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from: Technology Daily

Cable Firms May Get Relief Despite Wave Of Lawsuits

By David Hatch

(Wednesday April 3) The FCC plans to grant regulatory relief to incumbent cable operators despite six new lawsuits challenging new rules providing similar relief to telecom giants entering the pay television business, FCC Commissioner Robert McDowell indicated.

In December, the agency voted along party lines to relax local video franchise restrictions for AT&T, Verizon and other cable competitors. The regulations force localities to consider applications within 90 days and do not require new entrants to make their services available to all citizens in franchise areas.

Local authorities, worried that the Republican-backed changes usurp their authority, filed suit Tuesday in federal appeals courts nationwide in an effort to overturn the rules.

"We are going on regardless of the appeal," McDowell, a Republican, vowed at a press briefing, noting that the agency expects to relax franchise guidelines for incumbent cable firms in a similar manner this September.

But Steve Traylor, spokesman for the National Association of Telecommunications Officials and Advisors, one of several groups participating in the court challenge, shot back: "The FCC didn't even have the authority to enact these [December] rules in the first place."

Besides Traylor’s group, the coalition filing suit includes the National Association of Counties and the National League of Cities among its members.

The groups are claiming the FCC has abused its authority, and charged that the recent FCC order will "severely restrict the ability of local governments to protect their citizens, rights of way, community channels and public safety networks." Challenges were filed in Atlanta, Cincinnati, Denver, Philadelphia, New York and Richmond, Va.

On another controversial topic -- the proposed merger of XM Satellite Radio and Sirius Satellite Radio, strongly opposed by local radio stations -- McDowell said he has not reached any conclusions.

He is reviewing whether the companies compete directly with over-the-air radio, and if so, if their merger creates a monopoly and impacts the agency's media ownership limits. The FCC could vote on the deal late this year.

McDowell acknowledged that stepped up congressional oversight has affected the agency. "It could be a coincidence, but we seem to have a lot more pink pieces of paper circulating here on the eighth floor," he said, referring to regulatory items under consideration by the members. "Whether that's a result of oversight or not, that's a positive development."

Discussing efforts to overhaul the $7.3 billion universal service fund, McDowell proposed slowing its growth, broadening the contributor base, reducing contribution levels, promoting equitable distribution of subsidies and eliminating waste and abuse.

A federal-state joint board overseen by the agency will soon issue new recommendations for revamping the fund, which lowers telecom and Internet connections in rural and low-income areas.