John Eggerton

President-elect Trump Meets With FCC Commissioner Pai

President-elect Donald Trump met Jan 16 with Federal Communications Commission senior Republican commissioner Ajit Pai, according to transition and future White House spokesman Sean Spicer, who said it was the President-elect's last meeting of the day. Commissioner Pai is widely expected to be tapped as interim FCC chair when President-elect Trump becomes President Trump on Jan 20 and could be named permanent chair as well, though his fellow Republican commissioner Michael O'Rielly is also in the conversation. Trump also met with former Federal Trade Commission Republican member Joshua Wright.

AT&T's Stephenson: CNN Spinoff Doesn't Make Sense

Although AT&T and Time Warner have signaled they expect to bypass the Federal Communications Commission review of their proposed $108.7 billion merger—a review that would be triggered by the exchange of FCC licenses like those used to transmit CNN and HBO—AT&T chairman Randall Stephenson signaled a spin-off of CNN was not in the cards. "I don't know why we'd even talk about that," he said. "It doesn't seem relevant to approving a deal like this. What would be the competitive issue that you're remedying with spinning off CNN? There are not competitive issues with owning CNN." President-elect Donald Trump, who has been highly critical of CNN, has threatened to block the deal, leading some to see a spin-off as a way to ease the path to approval. But Stephenson said in the interview that he sees it as a "basic vertical merger" that will ultimately be approved.

Reactions to Rep Doyle as House Communications Subcommittee Ranking Member

Rep. Mike Doyle (D-PA) was hearing the applause around DC after he was named the new ranking member of the House Communications Subcommittee.

“Congressman Doyle has a long record of leadership and fighting to promote competition and innovation and protect consumers in communications, internet, and technology markets," said Phillip Berenbroick, senior policy counsel at Public Knowledge. "We look forward to continue working with Congressman Doyle to protect the Open Internet and consumer privacy and promote the deployment of ubiquitous and affordable broadband for all Americans. We also thank Congresswoman Anna Eshoo (D-CA) for her superlative leadership of the Communications and Technology Subcommittee, as well as Congressman Frank Pallone (D-NJ) for his support of consumer protections. We look forward to continuing to work with them both.”

“Ranking Member Doyle brings an enthusiasm and long-term commitment for broadband issues and consumer protection that will be a tremendous asset for the subcommittee," said USTelecom President Jonathan Spalter. "The USTelecom community congratulates Ranking Member Doyle and looks forward to working with him to promote policies that will encourage continued investment and innovation to help expand broadband access and adoption across the nation.”

"[Rep Doyle] has been a long time champion of competitive policies that have driven economic growth and saved consumers and small businesses money,” said said Chip Pickering CEO INCOMPAS. “Representative Doyle understands that technology issues are pocketbook issues and we look forward to working with him on efforts to promote innovation, competition, and small business growth.”

“NAB congratulates Rep. Doyle on his selection as Ranking Member of the Communications and Technology Subcommittee," said National Association of Broadcasters President Gordon Smith, a former senator. "Rep. Doyle is a strong advocate on behalf of consumers and a champion of innovation. We look forward to working with him on pro-growth policies that allow America’s broadcasters to modernize to better serve their local communities.”

Trump Team Embraces FCC Remake Blueprint

The incoming Trump Administration is said to have signed off on an approach to remaking the Federal Communications Commission offered by the FCC transition team.

The FCC would be restructured to better reflect the convergence of the digital age as a first step, and, eventually, move functions deemed "duplicative," like, say, competition and consumer protection, to other agencies, particularly the Federal Trade Commission. Jeff Eisenach and Rosyln Layton have argued that what remains would be "a more coherent and streamlined " agency that "would more effectively serve the goals of consumers, competitors, and Congress."

The plan may dovetail with comments from Eisenach and Layton to Congress in 2014 as AEI scholars. Their two main conclusions were that 1) "the historical silo-based approach to communications regulation is inapposite to the modern communications ecosystem” and 2) the FCC functions are largely duplicative of those of other agencies. But it also takes a page or two from a regulatory reform proposal of former-FCC Chairman Bill Kennard back in the late 1990s

Consolidated Communications, FairPoint Gets Antitrust OK

The federal government has no antitrust issues with the proposed $1.5 billion merger of ISP Consolidated Communications Holdings and ISP holding company FairPoint. That came in an early termination notice from the Federal Trade Commission, which means that neither it nor the Justice Department had issues with the merger that required either conditions or suing to block it, so its Hart-Scott-Rodino antitrust review was terminated early.

