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Public Benefit Still Missing from Digital TV Transition

March 27, 2007 The Campaign Legal Center, the Benton Foundation and the Center for American Progress have written key Congressional leaders to push the FCC to finish its inquiry into DTV public interest obligations.

Letter to Chairmen Dingell and Markey

March 27, 2007

John Dingell Edward Markey
Chairman Chairman
Committee on Energy and Commerce Subcommittee on Telecommunications &
2328 Rayburn the Internet
Washington, DC 20515 2108 Rayburn
Washington, DC 20515

Dear Chairmen Dingell and Markey,

At the March 14 House Subcommittee on Telecommunications & the Internet Oversight of the Federal Communications Commission hearing, FCC Chairman Kevin Martin suggested that the Commission has addressed many of the issues raised in the 1999 Notice of Inquiry on the Public Interest Obligations of TV Broadcast Licensees (“NOI”). We write today to respectfully disagree with Chairman Martin and again to call for quick resolution on a matter pending before the Commission since 1995, not 1999.

In the 1995 Notice of Proposed Rulemaking on Advanced Television Services and Their Impact Upon the Existing Television Broadcast Service (“NPRM”), the Commission noted that the rules imposing public interest obligations on broadcast licensees originate in the statutory mandate that broadcasters serve the “public interest, convenience, and necessity,” as well as other provisions of the Communications Act. These obligations include the requirements that broadcasters must provide “reasonable access” to candidates for federal elective office and must afford “equal opportunities” to candidates for any public office and that weekly they must provide three hours of children’s educational programming. Licensees must also adhere to restrictions on the airing of indecent programming and must comply with the 1996 Act provisions relating to the rating of video programming. The Commission noted that these current public interest rules were developed under the analog model and therefore were shaped by the limitations inherent in analog technology. The Commission sought comment on whether the greater capabilities afforded by digital technology should affect licensees’ obligations to serve the public interest, and if so, how those obligations might be adapted to the digital context.

Specifically, the Commission asked:

Should a licensee’s public interest obligations depend on the nature of the services it chooses to provide and, if that is the case, how so? For example, if a broadcaster chooses to provide multiple standard definition services, should public interest obligations attach to each one? [S]hould public interest obligations be seen as attaching not to services but to licensees, each of whom would be required to operate the facilities associated with its 6 MHz [digital] channel in the public interest?

On April 3, 1997, the Commission adopted the Fifth Report and Order on Advanced Television Services and Their Impact Upon the Existing Television Broadcast Service (“Fifth Report & Order”). The order explicitly did not resolve the public interest obligation debate stating:

Some argue that broadcasters’ public interest obligations in the digital world should be clearly defined and commensurate with the new opportunities provided by the digital channel broadcasters are receiving. Others contend that our current public interest rules need not change simply because broadcasters will be using digital technology to provide the same broadcast service to the public. We are not resolving this debate today. Instead, at an appropriate time, we will issue a Notice to collect and consider all views. As we authorize digital service, however, broadcast licensees and the public are on notice that existing public interest requirements continue to apply to all broadcast licensees. Broadcasters and the public are also on notice that the Commission may adopt new public interest rules for digital television. Thus as to the public interest, our action today forecloses nothing from our consideration.

Nearly three years after the Fifth Report & Order and one year after a Presidential Advisory Committee concluded, “As this Nation’s 1,600 television stations begin to convert to a digital television format, it is appropriate to reexamine the long-standing social compact between broadcasters and the American people,” the Commission adopted the 1999 NOI mentioned by Chairman Martin.

