellite radio service rules were proposed 4 years ago and industry deserves quick decision. It’s taken such a long time for FCC to produce rules that companies were basing business plans on what they anticipated rules would be, she said, and that actually could make it more difficult for FCC to complete process.

It’s clear that some terrestrial repeaters may be necessary for satellite radio, Martin said. He indicated FCC might grant special temporary authority for some repeaters, but said it was important that Commission remember “this is a satellite service, not terrestrial. I think that distinction has to be maintained.”

NAB Pres. Edward Fritts later questioned whether satellite radio was “a national satellite service, or is this really a terrestrial-based system of transmitters with a satellite supplement?” He said FCC originally authorized satellite radio “to serve different consumer interests” than broadcast radio, and repeaters were to be used only where satellite signal couldn’t reach. However, XM and Sirius satellite networks “have the potential to operate totally divorced from the satellite transmission systems,” including inserting local ads, Fritts said in his state of industry address Fri. afternoon: “Our satellite friends must not be allowed to change the rules of the game in midstream. Locally originating programming and ad insertions must not be permitted on satellite radio. Period.”

Issue also is of concern to wireless telecom providers because of what they called “brute force interference” in comments filed with FCC. Because terrestrial repeaters would be located on or near cellular towers, interference could result even though services aren’t on same frequency, they said.

Commissioners also called for industry action on EEO issues, with Copps again warning of “draconian solution” if industry didn’t act. He said industry already was “doing a lot of things” to increase minority role in broadcasting, but “you need to PR them -- tell us, tell the world.” Martin said current EEO rules were “probably adequate,” but there was opportunity for broadcasters to do more. He said FCC needed to distinguish between real out-reach efforts and “recordkeeping,” saying “no one wants to impose more recordkeeping.”

On other issues: (1) Abernathy said FCC should “just do it” on speeding decisionmaking. She said there was tendency to “look for the perfect decision,” but said even “bad” decision that gave certainty could be better than none, especially since it could be improved on reconsideration. (2) Copps, referring to “exciting” possibility of digital radio, said he hoped FCC would “learn some lessons” from DTV transition, including settling supply and demand questions before setting deadlines. Abernathy said it was “unlikely” new spectrum would be available for digital audio broadcasting, but said she was “very optimistic” about digital. (3) Martin said FCC must consider economic impact of low-power FM (LPFM) on existing broadcasters: “We need to be cautious.” Abernathy said interference review for LPFM was “going to be expensive and long-term,” but she said protecting against interference “goes to the core of our responsibility.” (4) Martin said FCC in general needed “more appreciation” for potential of interference caused by new industries. -- Michael Feazel

Radio Show Notebook…

Radio is “only one amendment away” from being included in campaign finance reform legislation that currently only targets TV, NAB Pres. Edward Fritts told show attendees Fri. He said campaign reform, which includes what he called “ridiculously unfair” ad rate provision that “punishes broadcasters,” is “now at full boil” in Washington. Fritts said legislation could force broadcasters to discount ad rates for politicians by as much as 90%.

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Attendance at NAB Radio Show fell sharply, as expected. NAB announced attendance as 5,227, though that was expected to increase slightly Fri. Figure is down more than 2,000 from previous year, when convention in San Francisco attracted large Silicon Valley contingent. Officials attributed much of drop to economy and to dot-bomb.

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New Radio Ad Effectiveness Lab is to get its formal start Sept. 11, when first board meeting is set for N.Y.C., Radio Ad Bureau (RAB) Pres. Gary Fries said. Lab is to sponsor research, mostly done by outside contractors, aimed at convincing advertisers of effectiveness of radio ads. It has funding from Arbitron and 7 radio and advertiser groups and is being established as separate entity from RAB and Arbitron, with its own board. Lab staff will be part-time consultant at first, though more staffers may be added. First project, review of other advertising effectiveness research, is to be completed in Aug., with first original research to be done by Feb., said Owen Charlebois of Arbitron.

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Digital audio broadcasting firm iBiquity made several announcements at convention, including: (1) Philips Semiconductors will market ASIC chip for iBiquity in-band-on- channel (IBOC) system. (2) Broadcast Electronics Inc. and Nautel will license iBiquity technology for their transmitters and exciters. (3) CEO Robert Strubl, in keynote speech here, said consumer electronics marketer Crutchfield will market IBOC receivers. (4) TOKO Inc. will develop IBOC-capable tuner modules for digital radios.