House of Representatives Commerce Committee

The Communications and Technology Subcommittee, chaired by Rep Greg Walden (R-OR), held a hearing to assess the state of media ownership, and the rules that govern it, in the digital age.

Members discussed the Federal Communications Commission’s inaction on the statutorily required 2010 quadrennial review of the media ownership rules, and the commission’s decision to forge ahead with new rules on joint sales agreements (JSAs) and other media ownership changes without the completed quadrennial review.

“Our laws need to reflect the reality of the world we live in today, not the world of the Ford administration,” said Chairman Walden. “As Americans’ habits have changed, so too should the way we look at local media. We live in a competitive landscape where increasingly we cherry-pick articles; we scroll through feeds and aggregators; we have multiple national news programming options, and we DVR almost everything to time-shift the programming we love. It’s a different world, why don’t our media laws reflect these changes?"

David Bank, Managing Director of Global Media Equity Research at RBC Capital Markets, added, “Much is made of the fact that the current regulatory framework for media ownership dates back to 1975. The current regulatory framework was constructed in a media ecosystem that basically didn’t include the Internet. While it may have contemplated a broad PC based Internet consumption environment, it certainly didn’t contemplate a mobile application based ecosystem.”

A group of Republican House members wrote the Government Accountability Office (GAO) requesting an examination of the Obama administration’s recent proposal to transition Internet oversight to the global multi-stakeholder community.

In March 2014, the National Telecommunications and Information Administration (NTIA), an agency of the Department of Commerce, announced its intention to transition oversight of the Internet Assigned Numbers Authority (IANA) root functions to the global multi-stakeholder community.

In the letter, the leaders express concern that the criteria for transition set forth by NTIA may not ensure that the Internet remains free and open in the absence of United States oversight. The members are seeking an examination of the proposed transition and its possible implications to US national security, the potential for other governments to assume the US role post-transition, and any additional concerns the GAO may have about the transition.

The letter was signed by Chairman Upton, Subcommittee on Communications and Technology Chairman Rep Greg Walden (R-OR), full committee Vice Chairman Marsha Blackburn (R-TN), and Reps John Shimkus (R-IL), Mike Kelly (R-PA), and Todd Rokita (R-IN).

House Commerce Committee Chairman Fred Upton (R-MI) and Communications and Technology Subcommittee Chairman Greg Walden (R-OR) wrote to Federal Communications Commission Chairman Tom Wheeler regarding the commission’s work on the spectrum provisions included in the Middle Class Tax Relief and Job Creation Act of 2012.

Among those provisions is the requirement that the FCC work with stakeholders to streamline the approval process for upgrading existing wireless facilities. The committee leaders are writing seeking clarity on the rulemaking process and urging the chairman to act in a way that will accomplish the goals of the statute.

In the letter to Chairman Wheeler, Reps Upton and Walden wrote, “We urge you to take swift action to clarify the terms of Section 6409(a) consistent with the intent of the statute to deliver the benefits of wireless broadband access to all Americans. To ensure that 6409(a) achieves its goal of streamlining the approval of eligible facilities requests the commission should adopt rules that provide consistency for applicants and reviewing authorities alike.” The leaders also expressed the urgency for the commission to identify ways to foster broadband infrastructure deployment.

The Obama Administration announced in March plans for a process that could remove the United States, specifically the Department of Commerce’s National Telecommunications and Information Administration, from its oversight role of critical Internet functions.

Members of Congress are concerned that this move could result in a clampdown on the openness and freedom of the Internet by authoritarian regimes in countries like Russia and China. The Internet has flourished as a model of social connectivity and economic activity since its inception. To preserve freedom and openness as tenets of the Internet’s future, Rep John Shimkus (R-IL) introduced HR 4342, the Domain Openness Through Continued Oversight Matters (DOTCOM) Act of 2014.

Co-sponsored by 10 members of the committee, the legislation requires that the nonpartisan Government Accountability Office study any potential consequences before NTIA may take action. The DOTCOM Act was approved by the full committee on May 8 and is expected to be considered as an amendment to the National Defense Authorization Act.

House Commerce Committee Chairman Fred Upton (R-MI) and Communications and Technology Subcommittee Chairman Greg Walden (R-OR) continued the process leading to an update of the Communications Act with the release of a white paper focused on competition policy.

“On the Internet, everyone from 100 year-old blue-chip companies to startups that are little more than one person with a great idea compete head-to-head. The paper we released today seeks public input on how this dynamic affects competition policy - specifically how the Communications Act, as well as policies at the FCC, promote or limit competition in the marketplace,” said Chairmen Upton and Walden. “We have received great input from our first two white papers, Modernizing the Communications Act and Modernizing US Spectrum Policy, and look forward to continued public response as we work to ensure our laws appropriately reflect the realities of the innovation era.”

The committee encourages the filing of comment on any aspect of competition policy and updating the Communications Act by June 13, 2014.

House Commerce Committee Ranking Member Henry A. Waxman (D-CA) wrote to Federal Communications Commission Chairman Tom Wheeler urging the FCC to move forward with a vote on proposed network neutrality rules.

