August 2008

Copps, Adelstein Seek FCC Temp Job

If Barack Obama is elected president this fall, come January, he will likely name one of the two sitting Democratic FCC commissioners to replace temporarily the outgoing Republican Kevin Martin as chairman of the agency. But which one? Michael Copps or the like-minded Jonathan Adelstein. According to insiders, each is waging a low-key campaign to capture the post, which brings with it the power to control the staff and set the agenda of the agency. "Both are political animals and they both would like to be chairman," says an FCC insider. The interim or acting chairmanship may last only a few months -- just long enough for Obama to nominate a permanent chairman and for the Senate to confirm him or her. But it could last considerably longer.

DOJ Rejects Sinclair's Purchase of WTVR

The Department of Justice has rejected Sinclair Broadcast's planned $85 million purchase of WTVR Richmond (VA) from Raycom Media. According to Sinclair, the DOJ acted pursuant to a consent decree that Raycom entered into with the DOJ when it purchased three stations from Lincoln Financial earlier this year. The decree empowered the DOJ to reject unilaterally any deal involving WTVR. Sinclair had hoped to set up a virtual CBS-Fox duopoly in Richmond, the 59th largest TV market. In June 2008, when Sinclair announced that it had agreed to buy WTVR, a CBS affiliate, it also said it would sell its existing Fox affiliate in the market, WRLH, to Carma Broadcasting. But, under an agreement with Carma, Sinclair said it would have provided sales and other non-programming related services to WRLH and operated it in tandem with WTVR. Sinclair said that it believes that the proposed transaction would not have violated the antitrust laws.

McDowell Taps Harold for Media Issues

Federal Communications Commission member Robert McDowell announced that Rosemary Harold will be joining his staff as Legal Advisor for media issues. Harold has worked at the Commission since December 2005, most recently as Deputy Chief of the FCC's Media Bureau. Before coming to the Commission, she was a partner in the law firm of Wiley Rein and Fielding, LLP, representing clients before the FCC, FTC and FDA. Prior to practicing law, Ms. Harold was a professional journalist. Ms. Harold received her J.D., magna cum laude, from Georgetown University Law Center, her M.A in journalism from the University of Missouri, and her B.A. from the College of William and Mary.

FCC takes year to reject one-page forbearance request

The Federal Communications Commission's "forbearance" follies continued this week, provoking the ire of the agency's two Democrats. They want to know why the FCC took a full year to deny the bare bones petition of a South Dakota based telco that probably wanted permission to raise its connection rates. "Probably" because OrbitCom of Sioux Falls' one page application didn't explicitly say that it was asking for a rate hike, didn't provide any details about its prices, didn't disclose what firms the company competes with, or explain why the probable rate boost would not hurt rural consumers. The OrbitCom petition "fails to address in any manner the statutory criteria for a grant of forbearance," the FCC ruled on Wednesday. But the agency did not explain why it took so long make the obvious decision about the bid.

What We Need Is A Digital Bill Of Rights

As the Democrats and Republicans gather at their national conventions, it is time to really think about a comprehensive national technology policy for the Internet Age. Many laws and policies governing the Internet and digital property are inadequate attempts to transplant rules from a different era. The problems that arise are not just about Net Neutrality (see Comcast) or copyright infringement or digital privacy. They are about all of these things. What we need is a Digital Bill of Rights that spells out what freedoms and rights consumers can expect from Internet service providers, content companies, device manufacturers, and the government itself. Both Presidential candidates have already outlined their technology platforms. (Obama did so last year; McCain only got around to unveiling a formal tech policy earlier this month. Both Obama and McCain also spoke to TechCrunch about their thoughts on tech policy during the primaries). But McCain's technology platform is a bit vague, and Obama's choice of tech-challenged Joe Biden as his running mate is not exactly a confidence builder. The fact is that nobody in either party has pulled together a focused set of principles that can truly guide both lawmakers and policymakers. It's a tall order, but it is important to have a consistent policy governing everything from Internet Protocol regulations to intellectual property on the Web. Here's a first stab at such a bill of rights: The Right to Use and Reuse Content; The Right To Control Digital Property On Your Own Device; The Right To The Free Flow Of Information; The Right To (Some) Privacy; and The Right to Control Your Digital Identity.

