Adelstein Nomination Prospects High

By late Thurs., the committee still hadn’t voted on Adelstein’s nomination because the hearing lacked a quorum. A McCain spokesman said the committee hoped to hold a vote Fri. off the Senate floor on Adelstein’s nomination. If it can’t, the spokesman said, McCain could try to move Adelstein and other nominees Fri. through unanimous consent.

Senate Communications Subcommittee Chmn. Burns (R- Mont.) and Sens. Lott (R-Miss.), Dorgan (D-N.D.) and Johnson (D-S.D.) all spoke in support of Adelstein during the hearing. “He’s a strong voice for rural America who works to encourage telecom advances in rural areas,” Johnson said. Dorgan criticized the White House for showing “pure partisanship” by delaying Adelstein’s nomination and McCain later said Dorgan had a good point. Lott, former Senate Majority Leader who presided over delays in Adelstein’s original nomination to the FCC, acknowledged that he was a participant in the “harassment” of Adelstein, but said Adelstein had proven himself to be a thoughtful member of the Commission and deserved to be confirmed.

Several senators had pointed questions on communications policy for Adelstein, who spent much of the hearing answering questions on broadcast decency, media ownership and the universal service fund (USF).

Media Issues

McCain told Adelstein that broadcast decency would continue to be a big issue for the FCC and that, “unpleasant as it may be,” the Commission would need to “come to some decision about standards.” McCain highlighted recent programming decisions by ABC to illustrate his points, using this week’s flap over a Monday Night Football (MNF) promo skit and the decision by some affiliates not to air Saving Private Ryan as examples. McCain said it was the “height of hypocrisy” that some ABC affiliates wouldn’t air Saving Private Ryan, but aired the controversial MNF skit that featured a suggested nude seduction of a football player.

Adelstein said he didn’t understand why some stations had concerns over Saving Private Ryan, and said ABC has aired the movie twice before without any FCC action. He said he worried that recent attention paid to FCC indecency complaints was beginning to create the “chilling effect” that caused some stations to have concerns over the World War II movie that McCain said was one of the most historically important films ever made. Adelstein said the FCC should probably spend more time trying to educate broadcasters on what the FCC would rule to be indecent.

McCain said the FCC’s enforcement regime on indecency was “not in stable condition” and that the Commission would have to continue examining where to draw the line. McCain said it would be better for the FCC to determine such rules instead of leaving it to Congress. “This issue isn’t going away,” McCain said. The Senate wasn’t likely to move indecency legislation this year that would raise FCC fines, McCain said, but he said it was very likely that similar legislation would be brought before the Committee next year. Sen. Nelson (D-Fla.) said it appeared that broadcasters had the indecency issue “upside down” when there’s hesitation to broadcast Steven Spielberg’s movie but content that’s overtly sexual like the MNF skit gets aired.

Nelson, McCain and Sen. Cantwell (D-Wash.) also raised concerns about media ownership. Adelstein said it was still unclear if the FCC would appeal the 3rd U.S. Appeals Court, Philadelphia, remand of media ownership rules to the U.S. Supreme Court. Adelstein said if the FCC reexamines ownership rules, it should do a better job of soliciting public input. Cantwell praised Adelstein for the efforts he and FCC Comr. Copps made to hold public hearings on the issue. Cantwell also raised concerns about newspaper-TV cross-ownership. Adelstein said he worried that the looser ownership rules announced by the FCC last year would eliminate some of the critical examination that the Commission should apply to media market mergers. Situations where newspapers buy TV stations that don’t do local news raised fewer concerns than those where a newspaper sought to buy a TV station with a significant news gathering operation. The public would likely be better served from a TV station that adds news content through an acquisition by a newspaper than a merger that would consolidate the news gathering enterprises of a newspaper and TV station.

Universal Service Fund

Senators also peppered Adelstein about USF issues, with Cantwell asking a series of questions about opening USF to more wireless carriers. Cantwell asked why so much USF funding was directed towards expensive wireline technology when wireless telephony and broadband would likely be a cheaper solution for many rural communities. Cantwell said some USF funding should be used on wireless technologies and said she didn’t “want to see rural communities held hostage” to high-cost wireline technology. Adelstein said USF was created to ensure universal service, not necessarily competition. However, he did say he believed wireless carriers should -- to some degree -- be part of USF grants.

Cantwell also raised concerns that state PUCs, in determining how funding should be distributed, may not be devoting enough attention to wireless. But Adelstein said most states were more likely to approve wireless carriers to be eligible telecom carriers (ETCs) for USF purposes because it’s viewed as free federal money. Adelstein added that he believed FCC and legislative policy was clear on PUCs rules for establishing ETCs and said he didn’t see a need for Congress to address the issue.

Adelstein told the Commerce Committee that the FCC should continue to encourage broadband deployment “by increasing incentives for investment and promoting competition.” Adelstein also said the FCC should continue to improve spectrum management and help ensure that the universal service fund remains on “solid footing.” McCain asked him for an assessment of the state of wireline competition. Speaking to the court-challenged triennial review order rules, Adelstein said it was important for the FCC to craft a solution that could receive a unanimous vote and help end industry uncertainty.