Just after Christmas, the FCC gave a number of broadcasters the equivalent of coal in their stocking – fining six different licensees for violations of the FCC’s EEO rules.  The fines issued that day ranged between $7,000 and $20,000, and included penalties issued to major broadcasting companies including Fox and Cumulus.  Also included were fines against Urban Radio in New York City and Puerto Rico Public Broadcasting – demonstrating that the FCC’s EEO rules, adopted in late 2002 after previous rules were declared unconstitutional essentially on "reverse discrimination" grounds (as they encouraged broadcasters to make hiring decisions not based on qualifications but instead based on race or gender), are truly race and gender blind.  It would be logical to assume that Urban Radio and Puerto Rico Public Broadcasting both had significant numbers of minority-group members on their staffs but, as they could not demonstrate that they had complied with the new rules requirements to reach out to all groups in their communities (as opposed to just racial or gender focused groups), they were assessed fines.  Reporting conditions, requiring that the broadcasters regularly file reports with the FCC so that their EEO efforts can be monitored, were also imposed.  All of the decisions can be found on the FCC’s Daily Digest for that day, here.

The basis of all of these fines was the failure of the licensees to be able to demonstrate that they had "widely disseminated" information about all of their job openings.  The core of the 2002 EEO regulations was the requirement that licensees broadly disseminate notice about their job openings in such a way so as reach all of the significant groups within the community that the station serves.  The Commission was not looking to specifically force minority hiring, but instead to push for hiring from diverse sources.  The Commission wanted to push broadcasters to use recruitment sources beyond the existing broadcast community – so that hiring was not simply done by word of mouth or from within other professional broadcast circles.   Thus, the rules require that broadcasters use recruitment sources that reach out to various groups within their community and document those efforts. 

Continue Reading FCC Fines Multiple Broadcast Stations for EEO Violations – Fines Up to $20,000 Imposed

A day after the Obama transition team wrote to Congress suggesting that the DTV transition now scheduled for February 17 be delayed, there are indications that a bandwagon effect is beginning to develop in favor of such a delay.  Broadcasting and Cable magazine’s website reports that the four major TV networks have indicated that they support a delay in the transition if it will better serve their viewers, and that Senator Rockefeller has started drafting legislation to delay the transition.  The New York Times featured a guest editorial from two former FCC Chairmen – Republican Michael Powell and Democrat William Kennard – supporting the delay (and mentioning one of the same issues that we had mentioned the day before – the need for education of consumers about the need for different antennas to receive the digital signal).  But others are not so sure that a delay makes sense.

While the NY Times editorial may make it look like the delay request is a bipartisan effort, there are other indications that there is at least some evidence of partisan differences beginning to develop.  The NY Times today quotes Joe Barton, a senior Republican on the House Energy and Commerce Committee, as opposing a change.  Republican FCC Chairman Kevin Martin is quoted by the Associated Press as saying that the delay will confuse consumers, while Democratic Commissioner Jonathan Adelstein is quoted in the same article as being sympathetic to the postponement.  While the political groups are taking sides, many in industry seem reluctant to delay the transition date. 

Continue Reading More Evidence that a Digital Television Conversion Delay May Be On Its Way – But There is Opposition

What a difference a few days makes.  At the beginning of this week, it was full speed ahead for the February 17 termination of analog television.  Then NTIA announced that it was out of money to pay for DTV coupons to assist the public in buying converter boxes so that analog TV sets will continue to work after the transition.  This action, in turn, caused Consumers Union to ask Congress for a delay in the transition, resulting in Congressman Markey’s office suggesting that the DTV transition might need to be delayed (as we wrote yesterday).  Today, the other shoe dropped as the Obama transition team formally wrote to Congress asking for a delay of the termination of analog television.  That letter leaves everyone asking – will Congress respond?  If so, what are the ramifications?

The NAB responded with a press release talking about how broadcasters are still prepared to meet the deadline, and how the deadline has focused all parties (TV stations, electronics manufacturers, cable and satellite companies) on doing what they need to do in order to be ready for the transition.  But the Obama team’s call for the postponement does not seem to be focused on the readiness of program providers to accomplish the switch, but instead on the readiness of viewers to deal with the new digital environment, especially given the lack of coupons for last minute shoppers still waiting to buy their converter boxes.  As we’ve written before, many in Washington are worried about the political ramifications of the transition – especially if millions of people wake up on February 18 and can’t watch the Today Show or Good Morning America.  And while that is a legitimate concern, one wonders if it will ever be possible to prepare everyone for the transition deadline.  Sure, if the deadline is postpone 4 or 5 months, there will be a marginal increase in people who are ready, but there will still be stragglers.  Catching up to them all may never happen until they are hit with the reality of their analog sets not working on the day after the transition, whenever that day may be.  If so, shouldn’t someone at least consider the costs that a delay will impose on broadcasters? 