The 1999 NOI again raised unresolved questions about multicasting and the “challenges unique to the digital era”:

It is thus clear that DTV broadcasters must air programming responsive to their communities of license, comply with the statutory requirements concerning political advertising and candidate access, and provide children’s educational and informational programming, among other things. But as People for Better TV ask, how do these obligations apply to a DTV broadcaster that chooses to multicast? Do a licensee’s public interest obligations attach to the DTV channel as a whole, such that a licensee has discretion to fulfill them on one of its program streams, or to air some of its public interest programming on more than one of its program streams? Should, instead, the obligations attach to each program stream offered by the licensee, such that, for example, a licensee would need to air children’s programming on each of its DTV program streams? The Advisory Committee Report contemplates that, under certain circumstances, a digital broadcaster should not have nonstatutory public interest obligations imposed on channels other than its “primary” channel. A majority of the members of the Advisory Committee believe that the FCC should prohibit broadcasters from segregating candidate-centered programming to separate program streams, because they believe that would violate candidates’ reasonable access and equal opportunities. We seek comment on these approaches. In addition, how should we take into account the fact that DTV broadcasters can choose either to multicast multiple standard definition DTV program streams or broadcast one or two HDTV program streams during different parts of the day?

In addition, the FCC asked for comments on the following issues that we do not believe have been resolved yet:

• Disclosure Obligations: Current Commission rules require commercial TV broadcasters to include in their public file, among other things, citizen agreements, records concerning broadcasts by candidates for public office, annual employment reports, letters and e-mail from the public, issues/programming lists, records concerning children’s programming commercial limits, and children’s television programming reports. The NOI led to a Notice of Proposed Rulemaking, but the Commission has not yet issued a Report & Order.

• Minimum public interest obligations: The Commission asked for comments on the Advisory Committee recommendation that “[t]he FCC should adopt a set of mandatory minimum public interest requirements for digital broadcasters . . . that would not impose an undue burden on digital broadcast stations, . . . should apply to areas generally accepted as important universal responsibilities for broadcasters,” and should be phased in over several years. The Commission has not reported on its findings on minimum public interest obligations.

• Access to the media: One of the Commission’s long-standing goals in the area of broadcast regulation is to enhance the access to the media by all people, including people of all races, ethnicities, and gender, and, most recently, disabled persons. Congress emphasized this goal when it amended section 1 of the Communications Act in 1996 to refine this agency’s mission as making available “to all people of the United States, without discrimination on the basis of race, color, religion, national origin, or sex, a rapid, efficient, Nation-wide, and world-wide wire and radio communication service. . . .” It further highlighted this goal when it added provisions to the Act concerning people with disabilities, such as section 713 relating to closed captioning and video description. Given the efficiencies of digital technology, DTV broadcasters are able to “multicast” and air several programs at the same time, as well as provide more information within the signal of each programming stream. The Commission sought comment on the ways broadcasters can use this technology to provide greater access to the media for the disabled and innovative ways unique to DTV that the Commission could use to encourage diversity in the digital era. The Commission has not issued a report on its findings.

• Enhancing political discourse: The Commission has long interpreted the statutory public interest standard as imposing an obligation on broadcast licensees to air programming regarding political campaigns. The Supreme Court likewise has recognized the impact television broadcasting has on our political system. The Commission sought comment on ways that candidate access to television and thus the quality of political discourse might be improved. The Commission has not reported on its findings.

FCC Commissioners Michael Copps and Jonathon Adelstein have been vocal about the importance of resolving the public interest obligation debate. Their strongest statements on the subject may have been delivered as the Commission decided on the dual and multicast carriage issues in 2005:

We are told to act now because this proceeding has been pending for so long. Other items integral to this one, prerequisites for today’s vote, have been around even longer. Consider that in 1999, more than a year before our first must-carry vote, we opened a proceeding on the public interest obligations of digital TV broadcasters. And in that public interest proceeding, remember that we were not writing on a blank slate. Rather, we were addressing issues raised in a report from a Presidential advisory committee that was issued a full year before that. It is six years later now, and this Commission still has not provided the American people with a clear idea as to how broadcasters’ enhanced digital spectrum is going to improve our viewing experience. The must-carry decision was a golden opportunity in which to consider this—but we let it slip away. Instead we have a record of inaction that will go down, I believe, as the Commission’s major failing in its efforts to move the digital transition forward.

