Martin’s Limited FCC Multicasting Plan Adds Momentum

The multicast rulemaking is considerably newer. The NPRM may have begun circulating late Fri., and, if not, will reach the 8th floor early this week, Martin said. He wants independent programmers to get must-carry status on cable systems by leasing TV stations’ multicast streams. At another industry event Feb. 28, Comr. Tate was the 1st commissioner besides Martin to voice public support for the proposal. Both Martin and Tate have framed the must-carry item as a way to boost media diversity by giving minorities, women and small businesses a way to get widespread pay-TV carriage by piggybacking on TV signals.

Multicast status would come with public interest rules. Third-party multicasters might have to follow many of the same rules TV stations face, Martin said. Mandates include airing at least 3 hours weekly of educational kids’ programming, he said: “We need to clarify how our rules work if we do this… I'm looking forward to opening a dialogue with my fellow Commissioners on this.” The agency could set eligibility for must-carry status by subjecting prospective programmers to criteria like those used to assign auction credits, Martin said. The chairman cited what he called a scarcity of new broadcast licenses as a reason for such a system. “There aren’t a lot of new channels available,” he said, calling it a “significant” opportunity for “leasing the capacity of stations that are already there.”

A Jan. deal for LATV to get multicast carriage (CD Jan 29 p2) on Post-Newsweek stations exemplifies how start-ups could benefit from limited must-carry rules, said Martin. He asked other broadcasters to embrace such deals. “It’s incumbent on broadcasters to seize this chance,” he said: “I am going to encourage them to do that.” Some independent programmers said Fri. said they may benefit. “There is no question that this kind of proposal can increase diversity of information and diversity of ownership,” said the Assn. of Independent Programming Networks, which includes America Channel, Black TV News, ImaginAsian and Mid-Atlantic Sports Network.

McDowell voiced limited support for Martin’s revamped must-carry rulemaking during the conference. “What the chairman has outlined sounds like a terrific idea,” he told the broadcaster event. “The more platforms we can have out there, I think is going to be very helpful,” he said. The plan is far less sweeping than an earlier one by Martin to give all broadcasters the right to get pay-TV carriage for digital streams. That proposal died when McDowell decided not to endorse it out of concern it would overstep the agency’s Congressional authority. This time, the Commission again must be sure any multicast action is “authorized by statute,” McDowell told reporters: “At first blush, as [Martin] described it, it sounds intriguing.”

At first glance, Adelstein said he finds Martin’s idea “very intriguing.” Leased spectrum, expanded availability of low-power FM licenses and other moves for media diversity “are all worth pursuing,” he said: “I'm particularly concerned about the low percentage of women and minority- owned stations.” If he chaired the FCC, Adelstein would make it a priority to act on a languishing public interest NPRM for DTV, he said when questioned by moderator and ex-Comr. Henry Rivera. Adelstein restated his skepticism that relaxing media ownership rules will bring more local programming, including news. He and McDowell agreed that increased oversight by the Democrat-led Congress may prompt more Commission rulemakings. “If it makes us more productive, that’s only a good thing,” said McDowell. Adelstein noted that whenever a Hill hearing is imminent, the FCC has issued myriad orders and waivers that don’t need votes. “We do see a raft of material coming out of the FCC… The Daily Digest was the longest I think I've ever seen” before a Feb. Senate Commerce Committee hearing, he said.

Martin stressed he has no preconceived notions about the media ownership review, again declaring the Commission is on track to hold hearings every other month or so. The next ownership field hearing probably will be in April, he said. Martin acknowledged the 1996 Telecom Act led to consolidation in radio and other media that “was too dramatic… There’s concern there was too big a change” due to the Act. “That’s something that we will obviously take into account” in the current review, he told the conference: “We need to create more opportunities for different, new and independent voices to be heard.” Martin stressed the review will incorporate public input; during his tenure, Michael Powell drew fire for rushing through rules later remanded to the FCC by 3rd U.S. Appeals Court, Philadelphia. “The Commission will be open and transparent,” Martin said, using a phrase he repeated several times.

Another rule under FCC review -- a program exclusivity ban about to expire -- helped Bells enter the pay-TV business, Martin told us. The ban blocks cable operators from withholding affiliated channels. Verizon has said such rules helped it get content for its FiOS fiber TV service. But it’s unclear whether the exclusivity ban still is needed, Martin indicated. The agency seeks comment on that question, he said: “The program access restrictions were helpful to get new entrants into the video space” and “did serve an important purpose.” Comcast and other cable officials have said the ban may be unfair because DBS providers still can carry exclusive networks (see related report this issue).

Martin and McDowell stumped for quick votes on several telecom rules. The chairman asked colleagues to be ready to act on the CPNI and wireless broadband rulemakings, which could get a vote on circulation or at the March 22 agenda meeting. “If they were not voted on prior to the meeting,” Martin may place them on the next agenda, he said. The CPNI order has circulated since as early as Dec. and the wireless broadband item for more than a month, he added. Martin has said CPNI rules may limit sharing of data among carriers and partners. Industry sources expect the wireless broadband ruling to reclassify the service as a Title I information service, a classification already applied to cable modem and DSL products.

McDowell wants a quick vote on rules for the upcoming 700 MHz auction, he told reporters. A vote at this month’s agenda meeting doesn’t seem likely, but McDowell hopes for one next month, he said: “I'm keeping my fingers crossed.” He also indicated support for creating 4 sizes of geographic auction block -- very small, small, medium and large telling the conference that approach may help smaller companies bid for spectrum. - Jonathan Make