Senators Question FCC Commissioners

DEMOCRATS PRESS FCC CHIEF ON ENFORCEMENT
[SOURCE: New York Times, AUTHOR: Stephen Labaton]
Signaling tougher oversight, Democrats who recently took control of the Senate urged the head of the Federal Communications Commission to take a more challenging approach to the industries he oversees. In their first appearance before a Senate Commerce Committee under Democratic leadership, Kevin J. Martin, the commission’s chairman, and the other commissioners faced sharp criticism from some of the committee’s senior Democrats on their handling of the recent acquisition of BellSouth by AT&T. The lawmakers also questioned the agency’s recent practice of not thoroughly reviewing applications by radio and television stations to renew their broadcast licenses. Chairman Martin yielded no policy ground, saying, for example, that the conditions that the Democratic members of the commission managed to impose on AT&T’s acquisition of BellSouth would not be applied to the rest of the industry. The renewed oversight of the FCC could, at the very least, temper any deregulatory action that Chairman Martin and his fellow Republican commissioners have been contemplating, particularly as they prepare to consider measures that would make it easier for media conglomerates to own newspapers and television stations in the same cities.
http://www.nytimes.com/2007/02/01/business/media/01cnd-fcc.html?hp&ex=11...
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See also --
* Senators press FCC chair on AT&T merger
[SOURCE: Associated Press, AUTHOR: John Dunbar]
http://news.yahoo.com/s/ap/20070201/ap_on_go_co/fcc_senate

* Senators bristle at FCC chief's enforcement of AT& T-BellSouth merger
http://www.usatoday.com/printedition/money/20070202/fcc02.art.htm

* Democrats Urge Tighter FCC Rules
http://www.washingtonpost.com/wp-dyn/content/article/2007/02/01/AR200702...

* FCC hears wrath of Senate Dems
http://www.hollywoodreporter.com/hr/content_display/television/news/e3ic...

* Democrats Criticize Martin On Merger, TV, Web And Style
http://www.njtelecomupdate.com/lenya/telco/live/tb-NHRS1170361978393.htm...

SENATORS BADGER FCC BOSS ON NET NEUTRALITY
[SOURCE: C-Net|News.com, AUTHOR: Anne Broache]
For the first time since 2004, all five FCC Commissioners appeared before the Senate Commerce Committee. But the hearing, billed as pitting newly-empowered Congressional Democrats vs the Republican-controlled FCC, produced little fireworks. Committee Chairman Daniel Inouye (D-Hawaii) used his allotment to focus on the FCC's handling of what became a contentious decision over which merger conditions to place on AT&T and BellSouth. Chairman Martin's well-known aversion to Net neutrality regulations drew sharp questions from Sen. Byron Dorgan (D-ND), one of the chief sponsors of a bill that would require network operators to follow nondiscrimination rules. By failing to include network operators in the scope of nondiscrimination requirements traditionally placed on telephone companies, "does that mean you favor discrimination?" he asked. Chairman Martin said he might be able to handle such a requirement if nondiscrimination meant, "if you offer a service to one, you have to offer that same service to all." But the idea of prohibiting "any carrier who owns an underlying infrastructure from charging any content provider (extra fees)...could deter some investment in the underlying infrastructure," he said, echoing arguments made by the likes of AT&T and Verizon. Sen Dorgan and several of the Democratic senators present indicated they were still incensed about the FCC's decision to relax its media ownership rules years ago. Some asked what the regulators planned to do about what they consider to be dwindling local news content on the broadcast airwaves. Chairman Martin said he wasn't opposed to considering making rules regarding "public interest" requirements for broadcasters, but said he was hesitant to pursue rules forcing them "to put on certain kinds of programming."
http://news.com.com/Senate+Democrats+badger+FCC+boss+on+Net+neutrality/2...

See also --

* MARTIN SAYS FCC WILL ENFORCE NET-NEUTRALITY CONDITIONS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
FCC Chairman Kevin Martin told the Senate Commerce Committee Thursday that he did not undercut the AT&T/Bell South merger with a statement he issued at the time. He said the FCC would enforce conditions, like network neutrality, which the companies volunteered to accept, but that that enforcement would not change commission rules, and that the commission would not then necessarily apply, as a matter of policy, those conditions to others.
http://www.broadcastingcable.com/article/CA6412433?title=Article&spacede...