For nearly two years, both internally and externally, I have consistently maintained that it would be premature to decide multicast carriage without assurance that each programming stream would indeed serve its local community through the imposition of concrete and meaningful public interest requirements… Unfortunately, for two years I was unable to engage the industry in an effective fashion to step forward and engage in public interest discussions. Illustrating the resistance, the NAB expressed hostility to the Commission even inquiring into broadcast localism. And aside from concluding a children’s programming item last year, the Commission until today continued to sit on an enhanced public disclosure proposal and a more than five-year old general inquiry into digital public interest obligations.

In February 2007, these same commissioners expressed similar concerns to this Subcommittee:

Consumer education and outreach are indispensable in gaining consumer acceptance of DTV… Another—and critically important—step we could take is to revive some of our long dormant inquiries into the public service obligations of TV and radio broadcasters after the digital transition. I believe that resolving these questions as soon as possible will help consumers understand the benefits of going digital, which will in turn allow them to make the appropriate buying decisions in advance of the transition.

The FCC must develop DTV public interest obligations and encourage more PSAs. First, in order to maximize the benefits to the American people, the Commission needs to determine DTV broadcasters’ public interest obligations. This proceeding has been pending since 1999, and the Commission has failed to produce final rules. Quantitative public interest obligations would encourage broadcasters to develop news and entertainment programming that is compelling and relevant to the viewing audience.

Additionally, in November 2005, the Commission’s own Consumer Advisory Committee, citing a woeful lack of progress, recommended that FCC should, within six months, issue Reports & Orders in the matters of 1) Public Interest Obligations of TV broadcast Licensees (MM Docket No. 99–360) and 2) Standardized and Enhanced Disclosure Requirements for Television Broadcast Licensee Public Interest Obligations (MM 20 Docket No. 00–168).

In 2002, then-Commissioner Kevin Martin said, “I believe it is extremely important for the Commission to resolve outstanding DTV-related issues quickly so that affected industries and consumers know the rules of the road.” We cannot agree more. With less than 700 days before the completion of the transition to all-digital television broadcasting in the US, the American public deserves to know how television broadcasters will fulfill their role as public trustees of the airways in the digital age. Clear guidelines from the Commission would ensure that broadcasters adhere to the law and serve the local educational, informational and civic needs of the children and adults in the communities TV stations are licensed to serve.

We have taken the liberty of attaching a proposed processing guideline for the general public interest portion of broadcast license renewal applications. The processing guidelines include Local Civic and Electoral Affairs Programming; Independently Produced Programming; Reporting/Disclosure; and Excessive Commercialization. Licensees that meet all four of the attached guidelines would receive staff level approval of the general public interest portion of their license renewal application; applications of licensees not meeting all of the following guidelines would be referred to the Commission for review. In addition, viewers would be empowered to file complaints with the Enforcement Bureau alleging that the licensee has failed to comply with the terms of this processing guideline. If, on the basis of viewer complaints or staff review, the staff determined that the licensee consistently fell significantly below the minima set forth here, the staff would have the authority to direct the early filing of license renewal applications or take other enforcement measures as may be appropriate.

We urge you to press the Commission and Chairman Martin to further explain the Commission’s failure to define the public interest obligations of digital broadcasters.

If we can answer any questions or be helpful in any way, please do not hesitate to contact us. Thank you for your time and consideration

Sincerely,

Meredith McGehee Charles Benton Mark Lloyd
Policy Director Chairman Senior Fellow
Campaign Legal Center Benton Foundation Center for American Progress
(202) 736-2200 (847) 328-3040 (202) 682-1611

ENC: Public Interest Obligations and the Digital Television Age

CC: House Subcommittee on Telecommunications and the Internet
FCC Chairman Kevin Martin

Proposed Processing Guideline for Public Interest Obligations for Digital Television Broadcasters

July 2005
I. Processing Guideline

A. Licensees that meet all of the following guidelines will receive staff level approval of the general public interest portion of their license renewal application.
B. Applications of licensees not meeting all of the following guidelines will be referred to the Commission for review.
C. Any viewer may file a complaint with the Enforcement Bureau alleging that the licensee has failed to comply with the terms of this processing guideline. If, on the basis of viewer complaints or staff review, the staff determines that the licensee consistently falls significantly below the minima set forth here, the staff shall have the authority to direct the early filing of license renewal applications or take other enforcement measures as may be appropriate.

