December 2009

FCC Asks for Additional Comment on High-Cost Universal Service Support

In this further notice of proposed rulemaking, the Federal Communications Commission responds to the decision of the United States Court of Appeals for the Tenth Circuit (Tenth Circuit) in Qwest Communications International, Inc. v. FCC, in which the court remanded the FCC's rules for providing high-cost universal service support to non-rural carriers. While the FCC has long recognized the need for comprehensive reform, the agency is also cognizant that, under the American Recovery and Reinvestment Act of 2009 (the Recovery Act), the FCC must send a National Broadband Plan to Congress by February 17, 2010. The FCC anticipates that changes to universal service policies are likely to be recommended as part of that plan, and that the FCC will undertake comprehensive universal service reform when it implements those recommendations. It will not be feasible for the FCC to consider, evaluate, and implement these universal service recommendations between February 17, 2010, and April 16, 2010, the date by which the FCC committed to respond to the Tenth Circuit's remand. The Commission tentatively concludes, therefore, that the FCC should not attempt wholesale reform of the non-rural high-cost mechanism at this time, but seeks comment on certain interim changes to address the court's concerns and changes in the marketplace. FCC Commissioner Robert McDowell expressed the concern that the notice does not far enough to address the court's concerns saying "I do not think that the Commission's work on the National Broadband Plan should foreclose the Commission from exploring a variety of reform ideas in this matter."

Senate bill would add high-tech brain power at FCC

Sens Olympia Snowe (R-Maine) and Mark Warner (D-VA) introduced a bill on Monday that would allow each of the five Federal Communications Commission commissioners to hire one additional staff member — an electrical engineer or computer scientist. Currently, commissioners are permitted to appoint only three professional assistants and a secretary. Historically, these professional assistants have been legal advisers covering the wireline, wireless, and cable/media sectors

Senate Commerce Considers FTC Nominees

On Tuesday, the Senate Commerce Committee considered the nominations of Julie Simone Brill and Edith Ramirez to be commissioners at the Federal Trade Commission.

Committee Chairman Jay Rockefeller (D-WV) noted that Ms Brill has spent her career in state Attorneys General offices advocating on behalf of consumers and said he hoped she will help the FTC work more closely with state Attorney General divisions to leverage and increase enforcement against those who target consumers, especially the most vulnerable. Ms Brill said, "The FTC has been cracking down on those who hunt for easy prey. We can build on this work, and focus on the dramatic rise in scams designed to take advantage of consumers' economic insecurity. At the same time, we must continue our efforts to educate consumers so they can better protect themselves by making responsible choices."

Ms Ramirez has extensive experience in complex business litigation. Chairman Rockefeller said, "I appreciate her critical eye for mergers and business combinations which may potentially harm consumers. Ms Ramirez said, "Now, in these difficult economic times, the need to be vigilant and aggressive in protecting American consumers is especially pressing. The Commission's duty to combat deceptive and unfair business practices and to foster competition has never been greater, particularly in the areas that have the greatest impact on the daily lives of ordinary Americans such as financial services, healthcare, energy, and technology."

Comcast Unveils Online Viewing

Comcast subscribers can now watch several cable TV shows and movies on the Internet. Viewing is only available to subscribers, and what each customer can watch depends on the cable TV package subscribed. All told, Comcast is making programs available from 27 cable channels including HBO and Cinemax. "The launch of the TV Everywhere model indicates that Comcast wants competition nowhere," said Marvin Ammori, a professor of law at University of Nebraska at Lincoln and a senior advisor to Free Press. "These are transparent efforts to preserve the cable cartel that gouges consumers. Comcast wants to be the gatekeeper to the video programming world. This service is a threat to innovative online video and an attempt by the industry to impose the cable-TV model onto the Internet."

FCC Wants To Close Program Loopholes

The Federal Communications Commission is considering closing a loophole that allows cable television operators to withhold sporting events and other popular programming that they own from rival providers such as satellite TV. FCC staff has prepared an order to eliminate the loophole and plans to send it to the agency's five commissioners on Wednesday. It was not immediately clear when the commissioners will vote on the order. The order comes as the commission begins its regulatory review of Comcast's proposal to buy a controlling stake in NBC Universal from General Electric Co. Although the two matters are separate, some analysts expect the FCC to close the terrestrial loophole for Comcast as a condition of regulatory approval for that deal. Cable TV operators including Comcast Corp. and Cox Communications Inc. have relied on the loophole to deny programming to competitors such as DirecTV Inc., Echostar Corp.'s Dish Network and AT&T Inc. U-Verse video service.