The merger still needs to get the approval of the Federal Communications Commission, whose review extends beyond antitrust to public interest concerns. Consolidated Communications companies provide approximately 219,000 residential and 409,000 business broadband connections, approximately 189,000 residential voice lines (VoIP and POTS), and approximately 269,000 business voice lines (VoIP and POTS). FairPoint companies serve about 310,000 broadband and 377,000 residential voice subs. It also owns and operates a fiber network of more than 21,000 miles and 1,300 communications towers. The deal was filed with the FCC Dec 20.

NCTA to OMB: Reject FCC's 5G Cybersecurity Reporting Requirement

NCTA: The Internet & Television Association has told the Office of Management and Budget not to approve the Federal Communications Commission's new 5G cybersecurity data collection requirements. That came in a letter the week of Jan 2 to OMB.

As part of the FCC's Spectrum Frontiers Report and Order on freeing up more spectrum bands for 5G wireless and fixed broadband, which was approved last July, the FCC required public disclosures with the FCC on "plans for safeguarding networks and devices from security breaches." NCTA says the "substantial" new reporting requirement—OMB has to sign off on added paperwork burdens in new federal rules per the Paperwork Reduction Act (PRA)—is unnecessary, has no "practical utility," and "grossly" underestimates the time and effort in compiling. NCTA says the requirement will either require "a high enough level of generality to avoid compromising network security by providing details that create vulnerabilities, but therefore offer the FCC information with no practical use," or expose information that could reveal vulnerabilities and actually decrease 5G cybersecurity. NCTA says that the PRA requires that utility of information must be actual, not theoretical or potential, and the FCC has not demonstrated an "actual, timely use for the information."

Reps Luján, Yarmuth Say FCC Disclosure Item Is Just First Step

A pair of Democratic Reps who have pushed for greater transparency in political advertising disclosures were encouraged by the Federal Communications Commission's new clarification, issued this week in resolving a raft of complaints, but suggested it fell short of what they were looking for. Reps Ben Ray Luján (D-NM) and John Yarmuth (D-KY) said, “While we are encouraged by this first step toward better transparency in the FCC’s political file rules, it merely highlights that more work needs to be done." They said for starters that if the new Administration wants to "drain the swamp," it should include strenghtening disclosures so that it was clear that the "true donors" behind issue ads were identified. They also want the FCC's online political file database to be machine readable. They said they would introduce new legislation to make sure that the public knows who is funding the political ads they see and hear.

CPJ, Sen Klobuchar Push AG Nominee to Support Journalist Protections

The Committee to Protect journalists is calling on Attorney General nominee Sen Jeff Sessions (R-AL) to commit to support guidelines that make it harder for the Justice Department to subpoena journalists' records. At the hearing, Sen Amy Klobuchar (D-MN), whose father was a journalist, said she was particularly sensitive to the journalist's role as a watchdog and asked him to commit to guidelines Attorney General Eric Holder issued in 2015, which include releasing an annual report on any subpoenas and promising not to put journalists in jail for doing their jobs. Sessions did not commit, saying he needed to study the guidelines.

FCC Approves Nexstar-Media General Merger

The Federal Communications Commission's Media Bureau has approved the Nexstar-Media General merger in an order published on the FCC website Jan 11. Both broadcasters had asked the FCC to waive its rule preventing a decision on the deal while the spectrum auction was still in progress.

The commission agreed and at the same time approved the merger. Citing the proposed spin-offs to make the merger comply with local and national ownership rules, the FCC concluded that the merger is OK, and it would waive the prohibition on completing the deal during the auction. Among the public interest benefits the Media Bureau included Nexstar viewers' access to Media General's DC news bureau and the establishment of state news bureaus. It gave "minimal weight" to cost savings and efficiencies or assertions that the deal woudl result in lower programming costs or more diverse programming. The FCC also gave little weight to their contention that the deal would make it a more attractive partner to pay-TV providers--a number of which opposed the deal--and would have more "strategic alternatives:" outside of broadcasting. "Nexstar has provided insufficient information for us to verify this benefit," the bureau said. But given the expanded news presence, the FCC concluded that the companies had "adequately" established the deal was in the public interest. At the same time, the FCC denied the petition to deny the deal filed by the American Cable Association, Cox and Dish.

