The FCC's proposal that cable operators' in-kind contributions be treated as franchise fees and count against the statutory cap will lead to more infrastructure investment by both incumbents and new entrants, Phoenix Center said Wednesday. Those in-kind contribution extractions mean reduced revenue or increased costs of an investment project, reducing incentives to invest, it said. Localities have been critical of the in-kind contributions Further NPRM (see 1811150027 and 1811280048).
MVPDs are urging the FCC to allow use of texting or apps as a way to send some required notices to consumers, in docket 17-317 comments posted Tuesday. Verizon said the agency should also look at allowing communications via TV screens, maybe using the Fios TV interface. NCTA urged apps and text messaging. The FCC's November adoption of an order allowing cable operators to send notices to customers via email instead of through the post (see 1811150028) included a Further NPRM about electronic alternatives for subpart T and privacy notices.
The "shapefiles" approach to broadband mapping has advantages over requiring providers submit customer locations to an FCC database or a third party, since it wouldn't see people who have opted not to get broadband labeled as unserved, Charter Communications blogged Tuesday. It said using address-level data would miss rural areas that don't have traditional street addresses, and requiring providers submit customer addresses to a third party or the FCC risks the unauthorized disclosure of sensitive consumer information. The cable industry is pushing shapefiles, which are electronic maps showing actual service area contours (see 1903220036).
An FCC enforcement advisory warns that TV set-top boxes, including those that stream internet content, must comply with equipment authorization requirements. Such devices must not be marketed in the U.S. without “FCC-required labeling and user manual disclosures,” said the public notice in Tuesday’s Daily Digest. Penalties could total more than $147,000 per violation, said the PN. The advisory notes that under Section 302 of the Communications Act and Part 2 and Part 15 rules, set-tops must be properly authorized by the FCC before being imported, advertised, sold or operated. It said devices must display an FCC ID of letters, numbers and symbols “unique to the device” and user manuals must warn consumers of the device’s potential for causing interference. Commissioner Mike O’Rielly applauded the advisory, tweeting, “Fake boxes & certifications are illegal!”
Redbox is deploying TiVo’s content delivery platform on its Redbox.com, Redbox On Demand streaming apps and physical boxes nationwide, it said Monday. The platform includes search, recommendations and insights to help Redbox customers find personalized content. Redbox will also enable TiVo’s video and videogame metadata, including access to its library of enhanced entertainment metadata and high-resolution imagery to facilitate content discovery.
The cable industry is floating a proposed methodology for establishing fair-market valuations of cable-related in-kind contributions. A docket 05-311 posting Friday on a meeting with FCC Media Bureau Chief Michelle Carey and Office of General Counsel staff said the three-step process would begin with cable operators identifying the fair market value of in-kind contributions based on existing market metrics, followed by local franchising authorities having some period such as 60 to 90 days to decide whether they want to keep, reduce or forego their in-kind contributions and notify the MVPD. Step three would be the cable operator implementing the LFA's election. The cablers said if an authority doesn't give notice of its election within the time frame, the operator would cut franchise fee payments based on its valuation information until it gets election notice. They anticipated few disputes over fair market value because of the numerous alternatives for most cable-related in-kind contributions. The cablers said the FCC should make clear that disagreeing with the value of an in-kind contribution isn't a valid reason for a franchise authority to delay or deny a new or renewed franchise agreement. Representatives of NCTA, Comcast, Charter Communications and Cox attended the meeting.
Roku added HBO to its premium subscription offering, and Cinemax will follow soon, it said Thursday. Users of The Roku Channel can trial HBO for free for seven days; after the trial, subscriptions are $14.99 a month. It promoted its “one-click” signup process in the My Account section on the Roku website. Premium subscriptions are only viewable within the Roku channel, it said.
Telemundo, NBC and NBCUniversal's cable networks were to have gone dark Thursday night on Liberty Cablevision of Puerto Rico's system after Liberty's Latin America board rejected a carriage agreement its management team in Puerto Rico had accepted, NBCU said Thursday. It said it's "sensitive to challenges on the island and proposed terms and prices that recognized the difficult situation in Puerto Rico." NBCU also set up a website urging tweets about and emails to Liberty. Liberty didn't comment.
Arris is now part of CommScope, with the telecom equipment provider announcing Thursday it closed on its $7.4 billion purchase of the consumer tech company. The deal was announced in November (see 1811080051). CommScope said the closing lets it provide more end-to-end communications solutions that neither it nor Arris could previously achieve independently.
Local government officials met FCC Chairman Ajit Pai, Media Bureau staffers and aides to the regular commissioners about the benefits of public, educational and government programming and to tackle what they said was "flawed" NCTA analyses, according to a docket 05-311 posting Thursday. They said congressional intent was clear that nonmonetary payments aren't franchise fees and the FCC must assess what effect saying that in-kind contributions count as franchise fees, credited against the statutory cap, would have on existing franchises. They also said it's not relevant whether PEG channels are operational or capital costs and ultimately they're voluntary commitments and not impositions. At the meeting were representatives of the Association of Washington Cities, Washington State Association of Counties, Colorado Communications and Utility Alliance, Washington localities of Thurston County and Everett, Kent, Lacey, Olympia, Seattle and Tumwater, and the Rainier Communications Commission. NCTA didn't comment.