NO BIG BILLS, BUT CONGRESS SHOULD HAVE FULL COMMUNICATIONS PLATE

First up will be media ownership as the Senate works to pass the omnibus spending package that includes a 39% broadcast ownership cap. Rumblings from both sides of the aisle have raised doubts whether that bill will pass. Democrats have threatened a filibuster of the $820 billion spending package because of objections not only to the media ownership provisions, but also to overtime pay rules and food labeling. Several conservative groups said last week that the bill must be defeated because it would spend too much money.

Sen. Dorgan (D-N.D.) still is undecided on mounting a fight on media ownership, a spokesman said. Dorgan will discuss the issue with other Democrats today and make a decision from there, the spokesman said. Dorgan has said he’s upset with the provision for several reasons, but mostly because the original agreement by House and Senate conferees on a 35% cap was changed after backroom negotiations with the White House. He said he would push for other amendments, such as a cross-ownership ban, but dropped that and other ownership amendments after the 35% cap was agreed upon.

The bill would create a 39% broadcast ownership cap, instead of restoring the 35% cap. However, the provision would be authorizing language, rather than appropriations language, which essentially would make the cap permanent instead of requiring Congress to renew the cap next year. Under the plan, News Corp. and Viacom wouldn’t have to divest stations -- both were slightly over the lower cap. The House passed the omnibus appropriations bill last year.

The Senate has other bills on its plate that the House already has approved. E911 legislation (HR-2898, S-1250) and the spectrum relocation trust fund (HR-1320) are on the Senate calendar, although it was unclear whether arguments over both bills would be settled. Senators were working to resolve a $400 million spending difference between the House bill, which would set $100 million, and the Senate proposal of $500 million.

The spectrum relocation trust fund is being pushed hard by the wireless industry, Hill sources said, but it was unclear whether lawmakers would remove the controversial “Northpoint Amendment,” which so far has prevented the bill’s passage. The amendment, introduced by Sen. Sununu (R-N.H.), would require the FCC to give multichannel video distribution & data service (MVDDS) providers access to spectrum. The bill is widely seen as a gift to Northpoint Technology and is opposed vigorously by both House Commerce Committee Chmn. Tauzin (R-La.) and Senate Commerce Chmn. McCain (R-Ariz.) However, it wasn’t known whether the beginning of FCC auctions for MVDDS spectrum last week (CD Jan 16 p9) would sap Northpoint’s Capitol Hill support.

VoIP is expected to be a hot issue for lawmakers, as both the House and Senate have scheduled hearings that would include discussion of the Internet-based telephony. VoIP will be a topic of the House Telecom Subcommittee hearing on telephony competition on Feb. 4 at 10 a.m., Rm. 2322, Rayburn Bldg. The Senate Commerce Committee is expected to hold a hearing on VoIP before the Feb. 16 Presidents Day holiday. The Senate hearing could accompany legislation on VoIP. Sununu has said VoIP legislation in the works would prevent state PUCs from regulating the technology. A Senate source said McCain could move forward with similar legislation of his own.

Broadcast indecency is likely to be a topic of interest on the Hill, especially on the House side. While most sources said legislation wasn’t likely to be passed, there would be efforts by some members to put pressure on broadcasters for airing content they saw as indecent. Several members complained about the FCC decision not to fine stations or NBC for last Jan.’s Golden Globe awards where rock star Bono said “f**king.” After the FCC Enforcement Bureau determined the utterance not to be obscene because it was used as an adjective, family groups and members criticized the Commission. Powell said last week he would seek a reversal of the bureau’s ruling (CD Jan 15 p2). However, some members are pushing legislation. House Telecom Subcommittee Chmn. Upton (R-Mich.) introduced a bill that would give the FCC the ability to impose higher fines for indecency. Rep. Ose (R-Cal.) offered a bill specifying 8 words that couldn’t be uttered on broadcast TV. The Subcommittee has scheduled a hearing on the topic for Jan. 28, 10 a.m., Rm. 2123, Rayburn Bldg.

The Senate Commerce Committee will continue to look at cable rates. McCain is expected to call a hearing, also before Feb. 16, to examine the General Accounting Office’s Oct. report on cable rates, Senate sources said. A source said the Committee was working on getting both Cox and ESPN to testify, since they're engaged in a dispute over ESPN’s fees.

Congress must renew SHVIA before year’s end. The issue could end up incorporating some DTV issues. EchoStar Chmn. Charles Ergen said recently (CD Jan 13 p5) that SHIVA should include permission for DBS to provide DTV signals where broadcasters either hadn’t rolled out DTV or where the signal was too weak to reach all consumers in a coverage area. Senate sources said the NAB and broadcasters were likely to fight that provision, setting up a possible showdown. One source said some attention could be paid to the UHF discount for broadcasters.

The Senate Commerce Committee is likely to continue to look at radio. McCain has been a critic of radio consolidation, with Clear Channel often taking the heaviest heat. The Committee could have a hearing on low-powered FM at some point this year, a source said.

One Senate source said it wouldn’t be a tremendous surprise if senators addressed wireless 411 privacy. Sen. Schumer (D-N.Y.) has introduced S-1216 that would let wireless subscribers opt out of wireless 411 directories. While not often mentioned by policymakers, the source said Congress’s quick passage of the do-not-call list showed that could move the issue to the forefront and members might expedite the process.

The Senate must also vote on ratifying the nomination of Michael Gallagher to be head of the NTIA. He’s been in the middle of a dispute between the Commerce Dept.’s NOAA and Sen. Lott (R-Miss.) over a fishing issue. Sources said Lott placed a hold on Gallagher as retaliation against the Commerce Dept. over the dispute. The Senate also could consider FCC and CPB reauthorization.