U.S. Appeals Court Stops Leased Access Case
6th Circuit Orders FCC To Update Status Every 60 Days
By Ted Hearn -- Multichannel News, 7/29/2008 5:53:00 AM
Washington -- A federal appeals court has stopped the cable industry's legal attack on new leased access rules to accommodate the Federal Communications Commission in the agency's ongoing dispute with the Bush administration's Office of Management and Budget.
Last Friday, the U.S. Court of Appeals for the 6th Circuit in Cincinnati agreed to hold the case “in abeyance.” It also ordered the FCC to update the court every 60 days on the status of its problems with OMB.
The cable industry is appealing FCC rules to regulate the rates that third-party commercial programmers pay to access cable systems. Large cable operators have to set aside 15 percent or channels for leased access programmers.
The National Cable & Telecommunications Association claims on behalf of cable operators that the FCC had imposed a rate structure that produced an illegally low amount of revenue.
In May, the 6th Circuit stayed the FCC's rules. A few weeks ago, OMB refused to approve the FCC implementing regulations, saying the information collection burdens placed on cable operators violated the Paperwork Reduction Act.
In the face of OMB's objections, the FCC filed a motion last week asking for the court case to be suspended while the agency attempted to solve its problems with OMB.
“Perhaps OMB can be persuaded to reconsider its decision,” the FCC said in the three-page motion, which the court granted without commentary.
The FCC adopted the new leased access rules last November on 3-2 vote, with Republican FCC chairman Kevin Martin voting with FCC Democrats Michael Copps and Jonathan Adelstein.
That same majority, the FCC told the 6th Circuit, has the power to override OMB's objection about excessive paperwork burdens on cable operators. Evidently, the Martin-Copps-Adelstein trio isn't ready to brush aside OMB anytime soon.
The 6th Circuit granted the FCC's motion without soliciting input from NCTA or Verizon, which also appealed because the FCC's regulations would apply to its FiOS video programming service.
NCTA declined to comment.
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Another great example how Big Business is running our Government forcing their hand on Government issues to better their greedy desires. What ever happened to "By the People, For the People". Now it''s By the money, for the big business . . . . screw the people but smile doing it.
Ian Reynolds - 8/1/2008 8:37:00 AM EDT -
Anyone who has ever attempted to purchase leased access from a cable operator knows full well that most of the 'excess paperwork' that is generated is generated purposely by the cable companies from the leased access programmers. In their "applications" for carriage they ask you to give them your entire financial history, marketing plans, program outlines, list of advertisers and even any criminal history. Even when you are paying cash in advance. Lucky for them they don't have to disclose the same. This whole court action is simply more of the same from the cable operators ... stall, stall and stall some more. Please FCC ... wake up and do the right thing. Enforce the intent of congress.
Jerry Kenney - 7/31/2008 11:55:00 PM EDT -
Once again big industry has suppressed the little guy. It would be welcomed to see the FCC over come the OMB's rejection of the new rules. Paper Reduction Act...seems another good intention getting in the way of doing the right thing.
Overall the suppressed Lease Access Programmers or third party programmers are seemingly put on the back burner yet again.
The implementation of the new rules are past due. Level playing field is what the cable industry is shouting, why can't Lease Access Programmers get the same.
Chris Folsom - 7/31/2008 3:26:00 PM EDT -
Our association is asking Chairman Martin and the commissioners to override OMB at tomorrow's session.
The cable industry, OMB and the courts are imposing serious harm on leased access programmers.
It doesn't appear to me this is what Congress intended.
Charlie Stogner - 7/31/2008 2:09:00 PM EDT
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