FCC Chairman Kevin Martin has circulated a proposal to the other four commissioners that would relax long standing media-ownership regulations, including ease the limitation on the number of newspapers, TV and radio stations that companies are allowed to control in a particular market.

Martin wants to expedite the agency's review of media-ownership rules, hoping to conclude the long-running proceeding in November and a vote to be scheduled on December 18, FCC officials said today.

In the past, Martin has said he is in favor of scrapping a rule that prohibits one company from owning a television station and newspaper in the same market.

“We’ve had six hearings around the country already; we’ve done numerous studies; we’ve been collecting data for the last 18 months; and the issues have been pending for years,” Martin told the New York Times. “I think it is an appropriate time to begin a discussion to complete this rule-making and complete these media ownership issues.”

Martin's predecessor as FCC chairman, Michael Powell, previously attempted to radically loosen the limits on media ownership in 2003. And failed. It was halted by the 3rd Circuit Court of Appeals which ruled the FCC hadn't justified its attempt at reform sufficiently.

Martin may take a more drastic approach.

Blair Levin, a telecommunications analyst at Stifel Nicolaus told Bloomberg that Martin will likely be willing to reach a compromise with the two Democratic FCC panel members, who have expressed strong concerns over the issue of media ownership.

Commissioner Michael J. Copps, as we know, is adamantly opposed to loosening media consolidation rules. Jonathan S. Adelstein, the other Democrat on the FCC, has said that the agency first needs to address other media issues, including encouraging improved coverage of local events and greater ownership of stations by companies controlled by women and minorities.

Levin feels that some action on trying to facilitate greater access to the airwaves by minority groups and women could form part of Martin's compromise.

As advertising dollars shift from print newspapers to the Internet, the newspaper industry has undergone a wave of upheaval and consolidation (and, let's face it, a loss of jobs). Especially since online advertising dollars don't nearly produce the same amount of revenue as print ads did (and the level of accountability to deliver a return on investment is increased as well... always a challenge to ad sales folks). This has put new pressure on regulators to loosen ownership rules.

The same sort of logic can be applied to satellite radio and the "audio entertainment" market.

As our eyes and ears increasingly are faced with a widening array of alternatives (fragmentation), the old rules simply don't apply anymore. Technology companies are no longer simply technology companies. They're "media" now. Media companies are no longer confined to the old eco-system either, they need to find your ears and eyes through other distribution channels. Telecom companies look to capitalize on convergence as they provide audio/video services (and content) to mobile phones. Meanwhile the behemoth in the room is the Internet, poised to provide the ultimate distribution platform with little-to-no barrier to entry. And so on.

Distribution is increasing becoming less of a differentiator in the market. And that's at the basis of this debate.

The fact that Martin wants to get this through by mid-December, coincidentally around the time that the Sirius-XM 180-day window is expected to close, might very well say something about Martin's overall intentions.

[New York Times, Bloomberg]
Thanks Karl!

Engadget has uncovered, in some vigorous FCC digging, that a new MyFi has come across the desk at the Commission.

Unfortunately little is known about the device because XM has requested short-term confidentiality on such goodies like internal/external photos, manuals and technical info regarding the "coupling device." Other items like schematics and parts lists that may contain "trade secrets" are wrapped in the veil of long-term confidentially. Thankfully, the short-term confidentiality only lasts for 45-days, so we should know more about this badboy by December-ish.

Now, judging from the fact that its the same part number as the 1st gen MyFi (SA10113), I'm willing to guess that this is just an updated version. More than likely to have something to do with FM transmitters or something boring like that.

Then again, XM could be updating the beloved device with beefier internals (such as a more powerful Inno-like antenna) and preparing the MyFi as its low-end (read: affordable) handheld receiver. All the while prepping a badass uber-handheld complete with a sweet touchscreen interface for us to fawn over in the year ahead. Mr. Nate Davis did afterall drop some hints about a new portable coming next year. Oh the speculation!

[FCC Documents via Engadget]
Thanks TV Genius!