II. Local Public and Electoral Affairs Programming Requirements

A. To receive staff level approval, a licensee shall air a minimum of three (3) hours per week of qualifying local public or electoral affairs programming on the most watched channel they control/operate.
1. The most watched channel means the FCC-required free over-the-air standard channel (sometimes referred to as the “dot one channel”) which, like its analog predecessor, provides entertainment, sports, local and national news, election results, weather advisories, access for candidates and public interest programming such as educational programming for children (see FCC’s Fifth Report and Order on DTV).
B. To the degree that a licensee multicasts additional free over the-the-air programming streams, the licensee must air an amount of qualifying local public or electoral affairs programming on those channels equal to three hours per week per channel or three percent of the aggregate number of hours broadcast between the hours of 6:00 a.m. and 11:35 p.m. per week, whichever is less.
1. Licensees shall have the flexibility to decide how to allocate their local public and electoral affairs programming among the additional programming streams other than the most watched channel.
C. Local public and electoral affairs programming must meet the following requirements in order to be counted towards the three hour/three percent minimum:
1. It must be aired between 6:00 a.m. and 11:35 p.m. with at least 50 percent of that programming being aired between 6:00 a.m. and 9:00 a.m. weekdays and 5:00 p.m. and 11:35 p.m.
2. At least 50 percent of the required minimum on the most watched channel must be “first-run programming” by the licensee. For additional programming streams, this requirement may be phased in over 12 months.
3. To the extent that a licensee utilizes such distribution and promotion mechanisms as personal video recorders (PVRs), video-on-demand (VOD), and electronic program guides (EPGs), local public and electoral affairs programming must be made available and promoted using these and other utilized interactive technologies.
4. Programming must be identified and documented as local public or electoral affairs programming, and this information must be made available in the licensee’s public file and website.
5. Regularly scheduled newscasts and portions thereof do not qualify as local public or electoral affairs programming.
D. Local public affairs programming is programming designed to provide the public with information about local issues. Local public affairs programming includes broadcasts of interviews with or statements by elected or appointed officials and relevant policy experts on issues of importance to the community, government meetings, legislative sessions, conferences featuring elected officials, and substantive discussions of civic issues of interest to local communities or groups.
E. Local electoral affairs programming consists of candidate-centered discourse focusing on the local, state and United States Congressional races for offices to be elected by a constituency within the licensee’s broadcast area. Local electoral affairs programming includes broadcasts of candidate debates, interviews, or statements, as well as substantive discussions of ballot measures that will be put before the voters in a forthcoming election.
1. Programming that focuses on the “horserace” aspects of an election does not qualify as local electoral affairs programming. “Horserace” programming is primarily concerned with the political strength or viability of a candidate or ballot issue; focuses on a candidate or ballot issue’s status in relation to polling data, endorsements or fundraising totals; or discusses an election in terms of who is winning or losing.
2. Paid political advertisements do not qualify as local public or electoral affairs programming.
F. In the 30 days prior to a primary election for federal, state and/or local public office and 60 days prior to a general election for federal, state and/or local public office, at least two hours of the three hour minimum shall be local electoral affairs programming, aired between the hours of 6:00 a.m. and 9:00 a.m. and 5:00 p.m. and 11:35 p.m. on the licensee’s most watched channel.
III. Public Service Announcements Requirements
A. Licensees shall broadcast a minimum of 75 unpaid public service announcements (PSAs) per week on its most watched channel and each additional stream of programming.
B. A public service announcement is any announcement for which no consideration of any sort (including, but not limited to, cash, goods or services, in-kind contributions, endorsements, favorable treatment) is made to the licensee or any organization or entity associated with the licensee and which promotes programs, activites or services of federal, state or local governments or the programs, activities or services of nonprofits organizations.
C. At least 50 percent of these PSAs shall be locally produced and directed toward local issues.
D. A significant number shall run between the hours of 6:00 a.m. and 9:00 a.m. and 5:00 p.m. and 11:35 p.m.

