John Eggerton
Sens Propose TV Station Relocation Fund
The National Association of Broadcasters is praising a bipartisan effort by a handful of senators to make sure there is enough money to cover the costs of TV station moves after the spectrum auction and that stations can't be forced to meet a moving deadline for reasons beyond their control. But it would also impose a "penalty" on stations that did not meet the deadlines of a phased transition absent those extenuating circumstances. There is currently a $1.75 billion relocation fund, which is looking larger every time the Federal Communications Commission reduces the amount of spectrum it is reclaiming from broadcasters in the auction and thus increases the space in which to repack stations—the FCC is now in its third reduction.
But in case that does not prove sufficient, Sens Jerry Moran (R-KS), Brian Schatz (D-HI), Roy Blunt (R-MO), Tom Udall (D-NM), Deb Fischer (R-NE), and Richard Blumenthal (D-CT) have drafted a bill, the Viewer Protection Act of 2016, that would create a Viewer Protection Fund. Rep Frank Pallone (D-NJ) proposed a similar discussion draft last January, putting a figure of $1 billion on the fund. The senators did not have a figure in mind, at least not in the draft NAB supplied, but simply such sums as "are necessary to provide reimbursements for relocation costs to 1 or more broadcast television licensees" if the initial funds are exhausted.
FCC Speeds Reverse Auction for Stage Four on Dec 13
The Federal Communications Commission is hoping the fourth time is the charm. The commission said that it will start stage four of the reverse portion of the broadcast incentive auction Dec 13, as planned, and when it is done that spectrum will be uniform across all markets and totally unimpaired.
The FCC is also goosing the process with shorter rounds to begin with (one hour instead of two) and will move more swiftly (starting Dec. 19) from two rounds to three rounds per day. In this round, the spectrum-clearing target is 84 MHz, down from 108 MHz in stage three, 114 MHz in stage two and 126 MHz in stage one as the FCC tries to find a clearing target/price point that broadcasters and wireless companies can agree on. The auction is designed for multiple rounds.
Verizon General Counsel: We Still Support Net Neutrality
Verizon general counsel Craig Silliman says his company supports the principles of network neutrality, but the current fight is about "the jurisdictional hook the [Federal Communications Commission] used to get there." He also says zero rating is nothing new and likens it to Amazon’s free shipping. Verizon was a key player in the ongoing fight, having filed a court challenge to the initial, compromise, non-Title II approach to net neutrality rules that the FCC struck with other Internet service providers under then FCC chairman Julius Genachowski.
But Silliman pointed out that before the court decisions, Verizon had favored Congress weighing in and codifying the net neutrality principles to "put the whole Title II debate behind us." He suggested that the end game for some activists had always been Title II, so they fought a congressional solution. He said in hindsight—that being a new Donald Trump Administration almost certain to roll back Title II—that was probably a "bad political calculation." He said net neutrality principles are still important but can be protected in a "much smarter, much more efficient way" than the FCC's effort, which he characterized as trying to put square pegs into round holes and said applies broadly to issues of FCC jurisdiction, the sort of issues congressional action could have cleared up.
RNC Joins Trump in Media Bashing
The Republican National Committee is getting in on President-elect Donald Trump's media bashing. The Trump campaign committee and the RNC have teamed up on a funding solicitation offering a Trump Inaugural Membership Card for a minimum donation of $35 toward paying off campaign expenses for the general election. The pitch is that "membership" will help provide funds to "fend off the media’s attacks, deliver our message to the voters, and help advance President Trump’s first 100 Days agenda." Trump has not let up on his disparaging comments about the media since being elected, taking aim at CNN, the New York Times and SNL, among others.
American Cable Association Pins Hopes on McMahon
The American Cable Association, whose membership comprises hundreds of small businesses, was pleased with President-elect Donald Trump's choice of Linda McMahon as administrator of the Small Business Administration, which Trump has made a cabinet level position. ACA's mission has been to inform Washington of the special challenges and disproportionate costs of regulation on those small businesses. “ACA believes that Linda McMahon, a sports industry pioneer with the experience of building a small business from the ground up, is an excellent choice to lead the SBA to help smaller companies resume their role as engines of economic growth and job creation," said ACA President Matt Polka. "She’s on record as opposing government mandates that burden smaller companies and understands that government should not needlessly stand in the way of small businesses’ efforts. ACA looks forward to working with SBA Administrator-designate McMahon following her Senate confirmation.”