SENATE COMMITTEE GRILLS FULL FCC PANEL
[SOURCE: TelecomWeb]
Sen. Amy Klobucher (D-MN) brought up the digital divide, asking commissioners when there would be broadband parity for urban and rural areas. FCC Commissioner Adelstein took this on first, saying, "We need to undertake a multipronged approach, because we have terrible data. We need a national broadband strategy with thresholds, and we need to create incentives for innovation and competition. We also need to commit some USF (funding) for this as well." Added Commissioner Copps, "I am really worried that we can go into 21st century with such a divide, with all of these wonderful services. If we don't get broadband out there, kids can't compete. And it has a business application, too. What if you want to start a business in a rural area and you don't have high-speed Internet, but your competitors do?" And regarding the USF, Chairman Martin was asked by Sen. Byron Dorgan (D-ND) about ways to get high-speed Internet into rural or underserved areas. "There has been extraordinary growth of other companies coming in to serve rural areas, and they will receive about $1 billion in USF support," Chairman Martin answered. "The problem is that (financial support of) such continued growth isn't sustainable. We need to have a mechanism to choose carriers that can serve areas without depending on the USF, possibly more wireless. And we need a more efficient means of distributing USF funds." To that end, Commissioner Copps told the senators an en banc hearing on this topic will be held at the FCC soon.
http://www.telecomweb.com/tnd/21518.html

MARTIN BEEFS TO SENATE PANEL ABOUT CABLE
[SOURCE: Multichannel News, AUTHOR: Ted Hearn]
Taking another swipe at the country’s top pay TV provider, Federal Communications Commission Chairman Kevin Martin complained about cable industry rates and packages in testimony Thursday before the Senate Commerce Committee. The FCC leader told lawmakers that cable rates had jumped 38% from 2000-05 and 93% from 1995-2005, while the price of other communications products -- local and long -distance telephone and wireless phone service -- had “decreased dramatically.” Chairman Martin, who supports the a la carte sale of cable networks and cash back for parents who block indecent cable content, went on to complain that cable program tiers represented a flawed case of one-size-fits-all marketing. “For those who want to receive 100 channels or more, today’s most popular cable packages may be a good value,” Chairman Martin said. “But according to Nielsen, most viewers watch fewer than two-dozen channels. For them, the deal isn't as good.”
http://www.multichannel.com/article/CA6412828.html?display=Breaking+News

* LULAC Criticizes Martin on À La Carte
The League of United Latin American Citizens (LULAC) was quick to criticize FCC Chairman Kevin Martin for his continued advocacy of cable à la carte, in this case during a Senate Commerce Committee oversight hearing Thursday, saying his "dogmatic pursuit" of the issue could be disastrous.
http://www.broadcastingcable.com/article/CA6412790.html?display=Breaking...

* Martin Backs Media Bureau on Retrans Call
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Apparently FCC Chairman Kevin Martin is circulating a proposal among the other commissioners that supports the Media Bureau's decision that Sinclair has not been bargaining in bad faith and that the FCC doesn't have the authority to referee the broadcaster's retransmission consent impasse with cable operator Mediacom. Recently the top ranking members of the Senate Commerce Committee asked the FCC to urge Sinclair and cable operator Mediacom to submit to arbitration. The chairman has said he doesn't think the commission has that authority, even during an appeal, though he has urged the parties to submit voluntarily to arbitration. Mediacom has said it would. Sinclair has declined in no uncertain terms.
http://www.broadcastingcable.com/article/CA6412801.html?display=Breaking...

INOUYE WANTS COMMISSIONERS TO TALK
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senate Commerce Committee Chairman Daniel Inouye (D-Hawaii) said Thursday he would reintroduce a bill to allow more than two commissioners to meet outside of the public meetings. All the commissioners are agreed that those "sunshine" rules, which are meant to prevent back-room dealing, instead make it harder to come to consensus.
http://www.broadcastingcable.com/article/CA6412613?title=Article&spacede...

ROCKEFELLER ON TV: "JUNK, SEX, SCANDAL"
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Senator Jay Rockefeller (D-WV) took dead aim at TV violence and sex Thursday, saying TV was in the worst state ever. FCC Chairman Kevin Martin did not argue, agreeing with Sen Rockefeller that the industry's public-information campaign on the V-Chip/ratings system was insufficient. Sen Rockefeller said he barely watched TV and hoped his grown kids don't. Addressing FCC Chairman Kevin Martin, he said that nobody watches news anymore because there isn't any, except on cable where it was a case of who can report the latest murder first. Sen Rockefeller is reintroducing a bill that would allow the FCC to regulate violence as well as indecency. He cited Parents Television Council statistics on the rise in TV violence, then asked Chairman Martin if the industry educational take on self-regulation was working. No, said Martin, saying he continued to have concerns about both broadcast and cable content and said that industry educational efforts were insufficient.
http://www.broadcastingcable.com/article/CA6412513?title=Article&spacede...

