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Television Digest with Consumer Electronics, Feb 8, 1999

AtHome granted 3Com higher certification for its cable modems and its cable modem termination system (CMTS), 3Com said. Company said it's only manufacturer to reach Level II certification for modems and CMTS. ------ FCC en banc hearing on TV ownership issues Feb. 12 will focus exclusively on TV duopoly, radio-TV cross-ownership and local marketing agreement grandfathering issues, Commission said in announcing session (TVD Jan 25 p7).

Meeting (9:30 a.m.-noon) will be divided into 2 panels -- one with legal scholars, economists, political scientists, Wall St. representatives, other with persons actively involved in issues dealing with specific rule proposals. Panelists are to include Stevie Wonder, entertainer who owns radio station in Compton, Cal.; Jeffrey Marcus of Chancellor Media; William Baker of WNET; Victor Miller of Bear, Stearns; Kent Mikkelsen of Economists Inc.; Owen Fiss, Yale prof.; Andrew Schwartzman of Media Access Project; Dean Alger, mass media author; Alan Frank of Post-Newsweek's WDIV-TV Detroit; Michael McCarthy of A.H. Belo; Lawrence Grossman of Columbia U.; Greg Sidak of American Enterprise Institute; Royce Yudhoff of Abry Partners. ------ Senate Majority Leader Lott (R-Miss.) named 5 members to what will be 19-member commission established by Child Online Protection Act (COPA). Late Feb. 1, U.S. Dist. Judge Lowell Reed, Philadelphia, granted preliminary injunction staying enforcement of law. Reed ruled that law that sponsors designed to limit children's access to material harmful to minors on commercial Web sites was worded too broadly because law refers to "any communication... article, recording, writing or matter of any kind." He wrote that "sweeping category of forms of content that are prohibited" could have been "less restrictive of speech on the Web and more narrowly tailored to Congress's goal of shielding minors from pornographic teasers" if Congress had limited content to only pictures or images. Lott's nominees are: (1) Donna Hughes, communications dir. for Enough Is Enough anti-porn group. (2) Arthur DeRosier, pres. of Rocky Mountain College, Billings, Mont. (3) Albert Ganier, pres. of company providing Internet service and filtering in Tenn. (4) Bradley Keirnes, pres. of Integrity Online franchise in Colo. (5) Karen Talbert, marketing dir. for Lifeline.net service. Senate Democratic Leader Daschle (S.D.) is to make other appointments, as are House leaders. ------ FCC won't require access to broadband cable facilities as condition of AT&T-TCI merger, FCC Chmn. Kennard told conference sponsored by American Assn. of Retired Persons. Agency's rejection of open access requirement had been expected, but this was first time Kennard had acknowledged it publicly. FCC official explained later that AT&T-TCI merger review isn't appropriate place to make determination on open access. Open access isn't "merger specific," meaning it's issue that would exist for TCI whether or not it merged with AT&T, he said. Staff recommendation on merger didn't include open access language, and no commissioner has added it, official said. FCC is expected to issue decision within few weeks. ------ PBS "will vigorously contest" $47 million judgment against it by L.A. jury Feb. 1, spokesman said. Jury said PBS had caused failed home video company Pacific Arts (PA) $14.6 million in damages -- approximate value of video library now owned by PBS Home Video -- by having video distributors cancel their contracts with PA even as it held meetings with company on ways to help PA recover from financial setbacks. Jury also gave PA founder Michael Nesmith $3 million in compensatory and punitive damages. PBS said it "firmly believes that the facts and law in the case merited a ruling in our favor and we are frankly shocked at the verdict." PBS, 2 member stations and Children's TV Workshop had sued Nesmith, former member of "Monkees," and PA as creditors, but jury dismissed that complaint and said PBS must pay what's owed to other plaintiffs. ------ Broadcasters and others again called for direct access to Intelsat system in latest round of comments to FCC on issue. However, Comsat told Commission that granting direct access and associated provisions before Intelsat is privatized would jeopardize that organization's complete and timely privatization. CBS, Disney, NBC and Turner Bcstg., in joint comments, attacked Comsat's rate markup and contrasted U.S. signatory's practices with those of its British counterpart, British Telecom (BT). Not only does BT not increase its own prices to Intelsat customers, broadcasters said, but entities availing themselves of direct access are "not assessed any surcharge to recover such costs... It is difficult to understand why Comsat's