A proposed sale of 18 Spanish-language radio stations from TelevisaUnivision to the Latino Media Network, is undergoing review “consistent with agency rules,” wrote FCC Chairwoman Jessica Rosenworcel in a letter responding to inquiries from Democratic lawmakers about the deal. The Congressional Hispanic Caucus and others urged the FCC to approve the transaction to increase ownership diversity, but Republican lawmakers said the deal should be scrutinized due to the involvement of Lakestar Finance, which has ties to investor George Soros (see 2206090071). “This process includes a thorough review of the record to determine if the proposed assignment is in the public interest,” said Rosenworcel in nearly identical letters to Sen. Ben Ray Lujan D-N.M., Rep. Bob Menendez, D-N.Y., and others.
Electronic filings show a host of broadcast groups lobbying FCC commissioner offices over proposed increases to regulatory fees. NAB met with aides to Chairwoman Jessica Rosenworcel and Commissioner Brendan Carr via teleconference last week. “Nothing prevents the Commission from implementing these decisions immediately,” NAB said, saying the agency’s NPRM on reg fees “does not suggest that the Commission lacks the authority to effectuate such changes in the current fiscal year. A contrary view would, among other things, render the NPRM a mere ‘notice,’ and not a proper rulemaking.” The State Broadcasters associations had calls last week with aides to Commissioner Geoffrey Starks and Rosenworcel raising the same arguments as their earlier filings (see 2208150055). Several individual broadcasters wrote letters to the agency, seeking fee relief. “The FCC’s regulatory fees are extremely punishing and directly affect our ability to serve listeners," said Bustos Media. “The FCC fees continue to increase at an alarming rate, and much faster than the revenues we are able to generate.” “I get hit pretty hard by these Regulatory Fees and the amount of increase is unexpected and difficult to account for,” said a letter from Ben Downs, general manager of Bryan Broadcasting. “I hope the Commission will see its way clear to consider the impact on small, local stations.” On Monday, 92 lawmakers sent Rosenworcel a letter questioning the proposed fees (see 2208150055).
Marion Education Exchange’s license hearing proceeding was dismissed with prejudice and the low-power FM broadcaster will likely lose the license of station WWGH(LP) Marion, Ohio, according to an order of dismissal from FCC Administrative Law Judge Jane Halprin in docket 22-76 in Tuesday’s Daily Digest. Halprin previously warned MEE the broadcaster must secure an attorney for the hearing to proceed (see 2206240060). “MEE’s representatives have consistently evidenced an inability or unwillingness to familiarize themselves with Commission rules and procedures in a way that would allow this case to move forward,” Halprin wrote. “When a licensee that bears the burden of proof does not fully participate in a hearing, it forfeits its opportunity to show that grant of its application is in the public interest.” The MEE hearing proceeding stems from allegations the broadcaster repeatedly failed to respond to FCC inquiries and gave the agency false information about the make-up of its board, including the names of deceased board members on filings, and changing board members without informing the agency. Halprin also ordered that a July letter from station manager Shawn Craft asking the FCC to impose a fine and spare the license (see 2207270047) be stricken from the record as an improper ex parte submission. “There is no mechanism in the Commission’s hearing rules to ignore the MEE HDO and turn back the clock so that MEE can be more forthcoming with the Media Bureau,” Halprin wrote. MEE didn’t comment.
92 lawmakers signed a letter Monday seeking answers from FCC Chairwoman Jessica Rosenworcel on a proposed 2022 regulatory fee increase for broadcasters. "Considering the harm a substantial fee increase would bring, we would like to better understand the FCC’s proposal," said the letter from Rep. Tom Emmer, R-Minnesota, Rep. Mo Brooks, R-Alabama, Rep. Terri Sewell, D-Alabama, and others. "Given the FCC’s statutory responsibility to adjust its schedule of regulatory fees to take into account factors that are reasonably related to the benefits provided to the fee payor, could the FCC explain what additional benefits have been provided to broadcasters that would justify such a high fee increase?" the letter asked, seeking a response from Rosenworcel "as soon as possible." "Why does the Commission’s proposed overall fee increase for broadcasters far exceed fee increases for any other industry?" the letter also asked. State broadcast associations also pressed the agency on reg fees, according to an ex parte filing posted Monday in docket 22-223. Broadcasters shouldn’t be charged for the FCC’s work on broadband, said representatives of the State Broadcasters Associations in a call with an aide to Commissioner Brendan Carr Wednesday. They urged the FCC to alter its fee structure to cease assessing broadcasters fees for full-time equivalents associated with the Universal Service Fund, or else exercise “flexibility” to “cease the continuing stream of year over year and double digit regulatory fee increases.” Broadcasters face a 13% regulatory fee increase this year, the filing said.
Small and regional broadcasters urged the FCC rethink its proposed radio regulatory fee hike, in docket 22-223 filings Friday. David Hoxeng, owner of WNRP-AM Gulf Breeze, Florida, said the proposed fee of $2,685, a 13.5% increase, would be close to 10% of the station's net income before any general and administrative expenses. That "makes it very difficult for my station to continue to afford to provide the same level of quality live and local programming to our community," Hoxeng said, urging that other industries "pay their fair share." "There has never been a tougher time to be in the radio business, and the FCC’s regulatory fees, and proposed increase for 2022, will make the job even tougher," East Arkansas Broadcasters CEO Bobby Caldwell said. Citing an upgrade of its remote audio codec equipment, he said money spent on regulatory fees "is a dollar less that we can devote to improving our service to listeners."