IV. Reporting Requirements

A. To receive staff level approval, a licensee shall certify that at the end of each quarter during the preceding license term, it placed on its station website (if it has one) and in its public file, a report identifying any programming that counts toward fulfillment of the processing guideline.
B. The report shall contain the following information for each program:
1. For local public affairs programming, the specific local issues addressed. For electoral affairs programming, identify the race and the name(s) of the candidate(s) or the ballot issue(s)
2. Program format, e.g., talk show, debate, documentary
3. Date and time aired
4. Channel or stream on which it was aired
5. Whether the programming was locally produced
6. Description of any interactive functions utilized
7. Description of how the program was promoted to the public

C. The report shall also contain a description of the efforts made by the licensee to identify issues of importance to the community and to ensure the public was exposed to diverse viewpoints on the issue or election

Coverage Type 

"The biggest problem with the transition to digital television in the United States is that the Federal Communications Commission under the Bush administration has locked the public out of the process of determining what the benefits of the transition might be."
-- Mark Lloyd, Center for American Progress


http://www.benton.org/index.php?q=node/5297
Coverage Type 

GIVING AWAY THE AIRWAVES
[SOURCE: New York Times 3/27/1997, AUTHOR: Bob Dole]
[Commentary] Ten years ago, then former Senate Majority Leader Bob Dole (R-KS) decried the giveaway of valuable spectrum in order to help broadcast TV stations transition to digital technology. He valued the giveaway at $12-70 billion and noted the lack of coverage of the issue in the mainstream press. "The broadcasters insist that they need these airwaves -- on which they will duplicate their programming in digital -- to make the transition to high-definition television. O.K., but why not pay a fair price?" Dole wrote. As it is, this mandated transition to digital television is going to cost taxpayers plenty. Consumers will find their current televisions rendered obsolete by digital broadcasts. Replacing all 222 million TV sets in the country could cost upward of $200 billion. That's pretty serious sticker shock for ''free'' broadcast television. He concluded: "Taxpayers should demand better from the President, Congress, the F.C.C. and the broadcasters. After all, we're talking about billions of dollars -- and that's your money."
http://select.nytimes.com/search/restricted/article?res=F00E13F93D5E0C74...
(requires registration)


http://select.nytimes.com/search/restricted/article?res=F00E13F93D5E0C748EDDAA08…
Coverage Type 

LET'S GET STARTED ON DTV
[SOURCE: center for American Progress, AUTHOR: Mark Lloyd]
[Commentary] The biggest problem with the transition to digital television in the United States is that the Federal Communications Commission under the Bush administration has locked the public out of the process of determining what the benefits of the transition might be. What’s more, yesteryear’s Republican-controlled Congress set the rules regarding this transition. Thus the public interest obligations of digital broadcasters remain undefined and insufficient money has been set aside for the digital conversion. Both problems need to be addressed by Congress this year. Let’s get the transition to digital underway and spend the money allocated by the 109th Congress. The 110th Congress must devote the resources to determine whether there remain unmet needs. And if poor Americans are cut off because funds run out, Congress must then allocate additional funds to ensure that all Americans can make the transition to digital TV.
http://www.americanprogress.org/issues/2007/03/digital_tv.html


Let's Get Started on DTV
Coverage Type 

DIGITAL TORNADO: THE INTERNET AND TELECOMMUNICATIONS POLICY
[SOURCE: Federal Communications Commission 3/27/1997, AUTHOR: Kevin Werbach]
Ten years ago, the FCC released a staff-written Working Paper on the potential challenges and questions raised by the Internet for policy makers. This paper addresses three overlapping telecommunications policy areas that relate to the Internet: law, economics, and public policy. Legal questions arise from the difficulty in applying existing regulatory classifications to Internet-based services. Economic questions arise from the effects of Internet usage on the telecommunications infrastructure, and the effects of the telecommunications infrastructure on the Internet. Public policy questions arise from the need to maximize the public benefits that the Internet brings to society. The paper identified three policy goals: 1) Promote competition in voice, video, and interactive services. 2) Facilitate network investment and technological innovation. 3) Allow all citizens to benefit from advanced technologies.
http://www.fcc.gov/Bureaus/OPP/working_papers/oppwp29.pdf


