Cable Fear D.C. Changes

Television Digest with Consumer Electronics, April 24, 2000

Apparently ending proceeding over sale of Buffalo PTV station to commercial broadcaster, FCC denied application for review filed by Coalition for Noncommercial Media (CNM), which had sought to block transaction. CNM had argued that Mass Media Bureau, which had cleared sale to Sinclair of WNED-TV sister station WNEQ-TV (Ch. 23), failed to consider CNM's counterproposal that FCC not allow any transactions that would result in fewer public TV stations in market. Bureau "may have omitted mention" of counterproposal, FCC said, but "any error this involved was harmless" since CNM's arguments wouldn't have won anyway. It said proposal to reserve all channels being operated noncommercially should be raised as general rulemaking, not in adjudicatory proceeding. Commission didn't comment on flurry of last-min. filings by CNM and WNED-TV seeking to strike each other's briefs in dispute that hinged on whether quotes from Warren Communications News' Communications Daily could be used as evidence. CNM had based its petition for emergency relief on comments by WNED-TV Pres. Don Boswell, after Sinclair pulled out of $33 million purchase of WNEQ-TV, that another commercial entity could operate station immediately under local marketing agreement. It argued that such arrangement shouldn't be allowed at time when FCC was cracking down on them in commercial world. WNED-TV dismissed "reference to a trade press report" as "hearsay statements" that shouldn't be relied on by FCC. CNM countered that WNED-TV didn't deny truth of statements made by its own pres. to "journal of record in the communications industry." LMA dispute apparently has been mooted by failure of WNED-TV to find new buyer for WNEQ-TV in 6 months. "There's been interest," spokeswoman told us, "but as far as I know no one has made a formal offer."

Cablevision Systems' Rainbow Media Holdings subsidiary fleshed out its proposal to launch satellite-delivered local programming service in many big U.S. markets. In presentation to FCC's International Bureau last week, Rainbow pitched plan to offer at least 8 local broadcast and cable channels in targeted markets using spot beam satellite built by Loral. Orbital slot reaches as far west as St. Louis. Sources said cable programming portion of service would resemble 3 local MetroChannels that Cablevision's systems carry in N.Y.C. area. RLDBS is seeking 2- year extension of Loral's frequency rights, which expired in August. EchoStar Communications, which holds rights to most of frequencies at 61.5E slot and already operates satellite there, and Kelly Bcstg. oppose petition. Sources said they expected FCC International Bureau to decide issue in next several weeks.

House Telecom Subcommittee Chmn. Tauzin (R-La.) will seek to move Internet legislation when House returns after current 2-week recess, spokesman Ken Johnson said. He will push HR-1291 sponsored by Rep. Upton (R-Mich.), which would ban FCC from imposing access charges on ISPs. Upton bill has 133 co-sponsors, but list doesn't include House Commerce Committee Chmn. Bliley (R- Va.).