Broadcasting&Cable

Three dozen Democratic members of Congress have asked Federal Communications Commission Chairman Tom Wheeler to use Title II authority to protect Internet openness.

That letter was part of a flood of advice from the Hill and elsewhere in advance of the FCC's scheduled open Internet rule vote May 15.

"We urge the FCC to use its clear authority under Title II of the Communications Act to reclassify the transmission component of broadband Internet access as a telecommunications service," they wrote. Without such strong protections, they say, the Internet "could devolve into a closed platform in which those who pay the most can overwhelm other views and ideas."

On the eve of the Federal Communications Commission's vote on incentive auction rules, a pair of senators from each party asked FCC Chairman Tom Wheeler to reconsider auction rules that "will limit participation by certain carriers in many markets across the country."

Signing the letter were Senators John Cornyn (R-TX), Charles Schumer (D-NY), John Thune (R-SD), and Sherrod Brown (D-OH). They said that limiting participation could not only result in less spectrum being put into the market, but less revenue to pay for not only the FirstNet interoperable broadband public safety network but the $20 billion that incentive auction is expected to contribute to deficit reduction.

A trio of Republican senators, all members of the Commerce Committee that oversees the Federal Communications Commission, has suggested the FCC may want to delay its vote on a draft of new network neutrality rules, which at press time was scheduled for a May 15 vote.

In a letter to FCC Chairman Tom Wheeler, Sens Deb Fischer (R-NE), Kelly Ayotte (R-NH) and Dan Coats (R-IN) said they had "strong reservations" about proceeding to a vote at this time and pointed to recent calls by commissioners Deborah Rosenworcel, a Democrat, and Ajit Pai, a Republican, to delay the vote, and reports that the Republican members of the commission had been "kept in the dark” about the revised proposal circulated (actually, sources said the other Democrats only got a little more time from the chairman's office to vet the proposal).

The senators said they thought the FCC needed to give the proposal a "more thorough examination" before voting, including a "rigorous economic analysis."

The Federal Communications Commission appears to be lining up its ducks on spectrum auction aggregation limits even as it ducks criticism from AT&T, Verizon and others that they could adversely impact the broadcast incentive auction.

According to a letter from William Baer, who heads up the Department of Justice's antitrust division, FCC Chairman Tom Wheeler chief of staff Ruth Milkman requested that DOJ reiterate its April comments in support of auction rules that allow smaller nationwide carriers without as much low-band spectrum as, say, an AT&T or Verizon, to get access to that spectrum via the upcoming auction.

Baer did so, saying that he was writing to "confirm that the Department stands by the views articulated in those April 2013 comments, and that no intervening developments in the industry have affected the compelling economic rationale for well-defined, competition-focused rules concerning acquisitions by the most spectrum-rich providers." Baer said low-band frequency was a "competitively critical input" and the antitcompetitive risks of foreclosure by larger carriers were not simply theoretical.

The Expanding Opportunities for Broadcasters coalition held its own protest/photo op outside Federal Communications Commission headquarters in Washington, but the issue was spectrum auctions rather than network neutrality.

A handful of network neutrality advocates have been camped out vowing to stay until the FCC's May 15 meeting and calling for Title II reclassification, Preston Padden (he was holding a "Focus on Auction" sign), who heads the coalition, posed briefly outside the front door with a handful of what he described as "concerned citizens" holding signs -- the members of the coalition do not have to identify themselves per FCC rules -- including the related message: "No Spectrum = No Net to Open."

The coalition also does not want the FCC to impose bidding restrictions that could depress prices, but does want the FCC to provide more information on station valuations.

The National Cable & Telecommunications Association told the Federal Communications Commission that while it could live with new network neutrality rules, it could not do so if they were tied to Title II classification of Internet access.

NCTA blogged as much, but made it official with a filing to the FCC that did not bury the lead.

"[T]he existing transparency rules provide a strong foundation for promoting Open Internet principles, and, to the extent the Commission determines that additional safeguards are necessary, the Verizon decision provides ample leeway to adopt such measures pursuant to Section 706 of the Telecommunications Act," NCTA wrote. "In light of that recently confirmed authority, it is wholly unnecessary to pursue a Title II reclassification theory. It also would be immensely destabilizing."

For one thing, that is because Title II would land the new rules in court, NCTA made clear. "At a minimum, pursuing Title II reclassification would plunge the broadband industry into a lengthy period of uncertainty while a new round of appellate proceedings ran its course -- a process that can be easily avoided by relying on the roadmap provided by the Verizon court." NCTA has said it would be at the table to help draft supportable net neutrality rules, as it was the first time. In both instances, a main goal is to avoid the "nuclear option" of Title II.

Sen Tom Udall (D-NM) told the Federal Communications Commission that allowing "toll lanes" on the Internet could "drastically change it," and not for the good.

"I urge the FCC to use its authority to preserve standards that allow the Web to continue to be a platform for free expression, to promote innovation, and help online entrepreneurs compete on a level playing field with established companies," he said.

Gannett has agreed to acquire six Texas stations from London Broadcasting for $215 million.

The stations are KCEN Waco-Temple-Bryan, KYTX Tyler-Longview, KIII Corpus Christi, KBMT and subchannel KJAC in Beaumont-Port Arthur, KXVA Abilene-Sweetwater and KIDY San Angelo. They are a mix of NBC, CBS, ABC and Fox affiliates.

The deal is subject to regulatory approval and is expected to close this summer. The London stations are expected to generate revenue of approximately $50 million in 2014, while the transaction is also expected to provide Gannett with what it called “certain tax efficiencies” related to the sale of KMOV St. Louis. Including expected synergies and the anticipated tax benefit, the purchase price implies a 6.7x average 2014/2015 EBITDA multiple.

Federal Communications Commission Chairman Tom Wheeler was hearing it from his critics on Internet neutrality. But not everyone was joining the chorus of boos. Minority Media & Telecommunications Council executives met with FCC officials to show their support for Chairman Wheeler's draft network neutrality rules.

According to a filing with the commission, David Honig, president of MMTC, and senior counsel Joycelyn James, said their group supports what they called the chairman's middle ground proposal, with its emphasis on Sec. 706 authority.

MMTC said the FCC should not let the debate over net regulations distract it from taking the steps they feel are most important to promoting broadband to their constituency, including ending broadband "redlining," modernizing the E-rate subsidy for broadband to schools and libraries, promoting telehealth, and increasing ownership and employment opportunities.

According to a source familiar with the item, the Federal Communications Commission is proposing to set aside some spectrum exclusively for wireless microphone use after all, but whether it will be enough remains to be seen.

The FCC had signaled wireless microphones would not get any reserved spectrum in the new post-incentive auction 600 MHz band plan, but wireless microphone users, including broadcast news folk, complained loudly.

According to the source, the amended incentive auction band plan would create a standard 11 MHz duplex gap -- between wireless uplink and downlink spectrum -- and set aside 6 MHz of spectrum for unlicensed use, 4 MHz for wireless microphones, and 1 MHz of guard band.