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FCC Chairman Kevin Martin announced that he will be leaving the Commission on Tuesday as the new President is inaugurated, and thus will not be present at the FCC to set any last minute policy for the DTV transition.  In fact, if Martin had decided to stay for the end of the transition, he might well have had to stick around for a while, as there are bills making their way through Congress to delay the February 17 deadline for the transition to digital television.  Senator Rockefeller has introduced a bill that would extend the deadline to June 12, which Senate Republicans blocked last week, though it will reportedly be reintroduced this week.  At the same time, the three remaining Commissioners have all released letters that indicate that there are significant transition problems that need to be resolved before the transition deadline.  While there are those who wonder if the delay will really solve the problems that may exist – the movement is in the direction of a delay.

The letters from the Commissioners are most interesting.  First came a letter from Commissioner McDowell, not directed to Congress, but instead to Chairman Martin, publicly asking for information about the FCC’s DTV phone bank to answer questions from consumers about the transition.  According to the McDowell letter, he was unable to get information about the status of upgrades to the system to handle the expected influx of calls at the end of the transition.  McDowell also complained about calls that were not answered at all, or which had long wait times, when consumers called – wait times that often resulted in connections with a voicemail system.  And he raised questions about the failure of the phonebank to be open on weekends.  It has now been announced that IBM has been hired to man the phonebank, perhaps answering some of the questions Commissioner McDowell raised in his letter.Continue Reading Kevin Martin Departs as Congress Looks at June 12 DTV Transition Deadline – While Remaining Commissioners Write Letters About Transition Problems

The FCC last week issued a decision that should make Buyers think twice in determining how sales of broadcast stations are concluded – especially in the days of $325,000 potential fines for indecency violations.  In the case decided last week, the Commission concluded that the licensee of a broadcast station was liable for fines for violations…

The press was abuzz yesterday with the news that Julius Genachowski is apparently the pick of the Obama Administration for the position of FCC Chairman.  Mr. Genachowski was at the FCC during the Reed Hundt Administration, and has since worked in the private sector in the telecommunications industry, including work with Barry Diller and running a DC-based venture capital fund.  From the positive reactions that the appointment has received from all quarters, the choice would seem to be a great one.  But, in looking at some of the reactions, you have to question whether everyone has to be reading what they want to see into the new Commission.  For instance, while the NAB has praised the choice of Genachowski (stating  that he "has a keen intellect, a passion for public service, and a deep understanding of the important role that free and local broadcasting plays in American life"), so too did media-reform organization Free Press ("This moment calls for bold and immediate steps to spur competition, foster innovation and breathe new life into our communications sector. With his unique blend of business and governmental experience, Genachowski promises to provide the strong leadership we need.")  What will this appointment really mean for broadcasters?

In short – who knows?  When Kevin Martin was appointed Chairman of the FCC, few would have imagined that a former communications attorney, a person deeply involved in the Bush campaign, and a former staffer of FCC Commissioner Harold Furtchgott-Roth (perhaps the most free market Commissioner ever) would have supported sustained, wide-reaching inquiries into the underbrush of FCC regulation – e.g. localism, embedded advertising, indecency.  So we can’t really know what a Chairman will do until he does it.  The Washington Post and the Wall Street Journal both suggest that the new chairman will be focused on Internet issues, and may be less interested in indecency – but who knows?Continue Reading Julius Genachowski as New FCC Chair – What Will It Mean to Broadcasting’s Future?

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…

 Just when you think that the year will come to a quiet end, something always seems to pop up.  Today, the Copyright Royalty Board announced a Notice of Proposed Rulemaking that would change the reporting requirements for services that pay royalties for the use of sound recordings to SoundExchange.  The proposed new rules would require that Reports of Use submitted by services relying on the statutory royalty contain "full census reporting" of all songs played by any service.  Services would include all users of music who pay royalties due under Sections 112 or 114 of the Copyright Act – including Internet Radio, satellite radio, digital cable radio, digitally transmitted business establishment services, and radio-like services delivered by other digital means, including deliveries to cell phones. This reporting requirement would replace the current system, about which we wrote here, that only requires reporting for two weeks each quarter.  Under the new rules, an Internet radio service would have to submit the name of every song that they play to SoundExchange, along with information as to how many times that song played, the name of the featured artist, and either the recording’s ISRC code or both the album title and label.  Comments on this proposal are due by January 29.