U.S. Electronics has formally asked the FCC to stop the Commission's informal clock in order to bring attention to new and unaddressed issues.

The company, who previously filed a lawsuit against Sirius Satellite Radio Inc., voiced concerns over various issues including monopolistic equipment access, rule violations, interoperable requirements, the handling of ex parte communications, the scheduling of agenda items and (last but not least) delays in access to "decision-makers."

Of note, U.S. Electronics (USE) brings up what they call "Vertical Monopoly/Network Access." USE feels that while the Commission focuses on ensuring price regulations on subscription rates, the merged company would be able to "price equipment to subsidize lower subscription rates."

Not a bad thought. Well, except that the "Vertical Monopoly/Network Access" situation exists in the current setup of two companies. Sirius is still the only place where you can get Howard Stern, for instance, so if there was to be a price hike in devices to subsidize revenue, it would have happened already. It's not like Sirius-XM can start charging $800 at retail, and still expect sales to grow. The same applies for the OEM channel. It's that whole "free market" thing, and if the relevant market is defined to inclue competition against HD Radio, MP3 players, and Streaming/Mobile Audio, then the point is moot.

USE brings up several additional points that they call "complex and novel issues, unanswered questions, and the irregularities in the process." As a result, they want the FCC to stop the process.

It was disclosed in March that U.S. Electronics filed suit against Sirius Satellite Radio, seeking $48 million in damages.

[View FCC Filing (PDF) via Orbitcast Forums]

The National Association of Broadcasters has asked the FCC to stop the informal 180-day "clock," in a filing with the Commission today.

The NAB's "Petition to Defer Action" requests that the FCC formally stop the clock, so that the NAB can "review and supplement the record with certain documents related to the serious apparent wrongdoing by XM and Sirius 'executive and senior-level employees' regarding the operation of FM modulators/transmitters and/or terrestrial repeaters."

In other words, the NAB wants the clock stopped so they can review the documents released from a previous FOIA request that the Enforcement Bureau felt were fit for public inspection.

The documents haven't been released yet, because they're still under review by various parties (largely consisting of Sirius and XM). The NAB feels these documents are important to the merger proceedings because of the DirecTV-EchoStar merger proceedings. During the DirecTV-EchoStar case, the FCC felt that EchoStar's compliance record "suggests a resistance to taking steps to serve the public interest that do not serve the company's view of its own private economic interest."

So the NAB wants the time-clock stopped, so as to allow for enough time for them to review the documents whenever they're actually released.

They insist that waiting for these released documents will "shed further light on the nature and scope of [Sirius and XM's] malfeasance and the role of senior management."

"Simply put, the Commission cannot in this proceeding rely on information produced in the enforcement proceedings without the parties to this proceeding having an opportunity to review and comment on that evidence," writes the NAB in the filing.

[FCC Filing (PDF) via Orbitcast Forums]

The HD Radio camp is advertising that there are currently over 1,500 radio stations now broadcasting in HD (from its website, to press releases as well as in various other promotions)... but yet only 1,300 have filed with the FCC.

That's according to the Federal Communications Commission's Audio Division Chief Peter Doyle at least. And I'd say he's a pretty good authority on the matter.

At the NAB Radio Show last week, Doyle brought up the issue at a panel discussion, according to Radio Info.

"I keep hearing that 1500 stations are in HD, but only 1300" have filed the required notification with the Commission, said the FCC Audio Division Chief.

Doyle added, "if you're one of the 200, please let us know."

Funny how the NAB calls Sirius and XM's infractions with the FCC as "brazen" and that the companies "cannot be trusted" as a result. The NAB even calls for Freedom of Information Act requests to extract, and likely publicize, any of satellite radio's problems with the agency. But when it comes to their own requirements with the FCC, terrestrial radio conveniently ignores their own responsibilities.

How hypocritical is it for the NAB to scream about XM-Sirius repeater towers - ones that were voluntarily lowered - while there are 200 HD Radio stations that haven't filed with the FCC themselves?

Absoulutely ridiculous.

[Radio Info (PDF)]