FCC to Vote on Public File Item at First GOP-Led Meeting

The first Federal Communications Commission meeting under new, Republican leadership will consist of a single item. That is according to the tentative agenda circulated Jan 10. The noncontroversial item is an order that would "eliminate the requirement that commercial broadcast stations retain copies of letters and emails from the public in their public inspection file and the requirement that cable operators retain the location of the cable system’s principal headend in their public inspection file."

It is a fitting first item since, unlike many a recent vote, nary a discouraging word was heard about it at the public meeting where the commissioners agreed on the proposal. While the public doesn't need to know where the principal headend of a cable system is (where it takes the TV signal off the air and puts it on the wire), and publicizing it could be a security threat, the FCC pointed out in May that TV stations and the FCC still need to know where it is, so the item will elaborate on how that info should be collected and made available to both.

DIGIT Act Reintroduced in Senate

The bipartisan congressional Internet of Things working group comprising Sens Deb Fischer (R-NE), Cory Booker (D-NJ), Cory Gardner (R-CO) and Brian Schatz (D-HI) has reintroduced the Developing Innovation and Growing the Internet of Things (DIGIT) Act. The bill was introduced in the last Congress, following up on a resolution that passed the Senate last March that called for a national strategy on IoT.

The bill would "convene a working group of federal entities that would consult with private sector stakeholders to provide recommendations to Congress." Those would include on how to encourage the growth of IoT, seeking input from the private sector to help prevent "regulatory silos." It would also direct the FCC to launch a proceeding on the spectrum needs of IoT. Congress has estimated that more than 50 billion devices will be connected by 2020 generating billions in economic opportunity. The bill directs the Secretary of Commerce to convene a working group of federal stakeholders to advise Congress on how to plan and encourage IoT, including spectrum needs and the appropriate regulatory environment for things like consumer protection, privacy and security.

FCC Proposes Mandating Progress Reports From Nonreimbursed Stations

The Federal Communications Commission's Media Bureau has tentatively concluded that both stations being reimbursed for moving expenses after the spectrum auction and those who will not be reimbursed but will be moving anyway should file periodic progress reports with the commission. That came in a public notice describing the information broadcasters will need to include in those reports. Broadcasters who won their auction bids to move from UHF to VHF or from higher V to lower V channel positions won't get moving expenses paid out of the $1.75 billion transition fund—they are expected to use some of the money from those multi-million dollar FCC payouts to pay for their moves. But while broadcasters who are getting reimbursed are required to file periodic progress reports "showing how the disbursed funds have been spent and what portion of their construction is complete," the same requirement was not put on nonreimbursable stations. But given that those stations will also be part of the daisy chain of moves and equipment upgrades, the FCC is asking for public comment on whether it should require reports from them as well, suggesting that it should.

E-Mail Privacy Bill Re-Introduced

A bipartisan House contingent has re-introduced the Email Privacy Act, a bill that would require law enforcement to get a warrant before law enforcement could access Internet service provider's digital records, such as e-mails and texts. The bill was introduced by Rep Kevin Yoder (R-KS) and Jared Polis (D-CO), with the backing of Rep Suzan DelBene (D-WA). Rep DelBene pointed out that among the bill's backers are the ACLU, Center for Democracy and Technology, Electronic Frontier Foundation, Amazon, Apple, Facebook, Google, Microsoft and Twitter. The House was not the problem with the bill in 2015. It was the Senate that couldn't agree on a way forward. The bill passed the House unanimously in the last Congress, but was held over by the Senate Judiciary Committee after amendments were offered that could have undone a compromise approach.

American Television Allinace Renews Push for Retransmission Reform

The Federal Communications Commission under Democratic chairman Tom Wheeler declined to undertake retransmission consent reform, but the American Television Alliance appears to be looking for a new view from the new Administration. ATVA comprises cable operators, satellite operators and others who have been pushing the FCC to make blackouts and program bundling bad faith retransmission negotiating tactics, but the FCC closed its retrans review without doing that.

