October 2017

A freshman Michigan state representative introduced a sweeping bill last week that would ban any city and town in the state from using public funds to provide municipal broadband service — publicly owned internet infrastructure. A review of state campaign finance and lobbying records found that the representative’s campaign was heavily financed by telecommunications companies and trade associations. She also dined with trade association lobbyists in the months leading up to introducing the bill.

MI state Rep Michele Hoitenga, who is chair of the Michigan House's Communications and Technology Committee, introduced the bill, HB 5099, on October 12. The bill says that a city or town “shall not use any federal, state, or local funds or loans to pay for the cost of providing qualified internet service,” effectively banning municipal broadband outright. Campaign finance records show that two of her largest campaign contributors are AT&T Michigan and the Telecommunications Association of Michigan (TAM): AT&T gave her campaign $1,500 while TAM provided her with $3,500 — large amounts for a first term state representative. The Michigan Cable Telecommunications Association — a separate entity from TAM — gave Hoitenga’s campaign $1,000.

The Federal Communications Commission will vote in Nov to eliminate a decades-old rule designed to preserve media diversity in local markets, FCC Chairman Ajit Pai said Oct 25. The move is aimed at supporting economically struggling media outlets in an age of digital consumption. But critics say it will lead to greater media consolidation and the loss of independent voices.

The regulations, passed in 1975, prevent any single company from owning both a full-power TV station in a given market and a daily newspaper at the same time. “The marketplace is nothing like it was in 1975,” Chairman Pai told House Communications Subcommittee members at a hearing, arguing that the restriction on newspaper/broadcast cross-ownership was outdated. “The FCC's rules still presume the market is defined by pulp and rabbit ears.” The FCC vote, expected Nov 16, could also eliminate a rule that prevents TV stations in the same market from merging if the outcome leads to fewer than eight independent stations operating in that market. “If the federal government has no business intervening in news, then we must stop the government from intervening in the news business,” he said.

Ajit Pai’s disastrous proposal is tailor-made for Sinclair and other giant broadcast chains that push often slanted or cookie-cutter content over the public airwaves. He’s fulfilling a longstanding industry wish list and ignoring how decades of runaway media consolidation have significantly harmed local news and independent voices.

The Federal Communications Commission has routinely failed — and been repeatedly scolded by the courts for doing so — to consider how gutting these rules will impact already abysmally low levels of broadcast ownership by women and people of color. We need to strengthen local voices and increase viewpoint diversity, not surrender our airwaves to an ever-smaller group of giant conglomerates. Chairman Pai is clearly committed to doing the bidding of companies like Sinclair and clearing any obstacles to their voracious expansion. But his attempt will be met with fierce opposition at the Commission and in the courts.