Broadcasting Telecasting (Oct-Dec 1961)

GOVERNMENT FCC adopts principle of catv impact INFORMAL VOTE BACKS KWRB-TV OPPOSITION TO MICROWAVE GRANT A majority of the FCC tentatively decided last week that the commission can and must consider the impact a microwave grant to service community antenna tv systems will have on an existing local tv station. In so doing, the FCC instructed its Opinions & Review staff to prepare a decision which would deny the application of Carter Mountain Transmission Corp. for microwave facilities to deliver signals to catv systems in Riverton, Lander and Thermopolis, all Wyoming. The application had been protested by KWRB-TV Riverton and, after an initial decision favorable to Carter, the NAB entered the case on the side of KWRB-TV. The staff instructions were issued Thursday (Dec. 14) after an oral argument earlier the same day. If the instructions are affirmed in a final decision, it will constitute the first time the FCC has denied a grant — albeit a common carrier application — on grounds an existing broadcast station will be harmed. Although no formal vote was announced, it is understood that the informal lineup was 5-1. Commissioner John S. Cross was in the minority and Commissioner Robert T. Bartley was out of town. According to a spokesman, the commission accepted the arguments of the NAB, KWRB-TV and the FCC Broadcast Bureau that the agency must consider the end result of the proposed microwave grant. Such a result might well be the demise of the only local tv station to the detriment of the public interest, it was stated. The spokesman pointed out that the FCC decision had nothing to do with the content of the programming to be repeated by the proposed microwave system; that this was not a consideration. Opposite Viewpoints ■ The commission's Broadcast Bureau and its Common Carrier Division took diametrically opposite positions in the case. Arguing for common carrier, Arthur Gladstone said that Carter is a bona fide common carrier and, that being so, the FCC has no authority to look at the final product of the proposed microwave. He said that the use to be made of the broadcast signals is of no concern of the commission. Mr. Gladstone and Thomas Shack, arguing for the applicant, said that the impact upon KWRB-TV is of no legal concern to the commission. Robert Rawson, chief of the Broadcast Bureau, said the grant would have an adverse affect on the Riverton station and that this is of proper concern to the commission. The agency must consider the ultimate result of the proposed grant, he said. Carter is seeking the microwave permit for off-the-air pickup of the signals of KOOK-TV and KGHL-TV, both Billings, Mont.; KTWO-TV CasperCheyenne, Wyo.; and KID-TV Idaho Falls, Idaho, to deliver to catv systems in the Wyoming cities. The commission originally granted the application in April 1959 without a hearing. After a KWRB-TV protest, the commission stayed the grant and ordered a hearing. Last May, Hearing Examiner Walter Guenther recommended a grant to Carter Mountain Transmission in an initial decision. He ruled that the impact upon KWRB-TV is of no legal significance in the determination as to whether such a grant would be in the public interest. Catv systems currently are operating in Riverton, Lander and Thermopolis and have been for several years. KWRB-TV formerly was on the cable system but is not at present. Carter argued that the initial decision, which was reversed by the FCC, is sound legally and contains a documented discussion of the basic legal questions involved. The applicant said that there is no reliable method of accurately estimating the competitive impact on KWRB-TV and that, in any event, such impact would have no bearing. The Winning Side ■ Vernon Wilkinson, KWRB-TV counsel, and Douglas Anello, NAB general counsel, successfully maintained that the public interest requires the FCC to consider the plight Washington relic B. Altman & Co., a New York department store, on Dec. 10 advertised the availability of original autographs. At $65 it offered a Franklin D. Roosevelt signature on an FCC appointment signed Feb. 12, 1935, countersigned by Cordell Hull, secretary of state, with official seal and decorative frame. The commission was that of Anning S. Prall appointing him a member and chairman of the FCC. Mr. Prall, former Democratic congressman from Staten Island, N. Y., served on the FCC from Jan. 17, 1935, until his death on July 23, 1937. of the tv station. Under the examiner's ruling, even if it could be shown that a microwave grant would destroy all tv stations west of the Mississippi, the FCC would be powerless to do anything about it, Mr. Wilkinson said. He pointed out that KWRB-TV is the only local tv station serving the area, with 45,000 people in its coverage area. If the station is forced off the air, it would leave 25,000 persons without any tv service, including catv, he said. The KWRB-TV counsel cited figures to show how the station's revenues had decreased in four cities as catv subscribers increased in the same areas. Mr. Anello said that the public interest criteria thrust upon the FCC means all uses of all classes of radio transmissions. He pointed out that there is a close economic control of common carriers, with no competition, and that they operate under a different set of rules than does broadcasting. The examiner failed to recognize the difference in the rules which is of extreme importance in a disposition of the case, he said. AT&T low etv rates open to all, says FCC Several etv stations are showing interest in lower interconnection rates set by AT&T for service which is particularly valuable for etv but less applicable for commercial broadcasters (Broadcasting, Nov. 13). The special rates went into effect Dec. 7. The FCC approved the AT&T tariff but notified the company it would have to make this service and rates available to all who wish to use it, not limit it to educators. This was the result of staff study on the question raised when AT&T made its proposal — common carriers must offer a type of service which is theoretically available to all who wish it. The special service includes no monitoring, no switching, no special supervision and no standby circuits — all vital in commercial interconnections. Although most broadcasters would not dare accept this service for long-haul commercial networks, some feet it is good enough for short-haul interconnections and the rates are appreciably lower than normal tariffs tend to be. AT&T had previously expressed willingness to make the service available to any requesting it and now will have to do it. 68 BROADCASTING, December 18, 1961