In a letter to the FCC, ATVA cited stations in 46 markets whose signals had gone dark on cable systems New Year's Day. ATVA Director Mike Chappell urged the FCC to undertake reform. He said that FCC Chairman Tom Wheeler's blog post--back when the FCC decided no new rules were needed --"suggesting that existing rules are sufficient to protect American viewers from abuses of the retransmission consent system" was belied by that figure. " The most recent evidence demonstrates what the American Television Alliance has always maintained —existing rules do not protect the viewing public from broadcaster blackout," he wrote.

Source: Rep Blackburn to Head House Communications Subcommittee

Apparently, Rep Marsha Blackburn (R-TN) has been tapped to head the House Communications Subcommittee. Rep Blackburn has been active on the subcommittee, opposing the Federal Communications Commission’s network neutrality rules, broadband privacy framework and set-top box revamp. She has been vice chair of the full committee. She is also on President-elect Donald Trump's transition team executive committee.

White House Takes Aim at Cable, Telecommunicaiton Bills

Even as congressional cable bill line item critics were targeting retransmission and sports net fees, the outgoing administration was taking aim at some cable bill line items as well. In a report on hidden fees in various sectors—event ticketing, resorts, airlines—the White House's National Economic Council devoted a section to cable and phone fees, their own and third-party fees, that increase the price of service above the advertised price. "Hence, the subscriber to a $39.99 monthly plan might pay a real price of $46.99 thanks to the addition of an industry-imposed $4 'regulatory cost recovery fee' [the FCC charges cable operators a regulatory fee] and a $3 'administrative fee,' which are all paid to the telephone company, and therefore represent the real price of the service," the report said.

It called the complexity of fees on telecommunication bills a cause for independent concern. The report slammed carriers for "sometimes" adding third-party fees without notice to the consumer. "While carriers may argue that the fees are optional in the sense that they can be removed, given that customers do not affirmatively opt-into paying these fees, they are effectively hidden." The White House suggests that market forces, alone, will not and have not been effective in discouraging hidden fees but gives consumer groups credit for helping moderate them.

Sen Thune Open to Confirming Rosenworcel

Senate Commerce Committee Chairman John Thune (R-SD) has signaled he would be open to confirming Democrat Jessica Rosenworcel to another term on the Federal Communications Commission but also says the new President should get to nominate who he wants to serve on that commission. President Barack Obama this week resubmitted Rosenworcel's renomination to the new Senate after the old one failed to hold a floor vote on her reconfirmation and she was forced to exit by Jan. 3, when the new Congress was seated. In an emailed statement, Chairman Thune, whose committee holds the confirmation hearing for FCC nominees, said: "I am open to the idea of confirming her later this year, as long as we preserve the new Republican majority on the commission in the process.”

Noncommerical Broadcasters Will Ask New FCC to Revisit Reporting Requirements

Public broadcasters are looking to the new Republican Federal Communications Commission for help after the FCC's Media Bureau this week rejected their petition to reconsider boosting their ownership reporting requirements in a way they argue is pointless and in no one's best interest. America's Public Television Stations (APTS) president Patrick Butler signaled that his members—noncommercial TV stations nationwide—would be taking up the suggestion of the Republican commissioners, Ajit Pai and Michael O'Rielly, that they ask the FCC, under new management, to revisit the question.

"America's Public Television Stations are most grateful to Commissioners Pai and O'Rielly for their statement in opposition to the Media Bureau order requiring non-commercial educational television stations to provide 'ownership' information to the Commission," said Butler. "We intend to request a review and a reversal of this order by the full Commission, and we are encouraged by the commitment of Commissioners Pai and O'Rielly to pursue this course." A phalanx of noncommercial broadcasting entities asked the FCC to reconsider and reverse the January 2016 order that was billed as improving the data collected from broadcasters to help the commission analyze ownership and diversity issues. The bottom line, said the FCC back in January, was that the moves would improve the reliability and comprehensiveness of its media ownership data, including on diversity and noncommercial station reporting to more closely square with commercial.

House Homeland Security Committee Chairman: Confident Russia Tried to Interfere With Election

House Homeland Security Committee Chairman Michael McCaul (R-TX) does not share President-elect Donald Trump's skepticism about the intelligence concerning Russia's interference in the recent election. In a press conference on new cybersecurity recommendations from a Center for Strategic and International Studies’ task force he co-chairs, Chairman McCaul said he had made it clear to the Obama Administration and the incoming Trump Administration that—from the intel he had seen, both classified and non-classified—Russia interfered with the election and there should be consequences.