Continue Reading Obama Transition Team Requests Delay of DTV Transition Deadline

Several press reports were issued today suggesting that there is at least some consideration in Congress of delaying the DTV transition now scheduled to be completed on February 17.  The consideration stems from the announcement that the NTIA (the National Telecommunications and Information Administration) had run out of money to issue the $40 coupons to consumers to subsidize the purchase of converters that allow analog television sets that receive over-the-air signals to process digital signals so that these sets can continue in operation after February 17.  While NTIA has not actually spent all the money Congress has allotted for the converter boxes, as almost half of the coupons that have been issued have not been redeemed, NTIA is required to withhold the money until the coupons have either been spent or expired (the coupons are good for only 90 days).  Thus, while some people may still be able to receive the coupons in the future after currently issued coupons expire without having been used, it may be too late for consumers to use those coupons to buy a converter box before the February deadline.  Fearing that some groups will be disenfranchised by the loss of television service, the Consumers Union sent a letter to Congress (here) asking that the transition be delayed until coupons can be made available to all who need them, and reports indicate that Congressman Markey’s office (who heads the House Subcommittee that deals with broadcast issues) is considering that request.

Could a delay really occur?  While broadcasters have been diligently working to meet the deadline, a delay could allow implementation of some of the last minute technical fixes for areas that may lose service because of the transition (as we suggested here in our discussion of the recently approved analog nightlight, Digital low power translators, and distributed transmission service that were recently permitted).  Some may oppose the delay but, with the nightlight already delaying the availability of the open spectrum for 30 days, a brief delay really would not make all that much difference.  Those planning on using the vacated spectrum within the TV band for "white spaces" devices cannot do so yet because of additional regulatory issues that must be addressed (see our post here).  The principal parties who would be disadvantaged by the delay would be those who bought at an FCC auction the spectrum being cleared by the move of TV stations currently operating on channels 52 and above into lower channels in the DTV ‘core".  Would Congress be willing to put the new services planned by these spectrum buyers on ice while the last-minute DTV issues get ironed out?  The next few days may provide an answer as we see if these rumors are just a case of last minute nerves, or if they represent a real attempt to provide time to smooth out the digital transition. 

2009 – a new year, and a whole new cycle of regulatory requirements.  We wrote last week about the potential for changes in regulations that may be forthcoming but, like death and taxes, there are certain regulatory dates each year that broadcasters need to note and certain deadlines that must be met.  Those dates are set out in our advisory – Important Dates For Broadcasters in 2009 – a calendar of the year’s regulatory filings.  Dates include the deadlines for routine FCC filings – ownership reports, children’s television reports, quarterly issues programs lists, EEO Public File reports, etc.  Dates for the payment of royalties for Internet radio streaming operations are also included, as well as the lowest unit rate windows for upcoming gubernatorial races in New Jersey and Virginia.  And the all-important DTV deadlines are also listed.  So, to keep track of your regulatory obligations, check out our broadcaster’s calendar, here. 

The Copyright Royalty Board today published a notice in the Federal Register announcing the start of its next proceeding to set the royalties to be paid by Internet radio operators for the performance rights to use "sound recordings" (a particular recording of a song as performed by a particular performer) pursuant to the statutory royalty.  As we’ve written extensively on this blog, the statutory royalty allows an Internet radio station to use any publicly released recording of a song without the permission of the copyright owner (usually the record company) or the artist who is recorded, as long as the station’s owner pays the royalty – currently collected by SoundExchange.  In 2007, the Copyright Royalty Board set the royalties for 2006-2010, a decision which prompted much controversy and is still under appeal.  In the Notice released today, the CRB set February 4 as the deadline for filing a Petition to Participate in the proceeding to set the royalties for the next 5 year period.

The 2006-2010 royalties are currently the subject of negotiations as the parties to the last proceeding attempt to come to a voluntary settlement to set royalties that are different than those established by the CRB decision.  The Webcasting Settlement Act (which we summarized here) gives webcasters until February 15 to reach an agreement as to rates that would become an alternative to the rates that the CRB established.  The Act also permits parties to reach deals that are available not only for the 2006-2010 period, but also allows the deals to cover the period from 2011-2016.  Thus, theoretically, webcasters could all reach agreements with SoundExchange to establish rates that cover the next royalty period, obviating the need for the proceeding of which the CRB just gave notice.  But, as is so often the case, those settlements may not be reached (if they are) until the last minute – so parties may need to file their Petitions to Participate before they know whether a settlement has been achieved.

Continue Reading Here We Go Again – Copyright Royalty Board Announces Date for Filing to Particpate in Proceeding to Set Webcasting Royalties for 2011-2015

The FCC’s Notice of Proposed Rulemaking on Digital Fill-In Translators, to provide television service in areas where a television station’s digital signal does not reach locations that were covered by its analog operations (a proposal we summarized here) was published in the Federal Register today, setting comment dates on this proposal.  Comments are due on January 12, and Replies on January 22.  As the Commission has already published instructions for filing for temporary authority to operate these stations, broadcasters who are interested in the final rules that may be adopted should look to file comments on these matters before the January 12 deadline.  This is another proceeding that is being rushed through the Commission in anticipation of the February 17 end of the digital television transition.