FCC Commissioner targets media consolidation

The Federal Communications Commission is beholden to media conglomerates to the exclusion of minority- and women-owned media companies, FCC Commissioner Jonathan Adelstein said in Denver. "I think we've really fallen down on the job in the last eight years," Adelstein said at a Symposium on Media and Democracy sponsored by Common Cause. "We've forgotten that the airwaves belong to the public and not to special interests." Commissioner Adelstein was a staffer to several Democratic senators before his appointment to the commission in 2002. He said he has pushed against a majority on the panel for regulations restricting cross-ownership of media properties in local markets. "Fewer and fewer companies are consolidating control of the means of creating and distributing ideas. Ownership is the key to getting yourself heard," he said. Media companies have pushed for ownership of newspapers, TV stations and radio stations in the same market during a time of dwindling ad revenues and intense competition from the Internet. But in an interview after the forum, Commissioner Adelstein said pairing "ailing newspapers with ailing broadcast stations" is not the solution.

Tech Groups Launch 'One Giant Leap' Campaign

A handful of education and education technology associations launched a print and radio public service announcement campaign on Wednesday themed "One Giant Leap for Kids" that asks the presidential candidates to make K-12 student access to ed-tech and modern learning environments a top national priority. The PSAs will be sent to campaigns of Sens. John McCain and Barack Obama along with five questions about each candidate's vision for the future of the modern classroom.

Former FCCer Slams McCain

Former FCC Chairman Reed Hundt blasted presumptive Republican presidential nominee John McCain at a Tuesday forum in Denver, saying it is "a gross understatement" to state that the Arizona senator "doesn't get it" when it comes to crafting technology policies that will help advance U.S. innovation. Hundt, who led the FCC for most of the President Bill Clinton's first term, said McCain is "actually is committed to goals in government that are pernicious." One recent example, Hundt argued, was McCain's sponsorship of legislation that would have gutted the recently completed auction of frequencies on the 700-MHz band by handing over the spectrum to one private entity. Six weeks ago, McCain said he still believes in that concept, Hundt said. McCain's plan would amount to "a $30 billion dollar giveaway" to a single corporate interest, the former FCC chief noted.

Whither the Internet?

Last November, hundreds of government, industry leaders and Internet activists from around the planet gathered in Rio de Janeiro for the second Internet Governance Forum. Attendees were invited to complete an online survey about their views of the role of the Internet around the world and how about how governments and other regulators should structure policy about the Internet. Respondents indicated strong support for the establishment of a global Internet users Bill of Rights. Some 66% of those participating in this survey agreed with the statement: "A global Internet Bill of Rights should be adopted." Only 6% disagreed. Some key planks of the Bill of Rights would be: freedom of information, freedom of expression, and the right of people to have affordable access. Some 76% of respondents supported freedom of information as a core ethic of online life and 75% agreed that such a policy ensuring freedom of expression on the Internet should be adopted. On the other side of the issue, 62% of respondents said they believe content controls weaken the Internet. And by a 59%-28% margin, they disagreed with the statement, "My country should have the right to approve the Internet content available to the people of my country."

Grim outlook for US IT spending

US companies are pulling back hard on IT spending as the economic downturn continues, a new study by ChangeWave Research has found. Thirty percent overall reported that third-quarter IT spending was lower than previously planned, an increase of three percentage points since ChangeWave's May spending survey. Meanwhile, only 12 percent spent more than planned. In addition, 29 percent said spending will drop or even cease in the fourth quarter, a 5 percent increase over the last study. Thirteen percent plan to spend more.