situation should be so radically different than BT's." ------ Rep. Berman (D-Cal.) officially was named senior Democrat on House Intellectual Property Subcommittee, replacing Rep. Frank (D- Mass.) Berman counsel Bari Schwartz will take over Democratic subcommittee staff work, with Doug Campbell replacing Schwartz as legislative dir. in Berman's congressional office. Berman, who represents N. Hollywood, said: "Entertainment is my home town industry, and it's one that I've been working closely with for all the years I've been in Congress." He said he had "much to learn, particularly in the high-tech industries." ------ U.S. Appeals Court, Federal Circuit, upheld $20 million patent infringement award in favor of broadcast equipment maker Comark, company said. Suit charged that Harris Corp. infringed on Comark patent for aural carrier corrector. Harris, which already has paid the damages, agreed not to pursue further appeals. ------ NBC will kick off spring conventions of Big 4 TV network affiliates with May 15-17 sessions at N.Y. Sheraton Hotel. CBS comes next, gathering June 1-4 at Century Plaza Hotel, L.A. Next up will be ABC June 7-8, also at Century Plaza. Fox stations meet June 17-19 in Chicago, first time there's been affiliates' convention in that city in many years. ------ Nearly 40% of U.S. population has access to DTV, NAB said. Assn. said 51 stations in 26 markets are on air with DTV. Among top-10 markets, only Chicago doesn't have operational DTV station, because of tower problems. Smallest market with DTV is Jackson, Miss. (90th). NAB said top 30 will have DTV by Nov., reaching 60% of TV households. ------ At request of APTS, FCC agreed to delay deadline for comments on its rulemaking on ancillary or supplemental use of DTV spectrum by noncommercial entities. APTS said more time was needed to include results of industrywide discussions scheduled for end of Jan. New deadline is Feb. 16 (instead of original Jan. 28) for initial comments, March 16 instead of March 1 for replies. ------ Senate Communications Subcommittee Chmn. Burns (R-Mont.), as expected, introduced his bill (S-376) Feb. 4 to reform international satellite system. Bill proposes as U.S. policy that Intelsat must privatize by 2002 while restricting its ability to offer new services, such as DBS or Ka-band. Following letter sent to Commission earlier, Burns said FCC should hold up on its rulemaking to allow Intelsat to access U.S. market directly. He doesn't want access until privatization. Comsat Pres. Betty Alewine said she opposes portion of bill that would require U.S. to withdraw from Intelsat if privatization isn't finished by 2002: "The spectre of withdrawal by the U.S. on an arbitrary deadline could jeopardize rather than enhance the prospects for and objectives of privatization." She said bill is "strong first step" toward Hill consideration of satellite reform. Burns's measure differs in several key areas from satellite legislation proposed by House Commerce Committee Chmn. Bliley (R-Va.) and Senior House Telecom Subcommittee Democrat Markey (Mass.). In one main area, House bill would allow direct access sooner than would Burns. ------ Antioch, Cal., can enforce senior citizen discount in agreement with Tele-Vue Systems (TVS) in franchise now held by TCI, FCC said in order adopted Jan. 29. Cable Bureau upheld its Feb. 1997 letter ruling on case. Franchise, agreed upon in 1984 and extended 10 years in 1991, prevents operator from increasing basic rates more than 25 cents per year for citizens at least 62 years old and creates $1 satellite tier for same group. TVS in 1994 raised senior rates more than 50%, made only Social Security recipients eligible, eliminated $1 satellite tier. TVS said Cable Act preempted such franchise provisions by giving FCC jurisdiction over upper tier rate regulation. Commission said it should "avoid unnecessary regulatory interference regarding contracts... entered into by consenting parties." ------ CNN anchor Judy Woodruff and CBS anchor Bob Schiefer will co- host American Women in Radio & TV Congressional Gala, 6 p.m., Feb. 10, House Cannon Caucus Room. More than 80 legislators are expected to attend -- 703-920-1520. ------ NCTA added as members 8 more MSOs with 900,000 subscribers, it said, and now represents operators reaching 90% of U.S. cable subscribers. Those joining effective Feb. 1 were Avalon Cable TV, Coaxial Communications of Southern O., Houlton Cable, Mediacom, Millennium Digital Media, News-Press & Gazette Cable, Peak Cablevision, Rapid Cable. ------ Rep. Oxley (R-O.) with Reps. Stearns (R-Fla.) and Hall (D- Tex.) introduced HR-598 to repeal newspaper-broadcast cross- ownership restriction. Oxley said ban was "outdated and anticompetitive." Bill also was introduced last year. Stearns also may again offer measure to raise some caps on broadcast ownership.