FCC REITERATES PREFERENCE FOR UNLICENSED WIRELESS
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The FCC reiterated Thursday its preference to open up so-called white spaces in the broadcast band to unlicensed advanced wireless devices. It has begun the process of opening up the space between TV station frequencies for advanced wireless services, but has not decided whether those should be licensed or unlicensed. In a Senate Commerce Committee oversight hearing Thursday, FCC Chairman Kevin Martin said there was a presumptive preference for unlicensed because it would allow for the new devices, and thus the more efficient use of the spectrum more quickly. Asked by Sen. John Sununu (R-NH) about the white spaces issue, Chairman Martin explained that if the FCC had to first license the new uses, it would first have to identify just where the spaces were, which could potentially delay the process. Instead, he said, the preferable approach would be to insure against interference and then let the devices operate, allowing the government to more quickly and fully tap into new uses of the spectrum. Rolling out advanced broadband, including wireless delivery, is a priority for the Commission.
http://www.broadcastingcable.com/article/CA6412498?title=Article&spacede...

* Broadcasters Weigh In On White Spaces
http://www.broadcastingcable.com/article/CA6412804?title=Article&spacede...

PROTECTING THE PUBLIC INTEREST AND CONSUMERS
[SOURCE: US Senate Commerce Committee]
Opening statement of Senate Commerce Committee Chairman Daniel Inouye (D-Hawaii): "In three years, we have seen the mergers of the two largest Bell companies with the two largest long-distance companies. This was immediately followed by AT&T's acquisition of BellSouth. Meanwhile, technology has fueled change, and single-purpose networks have given way to new multi-purpose platforms that can support all measures of applications and services, including voice, video, and email service. But the communications revolution does not come without risk. As public servants, both here in Congress and on the Commission, we must be vigilant in our oversight to ensure that the communications industry evolves in a manner that does not harm consumers."
http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Statemen...

Additional opening statements --

* Sen John Kerry (D-MA): "Despite President Bush’s promise of ubiquitous broadband by 2007 -- we remain well short of that goal. I don't see much of an Administration strategy at all. And I am concerned about it."
http://commerce.senate.gov/public/index.cfm?FuseAction=Hearings.Statemen...

* FCC Chairman Martin: "Faced with such fast-paced technological change, the Commission has tried to make decisions based on a fundamental belief that a robust, competitive marketplace, not regulation, is ultimately the greatest protector of the public interest. Competition is the best method of delivering the benefits of choice, innovation, and affordability to American consumers. Competition drives prices down and spurs providers to improve service and create new products." he identified four priorities for the Commission: 1) Increasing access to communications services. 2) Promote real choice for consumers. 3) Protect consumers. 4) Enhance public safety.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270192A1.doc

* Commissioner Copps: "I know that many local broadcasters strive mightily to serve the public interest. But increasingly the public-spirited part of the profession is being squeezed out. Too much of TV and radio today is homogenized, often gratuitously violent programming. Even worse is what we don't see enough of-the community and civic affairs coverage that is democracy's lifeblood. I've traveled all across the country-to a dozen media hearings just in the last year-and I've seen people's impatience with the status quo. It is time for the FCC to focus not only on avoiding bad new rules, but to revisit the bad old rules that got us here in the first place. I am very pleased the Chairman has committed to complete our long-dormant localism proceeding before moving forward on media ownership. Going beyond that, we need to find a way to bring basic public interest standards back to broadcasting and the spirit of public interest to other media, too."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270194A1.doc

* Commissioner Adelstein: "We must upgrade our communications infrastructure in every corner of this country. And we must do a better job of making innovative communications technologies more widely available and affordable to everyone. All of our citizens should have the opportunity to maximize their potential through communications, no matter where they live or what challenges they face. To promote the communications needs of everyone in this country, we should focus on improving access to broadband services, modernizing universal service, and protecting diversity, competition, and localism in our media. "
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270200A1.doc

* Commissioner Tate: "The communications marketplace continues to evolve daily, as convergence shakes the foundations of the old order for industry, for government, and for consumers alike. Converging technologies are blurring the lines between traditional communications platforms."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270198A1.doc

* Commissioner McDowell: "While advances in technology and competitiveness defy labeling under the regulatory stove pipes of old, I endeavor to approach each issue with a consistent regulatory philosophy; one that has served our nation well since its inception; one that trusts competitive free enterprise to serve consumers the best."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270199A1.doc