Industry News

Starks and Simington Exits Leave FCC without a Quorum

At the end of the business day today (6/6), the Federal Communications Commission is without a quorum of three commissioners. Democrat Commissioner Geoffrey Starks previously announced his exit from theimg Commission and Republican Commissioner Nathan Simington abruptly announced his departure from his commissioner role earlier this week. President Trump nominated Olivia Trusty for the open seat that existed prior to Starks’ and Simington’s departures but that has been stalled in the Senate. Interestingly, FOX News reports that Simington’s chief of staff Gavin Wax is being floated as a potential nominee, according to “a source close to the FCC.” Regardless, the Senate needs to get at least one nominee confirmed soon as the Commission’s ability to do business is disrupted.

Industry News

FCC Commissioner Simington Announces Surprise Resignation

Republican FCC Commissioner Nathan Simington – who joined the Commission during President Trump’s first term – surprised the industry on Wednesday (6/4) by issuing a statement announcing his exit from the Commission. He said, “I will be concluding my tenure at the Federal Communications Commission at theimg end of this week. It has been the greatest honor of my professional life to serve the American people as a Commissioner. I am deeply honored to have been entrusted with this responsibility by President Donald J. Trump during his first term. The Commission is in excellent hands under the leadership of my distinguished colleague, Chairman Brendan T. Carr, and is supported by an extraordinary staff whose dedication to public service is second to none. Throughout my tenure, I worked to defend free expression, safeguard national security, and promote infrastructure investment to benefit all Americans… I look forward to continuing to serve the public interest in the years ahead and to contributing to the vital conversations surrounding our communications infrastructure, national security, and technological leadership. I remain committed to advancing the cause of limited government, free speech, and American innovation. These principles guided my time at the Commission and will continue to shape my future endeavors. As I move forward, I remain committed to shaping the future of communications policy and will continue to advocate for the values and priorities that have guided my public service.”

Industry News

FCC’s Simington Targets Reverse Retransmission Fees to Combat “Fake News”

FCC Commissioner Nathan A. Simington and his chief of staff Gavin M. Wax penned ann op-ed published in The National Pulse calling for a cap on reverse retransmission fees as a measure to protect local journalism and rein in corporate media monopolies. Simington and Wax propose limiting reverse retransmission fees to 30%, arguing that such a cap would curb the financial power of legacy media giants, support independent broadcasters, and restore integrity to America’s media landscape. They write in the piece, “These fees (and ad sales) generate revenue for broadcasters that they use to run their operations and produce local journalism. However, media conglomerates like Paramountimg Global, the parent company of CBS, have begun charging what’s known as ‘reverse’ retransmission fees to broadcasters. The networks demand a share of broadcasters’ revenue for the right to use their content. This practice was once unheard of, but some networks now regularly require more than 100% of broadcasters’ retransmission fees as ‘reverse’ fees, leaving broadcasters to sustain themselves solely on whatever ad sales they can make with their limited inventory (also capped by the networks, and often amounts to only a few minutes of airtime per hour). This funnels more and more money out of local markets and local journalism and into the hands of mega media corporations, who threaten broadcasters with content blackouts if they don’t get sky-high payouts.” They go on to argue that the “problem gets even worse with providers like YouTube TV and Hulu Live. Under their affiliate agreements with the networks, local affiliates can’t even negotiate for online providers to carry the content. The networks do it for them and pay the affiliates whatever they deem reasonable (sometimes, nothing). This gives the networks total control over streaming distribution while robbing local stations of revenue and autonomy in the rapidly growing online video space. What was once a mechanism to support hometown news is now a corporate racket. Instead of investing in local reporters, meteorologists, and producers, local broadcasters’ funds are siphoned to bloated national newsrooms that churn out anti-Trump propaganda and woke talking points. Meanwhile, higher cable bills pass the cost to everyday Americans.” Read the full op-ed here.

Industry News

FCC’s Simington Argues for American Reindustrialization

In an op-ed piece published in The Daily Caller, FCC Commissioner Nathan A. Simington – with newly appointed chief of staff Gavin M. Wax – makes the case for American reindustrialization to effectively compete with China. He says, “Today, a growing fraction of China’s manufacturing strengthimg lies in its ability to deploy high-end, labor-light, automation-heavy processes at scale. It’s a productivity story now, driven by robotics, industrial AI, and, most crucially, advanced 5G infrastructure deployed as an industrial platform — not just as a consumer gimmick.” He adds, “Compare this with our own policy environment, where even the best private sector players are hamstrung by outdated regulations, capricious permitting processes, and the dogma that government shouldn’t pick winners — especially in telecom or manufacturing. That ideology might have made sense in the 1990s, but it’s lethal to the future of our telecommunications industry now, and in consequence, our manufacturing future.” See the entire op-ed here.