US agencies want to ban some kid food ads

In a bid to tackle rising youth obesity, US companies would be prohibited from advertising to children foods that contain large amounts of sugar or salt, or even low levels of trans fats, under a proposal released on Tuesday by a working group from several US agencies. The working group made up of members of the Food and Drug Administration, Federal Trade Commission, Department of Agriculture and Centers for Disease Control issued what it called tentative proposed standards for food marketed to children, defined as up to age 17. Those foods could not have more than 1 gram of saturated fat per serving, 13 grams of added sugar, 200 milligrams of sodium or 0 trans fats, which they defined as more than half a gram, per normal serving. At a related conference to discuss food advertising and any link it might have to obesity among children, Kathleen Sebelius, secretary of Health and Human Services, said that if the obesity-related health risks -- high blood pressure and diabetes among them -- were caused by radiation "alarm bells would be going off across America. There would be a huge outcry."

Government Group Proposes New Kids Nutrition Regulations

The Interagency Working Group (IWG), comprising representatives from four government agencies, has unveiled tentative, proposed standards for marketing food to children between the ages of 2 and 17. The proposal was outlined at the end of an all-day Federal Trade Commission public hearing on food marketing and childhood obesity. The IWG -- comprising the FTC, the Department of Agriculture's Center for Nutrition Policy and Promotion, the Centers for Disease Control and the Federal Drug Administration -- has been charged with developing recommended nutritional standards for consumers under 17 by July.

The core proposed standards outlined include:

  1. Standard I foods: A group of foods that would be exempt from the Standards II and III. Standard I foods would include 100% fruit and fruit juices in all forms and 100% vegetables and vegetable juices in all forms (as long as the vegetables/vegetable juices do not exceed 140 mg of sodium per "RACC," or Referenced Amount Customarily Consumed, as defined by the FDA). 100% is defined as no added nutritive or non-nutritive sweeteners, and no other functional ingredients added to the product (with the exceptions of flavoring for water, milk and yogurt).
  2. Standards II and III below are meant to work together, not separately, according to the IWG. Standard II foods: These are foods that must provide a "meaningful contribution to a healthful diet" for children. The IWG is considering, and asking for input on, two possible options under this standard: Under "Option A," Standard II foods would need to contain at least 50%, by weight, of one or more of the following: fruit, vegetables, whole grain, fat-free or low-fat milk or yogurt, fish, extra-lean meat or poultry, eggs, nuts and seeds, or beans. Under "Option B," Standard II foods would need to contain one or more of the following, per RACC guidelines: 0.5 cups fruit or fruit juice; 0.6 cups vegetables or vegetable juice; 0.75 oz. equivalent of 100% whole grain; 0.75 cups milk or yogurt or 1 oz. natural cheese or 1.5 oz. processed cheese; 1.4 oz. meat equivalent of fish or extra-lean meat or poultry; 0.3 cups cooked, dry beans; 0.7 oz. nuts or seeds; or one egg or egg equivalent.
  3. Standard III foods: These are nutrients to be limited. Saturated fats would be limited to 1 gram or less per RACC and not more than 15% of calories. Trans fats would be limited to zero grams (less than 0.5 grams) per RACC. Sugar would be limited to no more than 13 grams of added sugars per RACC. (For foods with a small RACC -- 30 grams or less, or two tablespoons or less -- these criteria refer to the amount per 50 grams of food.) Sodium would be limited to no more than 200 mg per portion. This is described as an "interim" level; the goal over time would decrease to 140 mg per RACC.

House Passes CALM Act, Considers Local Community Radio Act

The House of Representatives passed H.R. 1084, the Commercial Advertisement Loudness Mitigation Act (CALM Act). The bill will require the Federal Communications Commission to prescribe a standard to preclude commercials from being broadcast at louder volumes than the program material they accompany. The House also considered H.R.1147, Local Community Radio Act of 2009, which would implement the recommendations of the Federal Communications Commission report to the Congress regarding low-power FM service. A vote on the legislation was postponed.

PTC Files Indecency Complaint About 'Family Guy'

The Parents Television Council has filed an indecency complaint against Family Guy, a show that is frequently in PTC's dog house over its edgy content. This time, PTC is complaining about the Dec. 13 episode featuring a scene with a stripper.

Satellite Bill Extension Said To Be On Table In House

According to several sources, Congress may punt on reauthorizing the satellite distant signal license before Dec 31, instead passing a 60-day (some say 90) stop-gap extension. The problem is in the Senate, where a provision allowing DISH network back into the distant signal business in exchange for delivering local signals to all 210 markets is said to have caused at least one senator to put a hold on the Senate version of the bill. Both a 60-day extension and the full bill including DISH provision are ready to be teed up for a House vote tomorrow, but legislators there are said not to want to pass the full version if it is going to be controversial, which it would be, given the hold on the Senate bill.