Alongside her husband, Vince, McMahon helped build WWE from a 13-person operation to a global brand with more than 800 employees. McMahon is currently CEO of Women's Leadership Live, which promotes entrepreneurship.
Hoffman, Grimaldi Tapped for Media Institute Board
Dave Grimaldi, executive VP at the Interactive Advertising Bureau, and Adonis Hoffman, chairman of Business in the Public Interest—both former chiefs of staff to Commissioner Mignon Clyburn of the Federal Communications Commission—have joined the board of trustees of The Media Institute, the first amendment think tank supported by media companies.
Mike Regan, a long-time trustee and formerly executive VP of global policy for 21st Century Fox, has been elected chairman of the board's executive committee. “Dave Grimaldi and Adonis Hoffman are Washington veterans who bring a wealth of experience to The Media Institute,” said Patrick Maines, president of the institute, in announcing the additions and election. The board is chaired by Wiley Rein senior partner and former Federal Communications Commission Chair Dick Wiley.
House Passes Veterans Broadband Access Bill
The House has passed a bill with a directive likely to get action in a Trump Federal Communications Commission given the President-elect's commitment to helping out veterans. The Improving Broadband Access for Veterans Act of 2016 (HR 6394) passed the House on suspension of the rules, a way to fast-track noncontroversial bills that limits debate, prevents amendments, and requires a 2/3 majority for passage.
It requires the FCC to study and report back to Congress on the availability of broadband access to veterans. The FCC has a year from enactment--the bill still needs to pass the Senate and be signed by the President--to report back to Congress on access, particularly for low-income vets and ones living in rural areas, where there is the toughest business case for building out networks. But the FCC would have to do more than produce a state of the marketplace report. Congress wants recommendations on how to promote access. The FCC won't have the full year to work on the report. It is required to put it out for public comment before submitting it.
Ray Baum Named House Commerce Committee Chief of Staff
Incoming House Commerce Committee Chairman Greg Walden (R-OR) has named Ray Baum, formerly senior policy advisory and chief strategist for the committee, as the committee's new staff director. He replaces Gary Andres.
Baum was named VP of government relations for the National Association of Broadcasters in March. Baum was a senior advisor to Rep Walden, who has been chair of the Communications Subcommittee, when he came to Washington in 2011. He got an expanded role as senior policy advisor to the full committee in 2013. Baum was also majority leader of the Oregon House of Representatives---he and Rep Walden were elected to the Oregon State House in 1988. Before that he was a commissioner with the Oregon Public Utility Commission, including chairman in 2010. He was also chairman of the National Association of Regulatory Utility Commissioners Telecommunications Committee. Baum's name surfaced as a candidate for the Republican seat of Commissioner Robert McDowell of the Federal Communications Commission back in 2013, a post that ultimately went to Commissioner Michael O'Rielly.
The Word Network Aims FCC, FTC Complaints at Comcast
The Word Network has filed complaints against Comcast at the Federal Communications Commission and Federal Trade Commission over Comcast's reduction of its carriage, a representative for the network confirms. Word Network wants the FCC and the FTC to investigate "[t]he unjust removal of The Word Network," as well as diversity and retrans-related issues. The Word Network is a religious network targeted to African Americans. The network said after it contacted Comcast about the carriage reduction and asked the reason, it was told "because we are Comcast, and we can." Comcast executives speaking on background said that was not accurate.
Groups Want FCC's Rosenworcel Out, Then Back In
Some deregulatory groups are trying to prevent a possible "compromise" vote on the renomination of Democratic Commissioner Jessica Rosenworcel of the Federal Communications Commission, suggesting instead that she leave the commission after the current congress but return during the next.
TechFreedom and the Competitive Enterprise Institute have joined with a couple of others in a letter to Senate Majority Leader Mitch McConnell (R-KY) and Minority Leader Harry Reid (D-NV) to say they supported Commissioner Rosenworcel's renomination but not if it creates a deadlocked 2-2 commission. Additionally, the did not support a remonidation before FCC Chairman Tom Wheeler leaves to remove the possibility of a Republican President and a Democratic majority on the FCC. That means they want Commissioner Rosenworcel to have to leave the FCC after the lame duck but then be returned to her seat after a new chair or third Republican commissioner is seated. They say they expect Commissioner Rosenworcel to be a "constructive participant" in reforming the FCC under a Republican majority but don't want her continued presence on the commission to prevent that majority during the transition.