Action on Standard General’s proposed buy of Tegna isn’t expected soon, and recent concessions by Standard founder Soohyung Kim aren’t moving deal opponents, said industry attorneys and groups. “The reality is that the proposed investment increases the parties’ incentive and ability to collude in ways unaddressed by Standard General’s offer," said the American Television Alliance in a release Monday. Standard’s deal for Tegna was filed in February 2022, and the arrangement is now under the effects of a “ticking fee” clause in the merger agreement, which raises the price the longer the deal isn’t approved by regulators (see 2210280062). The “purchase price is increasing every day,” said Kim in a statement Friday.
FCC commissioners and panelists at the Practising Law Institute’s Institute on Telecommunications Policy & Regulation Thursday outlined expectations for 2023 involving employment data collection, enforcement and the USF, but many speakers were focused on cyber and national security, such as compromised apps and obsolete devices. “It’s time to turn our attention to the millions of wireless devices in our country that are insecure,” said Commissioner Nathan Simington. “There’s an industry-wide acquiescence to careless practices.”
Broadcasters tout ATSC 3.0’s capabilities for disseminating detailed emergency information, but it’s not clear what form the standard’s advanced emergency information offerings will take and who will provide it, said participants at an Advanced Warning and Response Network Alliance roundtable event at NAB’s headquarters Wednesday. AWARN’s roundtables are intended to help determine what advanced emergency alerting is, said AWARN Executive Director John Lawson, who's also the president of ATSC 3.0 alerting firm America’s Emergency Network.
The FCC should go after insurance companies that buy sales leads from robocallers and users of spoofed numbers, said communications attorney Arthur Belendiuk, of Smithwick and Belendiuk, in a complaint filed on his own behalf Monday in docket 20-195. “Starting as early as 8 a.m. and continuing into the evening hours, Complainant is barraged with a steady stream of unwanted telephone calls on both his mobile telephone and office telephone number, seven days a week,” said Belendiuk. The FCC “has the statutory authority to eliminate this scourge on American consumers,” said the complaint, comparing robocalls to “a plague of locusts” and calling for a forfeiture of $500 million for each company involved.
MVPD and telecom groups don’t agree with broadcasters on the practicality of revamping the FCC’s regulatory fee system, said reply comments filed in docket 22-301. NAB, a group of 57 smaller broadcasters and nearly all state broadcast associations filed replies in support of proposals from NAB and the Satellite Industry Association to rethink how the FCC parcels out the fees, but the Wireless ISP Association, NCTA and CTIA panned the idea. “The proposals of NAB and SIA are self-serving, impracticable, and would be unmanageable,” said NCTA.
An NAB request for the FCC to refresh the record on the state of the streaming industry could get some traction at the agency, but reviving the long-dormant proceeding on reclassifying streaming services as MVPDs and generating the same retransmission consent dollars that now come from cable companies would likely be a much heavier lift, said broadcasters and network executives. “You don’t need a commission vote to refresh the record,” said former FCC Commissioner Robert McDowell, now a partner at Cooley, which represents broadcast affiliate groups and broadcasters such as Gray Television. The big four TV networks aren’t interested in refreshing the record and believe the current system of compensating affiliates for streaming rights works, a network executive told us.
A draft order on updating references in FCC rules to Nielsen publications is expected to be approved with few changes at the agency’s Nov. 17 meeting, FCC and industry officials told us. Though the NPRM that preceded the order led to calls from Commissioner Nathan Simington and broadcasters for the FCC to scrutinize its relationship to the ratings company, the draft order says it's “premature to initiate a proceeding at this time” on the matter: “There is currently no apparent alternative data source for the Commission to rely upon.”
Low-power TV and TV translator virtual channel assignments and changes should be limited to avoid conflicts and confused viewers, said NAB, the Society of Broadcast Engineers and others in comments posted this week in docket 03-185. Allowing translating stations to change their program and system information protocol (PSIP) “carries a very real risk of causing viewers to think that the translator or LPTV station is the originator of the programming, when that is not the case,” said SBE. Broadcasters in the docket also discussed apparent errors in a proposed FCC method for calculating station coordinates, and restrictions on low-power television relocation.
Some broadcasters are seeing lower than expected political advertising and possible continued shortages in the auto industry, plus are certain how an economic downturn will affect their businesses, executives from iHeartMedia, Gray Television and Sinclair Broadcast said on Q3 earnings calls this week. “We are truly disappointed that several unexpected factors will keep us from hitting our previous guidance” on political advertising for 2022, said Gray co-CEO Hilton Howell, noting the results for Q3 are still up 30% from political ad results for Q3 2018, the last midterm election year.
Unions opposing the Standard General/Tegna deal said Friday the companies' recent document submissions to the Media Bureau show Standard hasn’t been truthful with the FCC about its intention to cut jobs at Tegna, but the buyer said the groups are just rehashing their previous arguments. According to the acquisition agreement, there’s about a month left before -- if the purchase hasn’t been approved -- a “ticking fee” takes effect that will raise the cost per share of Tegna at a rate that increases the longer the deal lingers. The FCC has traditionally sought to avoid being the cause of triggering such provisions, broadcast attorneys told us. Responses from Standard and the other parties to Thursday’s supplementary filings from the unions are due Thursday.