Geotargeted radio could “begin repair of the radio industry,” said radio broadcaster Jam Media Solutions in an ex parte letter posted in docket 20-401 Thursday. Local radio needs the capability to target and to embrace technological innovation to be competitive, Jam Media said. “The rule change will enable me and other small broadcasters to expand more efficiently into hyper-local ads.”
Though Ericsson doesn't participate in ATSC 3.0 standards-setting activities, it worries about the “chilling effect” an FCC effort to regulate reasonable and nondiscriminatory (RAND) 3.0 patent licensing would have on “other important areas of innovation” before the commission, including 5G, commented the company in docket 16-142 in the FCC’s NPRM on 3.0 (see 2207060019). Promulgating FCC rules that regulate royalties for 3.0-essential patents, including agency attempts to define what constitutes RAND licensing terms, “would create unintended consequences and harm future communications innovation,” plus it would “exceed the scope” of the commission’s “legal authority,” it said. “In the rare case where the FCC has intervened with patent and license negotiations, the Commission found that such action was necessary to carry out its explicit statutory directive, but even then did not directly regulate patent licensing,” said Ericsson.
The FCC should reallocate full-time equivalents associated with the USF so broadcasters no longer fund them with their regulatory fees, said NAB in calls with the Office of Managing Director Friday and Monday, said an ex parte filing posted Wednesday in docket 22-223. “Broadcasters should not be forced to pay more than $6.5 million in additional fees this year to pay for costs associated with the USF FTEs,” the filing said. If the FCC doesn’t reclassify the FTEs, it should reclassify the FTEs assigned to the Media Bureau that the agency has said are pursuing broadband policy, NAB said. “At a minimum, if 63% of Media Bureau FTEs are working on broadband issues, these FTEs cannot be working on issues pertaining to broadcasters and therefore broadcasters should be responsible for a much smaller portion of the Media Bureau’s overall fee allocation.”
The FCC “must enforce the law by collecting and publishing equal employment opportunity data by broadcasters and cable operators,” in a rulemaking within the next six months, said joint supplementary comments posted Wednesday in docket 98-204 from diversity and public interest groups including the National Urban League, the Multicultural Media, Telecom and Internet Council and the United Church of Christ Media Justice Ministry. The collection of the data was teed up by a Further NPRM voted by the agency in July 2021 (see 2107260059). “To avoid any hint of the constitutional questions” raised by broadcast commenters on the FNPRM, the agency should rule that statistical EEO reports alone can’t be used to initiate an inquiry into a licensee’s EEO compliance,” the groups said. The agency needs to act soon so OMB can approve the data collection within one year, allowing data collection by the end of 2023 and results by mid-2024. The groups want the data to be collected in a public digital portal that can also be used to show results by company and on regional and state by state bases. Many other federal agencies collect similar data from companies, and the FCC collection could stimulate research and create more industry transparency, the groups said. The FCC should also move to adopt a series of diversity proposals long requested by MMTC, the groups said. Those proposals include creating a civil rights section of the Enforcement Bureau and more extensive EEO enforcement and requiring certifications that job postings at FCC licensees preceded hiring decisions. The agency “has fallen far behind standard industry practices and is depriving itself and the public of the most basic and least regulatory tools” to ensure equity and diversity in the communications workforce, the groups said.
Qualcomm wants the FCC to “introduce the option” for broadcasters to use “5G Broadcast,” as an "alternative broadcast transmission standard” to ATSC 3.0 to beam over-the-air TV content to smartphones, because five years into 3.0's voluntary use, “broadcasters still lack the capability to reach on-the-go viewers via their mobile devices,” said the Snapdragon supplier in comments posted in docket 16-142. Comments were due Monday in the FCC’s NPRM on ATSC 3.0 deployment, including progress in broadcast and consumer adoption of the technology (see 2208090040). The agency’s June 22 rulemaking notice didn’t ask for public input on the progress to deploy 3.0 transmissions to mobile devices (see 2207060019), which Qualcomm correctly asserted don't exist. Qualcomm recommends the FCC “seek comment on implementation of the 5G Broadcast standard in this proceeding,” it said. “If allowed, this standard would provide mobile viewers with immersive broadcast content and critical public safety messages on their mobile devices when conventional broadcast alerting systems or cellular infrastructure are unavailable during a power outage,” it said. 5G Broadcast "would not replace ATSC 3.0 for fixed reception of television broadcast signals as the former technology targets mobility use case scenarios," said Qualcomm. 5G Broadcast "would complement the ATSC 3.0 services broadcasters are offering, reaching viewers wherever they are, including when they are out and about," it said. ATSC 3.0 “is not supported in mobile devices today” because a 3.0 modem “must be included in the mobile device along with additional hardware and software,” it said. 5G Broadcast, in contrast, “can be supported by mobile devices without any additional hardware,” it said. ATSC President Madeleine Noland said Tuesday she had no immediate comment "beyond that ATSC is reading through all of the submissions and may have an opinion to share after digesting what’s been written." Qualcomm was among several companies to oppose a commission mandate on 3.0 reception in smartphones in 2017, just before the FCC authorized 3.0's voluntary deployment for broadcasters; the commission never put such a mandate proposal on the table (see 1709200016). NPRM replies are due Sept. 6.