Key U.S. lawmakers urged regulators on Friday to delay action on contentious items ahead of the transition to digital television, which will likely postpone a spectrum auction opposed by cell phone companies.
The Federal Communication Commission’s December agenda includes a plan to auction a slice of the airwaves with a mandate for free Internet, and rules for handling disputes between cable companies and content providers.
Sen. John Rockefeller and Rep. Henry Waxman wrote FCC Chairman Kevin Martin on Friday, asking that he hold off any knotty FCC business and instead focus on the nationwide mandatory switch to digital television signals, due to occur February of next year.
“At a time when serious questions are being raised about transition readiness, it would be counterproductive for the FCC to consider unrelated items, especially complex and controversial items,” wrote the Democratic lawmakers, who will chair their respective oversight committees in the next Congress.
The lawmakers did not say which items should be delayed, but the spectrum and cable items are the most controversial on the FCC’s schedule.
“We believe that most of the draft items on the agenda for the FCC’s December 18 meeting, many of which were already controversial, are now in even greater jeopardy,” Stifel Nicolaus analysts said in an investor note.
Many lawmakers fear the digital switch, in which about 15 percent of U.S. households will lose their current mode of television, will be messy, as it puts a burden on consumers to take specific actions, such as buying new converter boxes, to ensure keeping television service.
Signals are being converted to digital to free up airwaves for public safety uses, especially in emergencies.
WAIT FOR NEXT ADMINISTRATION
The lawmakers said the FCC should refrain from any matters in which “the new Congress and the new administration will have an interest in reviewing.”
FCC spokesman Matt Nodine said Martin was reviewing the letter and would discuss it with the four other FCC commissioners.
Cell phone companies, in particular Deutsche Telekom AG’s T-Mobile, oppose the auction, saying rules of the auction would permit interference with adjacent spectrum, among other concerns. T-Mobile paid about $4.2 billion for an adjacent piece of spectrum.
Under the so-called Advanced Services Wireless-3, or AWS-3 plan, a bidder buying the spectrum must use a quarter of it to provide free Internet services virtually nationwide.
Cell phone companies say this business model will not work. It is similar to one proposed earlier by start-up M2Z Networks, a group backed by investors including venture capital firm Kleiner Perkins Caufield & Byers.
Several public interest groups expressed concerns about the plan in a filing this week with the FCC, including opposition to a requirement for filtering for indecent material.
Further casting doubt on the plan, Martin is opposed by his own Bush Administration on the auction. Commerce Secretary Carlos Gutierrez officially said this week it was a bad plan.
Martin, whose support among his fellow commissioners has waned in recent months, needs backing from the two Democrats on the five-voting member FCC for the spectrum proposal to pass, analysts said.
CABLE ISSUES
Another item that could be postponed is one involving disputes between cable companies such as Time Warner Cable Inc. and Comcast, and content programmers.
“Cable companies, which have been under pressure from Chairman Martin, will probably be pleased with the letter’s direction,” Stifel analysts said.
Conflicts arise over what tier of service a content provider such as NFL Networks receives on cable and whether a cable company discriminates based on other competing programs it may own.
The FCC is scheduled to consider setting up a process for resolving such disputes and setting legal standards for when a programer can claim it is being discriminated against.
Researchers from University of California, San Diego and Berkeley hijacked a working spam network and uncovered some of the economics of being a junk mailer.