Currently, the quarterly reports are filed electronically using an ASCII format and using either an Excel or Quattro Pro spreadsheet template as created by SoundExchange.  The Board asks for comments as to whether there are technological impediments to providing this information in this manner, and if other changes should be made to more easily facilitate the delivery of this information.  The Copyright Royalty Judges who make up the CRB expressed their opinion that the full census reporting is preferable to the limited information now provided, so that SoundExchange does not need to rely on estimates or projections to insure that all artists are fairly compensated when their works are played.  Using census reporting, all artists can be paid based on how often their songs are actually played.Continue Reading Copyright Royalty Board Proposes Full “Census” Reporting for Services Paying Royalties to SoundExchange

The FCC last week issued an order fining a broadcast  tower owner $2000 for failure to monitor the lights on its tower.  The FCC requires that a tower owner either monitor the tower by visual inspection or by a properly installed automatic monitoring system, at least once every 24 hours.  In this case, the tower owner…

On October 13, 2008, David Oxenford conducted a session at the Kansas Association of Broadcasters Annual Convention, held in Wichita.  The session, called "What Else Can Washington Do For You?" focused on regulatory and legislative developments that affect broadcasters. 

A copy of the PowerPoint presentation used at this session will be available here soon.

Last week, President-elect Barack Obama delivered his first weekly radio address since he was elected President.  The broadcast made news, not only for its content, but also because it was streamed on the Internet, particularly on You Tube, but also retransmitted on many other websites.  The fact that the Internet makes such transmissions not only possible, but so easy and so widely available demonstrates one of many reasons why all the worry about the return of the Fairness Doctrine is unwarranted.  With access to so many diverse opinions not only on the radio but also through all of the new technologies, why should the government care that one radio station may not cover all sides of a controversial issue?  If one station does not put on a strongly held viewpoint on an important issue, you can bet that someone who holds that viewpoint will find some way to transmit it to others. 

The return of the Fairness Doctrine has been the great invisible monster in the room since the election – with many commentators, particularly conservative ones, worrying that the Democratic Congress will attempt to reinstate the Fairness Doctrine.  Off-hand comments such as those made by Senator Schumer on Fox News, have fueled this speculation, even though the Obama campaign has specifically rejected such a return.  The Fairness Doctrine is one grounded in scarcity of the electronic spectrum – from the fear that if one side of an issue was allowed to dominate one of the few means of communicating with the population of a community, it would effectively be able to stifle the ability of those with contrasting viewpoints to get their message out.   But, to use a phrase that is becoming increasingly popular – that thinking is so 20th Century.Continue Reading Obama’s Radio Address is Streamed on the Internet – Demonstrating Why There Need Not Be Any Return of the Fairness Doctrine

At the FCC meeting held on Election Day, the Commission approved the operation of "white spaces" devices in the TV spectrum.  These would be mobile, unlicensed devices that would operate on TV channels that are not used in a particular location.  Many Internet users have hailed the expansion of wireless Internet opportunities that they believe that this decision will bring.  While the FCC promised that these devices would protect television operations and other current uses of the TV Band, many other groups have reacted to the decision far more skeptically.  All in all, we have probably not heard the end of this debate.

The full text of the FCC Order has not yet been released but, from the Public Notice summarizing the action (which came late in the day, after a several hour delay in the start of the FCC meeting), the FCC appears to have made some concessions to the broadcasters who were objecting that the tests of the white spaces devices were not able to adequately sense the presence of television signals in a way that would protect those stations.  So, to protect television signals, the FCC ordered that, in addition to sensing the existence of television signals, the white spaces devices would also have to have geo-location abilities, which would check the location of the device and compare it to a database of television stations and prevent the device from operating on channels that the database shows to be occupied.  Even with this capacity, organizations representing television stations do not believe that this compromise is sufficient to protect those stations.Continue Reading FCC Approves White Spaces Devices in TV Band – While Some Hail a Boon to Wireless Internet, Others Say Not So Fast

A Canadian radio station has apparently pulled off an amazing stunt that would have prompted an FCC fine if it had been done by a US radio station – calling Vice Presidential nominee Sarah Palin and engaging her in an on-air conversation under the premise that she was talking to French President Nicholas Sarkozy.  A recording of…