The analog nightlight proceeding is on an even faster track, with comments due on Monday (see our summary of that proceeding here). The Commission has just released a tentative agenda for its January 15 meeting, where the only item it will consider (other than reports from the Commission’s various Bureau Chiefs) will be the analog nightlight proposal.  This is likely to be Chairman Martin’s last meeting as chair of the FCC.  In light of the Congressional mandate to complete this proceeding by January 15, the Commission will have received comments and replies and digested them into a decision – all in the space of  20 days from the release of its Notice of Proposed Rulemaking – with the Christmas and New Years holidays intervening!  If anything, this shows two things – that the FCC can move rapidly if it has to, and that the DTV transition is the one and only real priority on the full Commission’s agenda right now. 

Continue Reading TV Digital Transition Rushes On – Comment Date on Proposals for Digital Fill-In Translators Set for January 12 and Analog Nightlight to Be Approved at January 15 Commission Meeting

Come the New Year, we all engage in speculation about what’s ahead in our chosen fields, so it’s time for us to look into our crystal ball to try to discern what Washington may have in store for broadcasters in 2009. With each new year, a new set of regulatory issues face the broadcaster from the powers-that-be in Washington. But this year, with a new Presidential administration, new chairs of the Congressional committees that regulate broadcasters, and with a new FCC on the way, the potential regulatory challenges may cause the broadcaster to look at the new year with more trepidation than usual. In a year when the digital television transition finally becomes a reality, and with a troubled economy and no election or Olympic dollars to ease the downturn, who wants to deal with new regulatory obstacles? Yet, there are potential changes that could affect virtually all phases of the broadcast operations for both radio and television stations – technical, programming, sales, and even the use of music – all of which may have a direct impact on a station’s bottom line that can’t be ignored. 

With the digital conversion, one would think that television broadcasters have all the technical issues that they need for 2009. But the FCC’s recent adoption of its “White Spaces” order, authorizing the operation of unlicensed wireless devices on the TV channels, insures that there will be other issues to watch. The White Spaces decision will likely be appealed. While the appeal is going on, the FCC will have to work on the details of the order’s implementation, including approving operators of the database that is supposed to list all the stations that the new wireless devices will have to protect, as well as “type accepting” the devices themselves, essentially certifying that the devices can do what their backers claim – knowing where they are through the use of geolocation technology, “sniffing” out signals to protect, and communicating with the database to avoid interference with local television, land mobile radio, and wireless microphone signals.

Continue Reading Gazing Into the Crystal Ball – The Outlook for Broadcast Regulation in 2009

In its rush to complete the "analog nightlight" program rules in time for television stations to make plans for the February 17 end date for analog television, and to comply with a statutory mandate to have the program in place by January 15, the FCC will require some people to work through their New Years Weekend to have comments to the FCC by Monday, January 5.  Federal Register publication of the Commission’s Notice of Proposed Rulemaking on this proposal took place today.  We wrote about the program to allow some analog television stations to operate for 30 days after the end of the digital transition, to carry emergency information and to inform viewers who missed the message on the digital conversion about what they need to do to receive digital television, and about some of the issues posed by the FCC, here.  Reply comments on this proposal are due three days later –January 8. 

As the comment date is also when stations who were not included on the original list of those who automatically qualify for nightlight status are supposed to ask to be included and show how they will protect digital television operations, some engineers will also need to be busy this weekend.  With this short response time, station operators need to quickly get going on the comments due on Monday. 

Last week, the FCC introduced a new service to fill in gaps in the service of a digital television station – permitting television stations to immediately apply for Special Temporary Authority to construct digital translators.  Translators rebroadcast the signal of a full-power station, but operate on a channel different than the main station they retransmit.  The Commission has already authorized stations to operate on-channel low-power facilities in the Distributed Transmission Service (DTS) proceeding, about which we wrote here.  The digital translators, however, will only be authorized to serve areas that had received analog service from the television station but which will lose that service when the station goes fully digital, thus raising questions as to how much use these stations will really be.  In a Public Notice released today, providing filing information for these translators, the Commission states that the translators can only serve this loss area.  While the authorization of this Digital Low Power Television Translator service will begin immediately on an STA basis, the Commission’s order came out only in a Notice of Proposed Rulemaking, which could ultimately be rejected by the Commission after public comments are submitted.

The Commission seeks comments on a number of proposals made in this proceeding, including the following:

  • The new translators would operate on Channels 2-59, with those operations on channels 53-59 being authorized only where the applicant can show that there is no other channel on which a translator can operate
  • These translators will be given application priority over all other translator applications except those for the displacement of an existing translator or LPTV station, which would have co-equal priority
  • The translators would be authorized as part of the main station license, would be renewed as part of the main station license, and could not be sold except with the main station.
  • The translators will be authorized to fill in the area served by an analog full-power station but lost when the station converts to digital.  The Commission seeks comments as to whether even a nominal extension of the coverage area will be permitted (it apparently will not for authorizations initially granted through an STA) 
  • Applicants receiving an authorization for this service will be given a construction permit – and the Commission asks if that permit should be limited to a period of six months so that service to the public will be initiated quickly.
  • The Commission also asks how this service should interact with white spaces devices recently authorized by the Commission (see our summary).

Continue Reading FCC Proposes New Digital Low Power Fill-In Translators, and Starts Accepting Applications Immediately