FCC Seeks Wide Range of Cable, Web Details in Adelphia Data Request
The FCC issued a wide-ranging information request on the Adelphia cable transaction, seeking data on regional sports networks (RSNs), carriage accords, broadband network neutrality and regional clustering of systems. Several of the requests appear to reflect concerns expressed by rivals, suppliers and media activists that the deal may: (1) Increase RSN concentration. (2) Stifle independent and unaffiliated programmers’ efforts at carriage. (3) Result in limiting access to some Web sites. Several observers said the request was unusual in its scope. The firms must respond by Dec. 19. Time Warner will reply “in a timely manner” and “at this point we don’t expect requiring an extension,” said a spokeswoman. Time Warner and Comcast, together paying $17.6 billion for Adelphia systems, will file responses separately, she said. Adelphia and Comcast representatives didn’t immediately comment.
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“We're going to do our best to meet that timeframe,” said a person familiar with the transaction who asked not to be identified. The person said some of the information sought by the FCC is already available, which will speed the process. The submission of information on proprietary agreements that aren’t usually publicized, such as carriage deals, will probably “be subject to the existing protective order,” said the source. Comcast and Time Warner were asked to provide contracts for 11 networks, including channels owned by the 2 firms, Cablevision, Fox and Viacom. At least 3 of the networks are aimed at African Americans: BET, Black Family Channel and TV One. Other networks include AMC, CNN, Fox News and the Outdoor Channel.
The firms must explain how they decide to carry a network. “Explain… the extent to which carriage decisions are made at the corporate level and/or by individual system managers,” said the FCC document. The firms were also asked to respond to criticism from The America Channel (TAC) “that some networks seeking carriage are given so-called ‘hunting licences’ authorizing them to negotiate for carriage with system managers, whereas networks affiliated with Comcast are given carriage ‘commitments’ that do not require” such negotiations. TAC has said Adelphia reneged on a promise to carry it, telling the fledgling network that it wouldn’t air its shows until Comcast and Time Warner struck a deal (CD Nov 10 p11).
Comcast must provide all documents on decisions to carry programming as VoD instead of a traditional channel. The firm was asked to detail activity related to net neutrality. “Provide all documents relating to deliberations to stop, limit, hinder, slow or otherwise impede the transmission of information over the company’s” broadband network, said the request, “based on the software application, source, destination or other characteristic of the traffic.” The FCC is seeking a response to Free Press’s claims that email from a Web site called afterdowningstreet.org was blocked.
“This is unprecedented in its level of detail and its requirement for [Comcast] to demonstrate how it arrived at the results it arrived at,” said Harold Feld, senior vp- Media Access Project, which has recommended the FCC impose conditions on the merger, including network neutrality and giving small programmers a better chance of striking carriage deals. “I'm just sort of amazed at the granularity, the demand for a sufficient number of data points in each of these categories to ensure that they are seeing trends,” said Feld: “I cannot imagine the applicants taking less than a month to assemble this.”
A policy and financial analyst disagreed with Feld, saying he thinks most information requested by the Commission is already available. “If they're diligent in their preparations, most of this stuff they'll have prepared,” said Precursor CEO Scott Cleland. “It’s still a monumental pain in the neck, but that’s the cost of doing business.” He said the FCC’s job is “to ask for everything but the kitchen sink.” Observers who spoke with us all agreed the FCC is now making the Adelphia merger a top priority. With the AT&T and MCI deals approved, Chmn. Martin has said the Commission would focus on Adelphia (CD Nov 4 p15).