Chairman McCaul said the intelligence community is not always right, citing the Iraq weapons of mass destruction intel, but in this case he appeared confident that Russia had tried to interfere with the election, and, if not favor one candidate, perhaps disfavor another. Chairman McCaul said his highest cybersecurity priority would be push for a single, strong cybersecurity agency under the Department of Homeland security. He also said the government needs to do more to help networks protect themselves and share threat information. He said the criminals, hactivists and nation states are winning the cyber war, undermining "the very foundations of our Republic."

FCC Adjusts Regulated Cable Rates

Rate-regulated cable services can boost their non-external cost base for basic rates by 1.42%. That is the latest inflation adjustment announced by the Federal Communications Commission for those filing their rate forms, based on changes from July 1, 2016 to Sept. 30, 2016. The increase for April-June was 2.3%.

Local franchise authorities can, but are not required to, regulate basic rates where there is a lack of effective competition. The price (of the non-external cost portion of rates) is adjusted quarterly based on changes in the GNP price index published by the State Department's Bureau of Economic analysis. Pay-TV providers are allowed to pass though external costs, like program price increases, but those can be reviewed by the local franchise authority (LFA), which is the one doing the rate regulating rather than the FCC. It will be the 85th such quarterly adjustment since the FCC started releasing them.

Surprise: White House Resubmits Rosenworcel Nomination to FCC

The White House has apparently not given up on the re-nomination of FCC Commissioner Jessica Rosenworcel, or at least is making the gesture. Rosenworcel's was among several nominations submitted by the President Barack Obama to the Senate Jan 4. The Senate in the last Congress failed to vote on her re-nomination, which meant she had to leave before the new congress convened Jan 3. But, at least theoretically, she could be named to fill the seat she just vacated, paired with the Republican President-elect Donald Trump will be nominating for chairman, or commissioner if he picks the chair from one of the two Republicans currently serving. FCC Chairman Tom Wheeler released a statement saying, “I applaud President Obama’s reappointment of Jessica Rosenworcel to the FCC, and hope that Congress will act quickly to confirm her nomination.”

FCC Calls Emergency Alert System Test A Success

The Federal Communications Commission's Public Safety and Homeland Security Bureau has published the initial results from its Sept. 28 nationwide test of the Emergency Alert System (EAS)—particularly a new online delivery component—and it boiled down to: shows improvement from the 2011 test but needs improvement.

The test was christened a success per the standard that the vast majority of participants successfully received (94%) and transmitted (82%) the warning code and, in comparison to the 2011 test, there was "significant improvement." That included the 21,000-plus participants—TV and radio stations, cable and satellite providers, and others, which was a 26% increase from 2011. The 94% reception success rate was also a 12% improvement over 2011. In the room for improvement department, there were problems with poor audio and with disability access. The bureau had some recommendations for improvement, including requiring EAS participants to check for the internet feed warning when they get broadcast alert and transmit the "crystal clear" audio from the former's digital file.

FCC: Stage 4 of Reverse Auction to End Jan. 13

The Federal Communications Commission is again increasing the pace of bidding in the reverse portion of the incentive spectrum auction, with a target end date of Friday, Jan 13. So far, broadcasters have not had much luck getting wireless providers and other forward auction bidders, which includes Comcast, to collectively pay their clearing price. The reverse portion is now in its fourth round, with wireless companies not coming close to the first three price points.

Currently, there are three rounds of bidding per day, an hour per round. Starting Jan 10, the FCC will increase that to four one-hour rounds per day. At that rate, the FCC's base clock will have reached zero on Jan. 13, round 52. It could take an additional two rounds depending on whether the final bidding status of any VHF station was not settled by then. If so, the FCC will add a couple more rounds on that day to make sure it wraps up Jan. 13.

FCC Moves January Meeting From Jan 26 to Jan 31

The Federal Communications Commission has moved the January meeting from Jan 26 to Jan 31. In either event, it will come after FCC Chairman Tom Wheeler has left the building and the new Trump Administration has taken over. It is not clear yet which of the Republican commissioners will preside as acting chair, though it is likely senior Republican Ajit Pai. The FCC will now circulate a tentative agenda for the meeting on Jan 10 (three weeks beforehand, per custom).

The move of the meeting was to provide more time for planning following the change in administration and more time with the agenda, apparently, given that one of those Republican commissioners will almost certainly be presiding and in control of that agenda for the meeting.