Rep Waxman supports Chairman Wheeler's proposal to seek comment on adopting no blocking and nondiscrimination rules based on the FCC's authority under Section 706 of the 1996 Telecommunications Act, but calls on the FCC to also propose using its authority under Title II of the 1996 Telecommunications Act as a backup to ensure the rules survive a potential court challenge.

In the letter, Rep Waxman writes "The Internet is a great American success story thanks to our longstanding national commitment to communications policies that prevent broadband providers from acting like gatekeepers online. I urge you and your colleagues to move forward with your Notice of Proposed Rulemaking and to incorporate a Title II backup proposal as part of the item."

House Commerce Committee Republican leaders wrote to Federal Communications Commission Chairman Tom Wheeler regarding the commission’s consideration of reclassifying broadband Internet as a common carrier telecommunications service under Title II of the Communications Act.

Full committee Chairman Fred Upton (R-MI), Vice Chairman Marsha Blackburn (R-TN), Communications and Technology Subcommittee Chairman Greg Walden (R-OR), and Vice Chairman Bob Latta (R-OH) expressed their “grave concern” regarding the potential harm of such an ill-advised and unnecessary change.

The House Commerce Committee approved HR 4342, the Domain Openness Through Continued Oversight Matters Act, to require the Obama Administration to pause on any changes regarding the future of the Internet and allow for an independent evaluation.

The legislation, authored by Rep John Shimkus (R-IL), was drafted in response to the administration’s requests that the Internet Corporation for Assigned Names and Numbers (ICANN) explore ways to remove the United States from its oversight role of the Domain Name System (DNS).

HR 4342 would direct the Government Accountability Office to study the proposed changes and present a non-partisan evaluation before the administration may take action to modify the US Role in the DNS.

“The DOTCOM Act is a question of domestic US policy and ensures that NTIA pause to fully consider the implications and consequences of any proposal they are presented with,” said full Committee Chairman Fred Upton (R-MI).

“The DOTCOM Act is a smart, responsible, and necessary next step in our mission to keep the future of the Internet free, open and the thriving engine of economic activity and social connectivity that it has become,” said full committee Vice Chairman Marsha Blackburn (R-TN). “America cannot surrender leadership of the Internet to a multistakeholder model that could fall into the hands of oppressive foreign governments. The DOTCOM Act simply requires that an independent study of the consequences be undertaken before the administration moves forward. There are no do-overs in this fight to protect the future of the Internet. The stakes could not be higher.”

The committee also approved HR 4572, the STELA Reauthorization Act of 2014, bipartisan legislation that will ensure that 1.5 million subscribers in hard-to-reach areas continue to receive vital broadcast programming. Authored by Communications and Technology Subcommittee Chairman Greg Walden (R-OR), full committee Chairman Fred Upton (R-MI), full committee Ranking Member Henry Waxman (D-CA), and Subcommittee Ranking Member Anna Eshoo (D-CA), the legislation will reauthorize STELA for a period of five years and make a number of targeted reforms to better meet the needs of today’s video marketplace.

Extension of Retransmission Authority for Distant Signals: The bill reauthorizes the retransmission consent provisions for distant signals for five years, ensuring that 1.5 million subscribers in hard-to-reach areas continue to receive vital broadcast programming.

• No More Joint Retransmission Negotiations: Unaffiliated broadcast stations in a single market will no longer be able to negotiate jointly against pay-TV providers. This will help prevent pay-TV subscribers from losing more than one signal during a lapse in retransmission consent agreements.
• Sweeps Prohibition: The bill levels the playing field for cable operators and broadcasters during “sweeps weeks” by removing a government restriction on cable’s ability to drop broadcast signals during the Nielsen ratings periods.
• Repeal of the Integration Ban on Cable Operator-Owned Set-Top Boxes: The bill repeals the Federal Communications Commission’s ban on integrated security CableCARDS in cable-leased set-top boxes. The bill does not include any forward-looking restrictions on the FCC’s ability to promote competition and innovation in the set-top box market.
• Delay on FCC Deadline to Dissolve Joint Sales Agreements: The FCC recently adopted new rules redefining the relationship between broadcasters in a joint sales agreement in a manner that would place some broadcasters over the local television ownership caps. The FCC’s Order would require broadcasters to unwind non-compliant JSAs within two years of the effective date of the order.

The bill changes the unwinding deadline to provide some stability to broadcasters and encourage prompt FCC action on petitions for waiver of the new rules. All broadcasters involved in such non-compliant joint sales agreements (JSAs) will have until the end of 2016 or 18 months after the FCC’s denial of the respective waiver applications to unwind the JSAs, whichever is later. All waiver applications for existing non-compliant JSAs must be filed within 90 of the bill’s enactment.

The Subcommittee on Communications and Technology, chaired by Rep Greg Walden (R-OR), will have a hearing to conduct oversight of the Federal Communications Commission May 20, 2014. Federal Communications Commission Chairman Tom Wheeler will be the sole witness.

“I am pleased that Chairman Wheeler will join us in May,” said Rep Walden. “This will be our first opportunity to directly discuss issues important to our technology economy, including recent proposals regarding the incentive auctions, the latest iteration of the administration’s ill-advised net neutrality policies, and the broadcast joint sharing agreements and media ownership proceedings at the commission. Process reform also remains a top priority for the committee, and we look forward to discussing this with the chairman.”