Ten Years Ago... Digital Tornado
Coverage Type 

NOT NEUTRALITY
[SOURCE: In These Times, AUTHOR: Brian Cook]
Why are the Communications Workers of America opting out of the Save the Internet coalition? Last May, when the House was considering pro-neutrality legislation, CWA President Larry Cohen wrote a letter to the House Judiciary Committee, arguing that if such a bill passed, “investment in the physical infrastructure necessary to provide high-speed Internet would slow down, the U.S. will fall even further behind the rest of the world, and our rural and low-income populations will wait even longer to enter the digital age.” Meanwhile, at the state level, the CWA has vociferously opposed attempts, most notably in Michigan, to mandate net neutrality in the local and state franchise agreements with telecommunications companies that set up conditions of service quality and community benefit provisions. Debbie Goldman, a research economist at the CWA, says the union is simply more concerned with building out networks and increasing their speed, which she believes will render moot any concerns about congestion. “If we have 100 mbps, we’d have so much capacity that the whole issue [of congestion] goes away,” Goldman says. “The real goal is getting big, big broadband so that there isn’t an issue of congestion, which then raises concerns about whether there’d be different types of service. That’s the real goal: How do you get it built? How do you get to big broadband?”
http://www.inthesetimes.com/article/3081/not_neutrality/


Not Neutrality
Coverage Type 

IG CRITICIZES WORK ON WIRELESS NETWORK FOR LAW ENFORCEMENT
[SOURCE: Washington Post, AUTHOR: Spencer S. Hsu and Charles Babington]
The federal government has spent $195 million on a long-promised wireless radio network for the nation's law enforcement agencies that is at "high risk of failure," the Justice Department's inspector general reported yesterday. Inspector General Glenn A. Fine blamed delays, funding shortfalls and infighting among the Justice, Homeland Security and Treasury departments, whose 81,000 agents are expected to use the $5 billion system when it is completed by 2021. The federal partnership is "fractured in its approach and disjointed in its goals," Fine reported. "The system that results from this partnership likely will not be the seamless, interoperable system that was originally envisioned and . . . may not be adequate in the event of another terrorist attack or national disaster." Members of Congress, which is controlled by Democrats, blamed a failure of administration leadership for the problems reported by Fine.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/26/AR200703...
(requires registration)

* Audit criticizes feds' $5 billion wireless system
http://www.usatoday.com/printedition/news/20070327/a_wireless27.art.htm


IG Criticizes Work On Wireless Network For Law Enforcement
Coverage Type 

SHAPIRO CITES DTV "FEAR-MONGERING"
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
Suggesting there was some"fear-mongering" about the transition to digital, Consumer Electronics Association President Gary Shapiro said on Monday that "consumers do not demand these [digital-to-analog converter] boxes as much as some people think they will." Speaking after a CEA forum in Washington on the DTV transition, Shapiro said the transition "will be uncomfortable and different, but that if we do our jobs right most consumers will know what their options are." During a forum panel on the transition, Shapiro said there was more alarmist talk than was justified given that there had been transitions before. However, he likened this one more to that between the horse and buggy and the car--more complicated than the transition from black and white television to color. "Less than 15% of homes will really be shut out totally," by the February 2009 transition to digital, he said, "and of those, some of them want to be shut out," he said. "There is fear-mongering going on, and frankly, it has become a political issue. Democrats are saying the Republicans didn't give enough money and the Democrats now are saying 'oh, we need more money.'" National Cable & Telecommunications Association President Kyle McSlarrow said he thought the difference between this and other transitions was that it was a government-mandated flash-cut to the new technology, which could require a pretty large education campaign to get right.
http://www.broadcastingcable.com/article/CA6427969.html?display=Breaking...

* Shapiro: Dems Fear-Mongering DTV Move
http://www.multichannel.com/article/CA6427985.html?display=Breaking+News


http://www.broadcastingcable.com/article/CA6427969.html?display=Breaking%20News