Even as FCC commissioners began their monthly meeting sans the unlock-the-box order, the item remains on circulation and some parties tell us they're hopeful a version of an apps-based proposal ultimately will be adopted. After a flurry of lobbying by all affected parties as the sunshine period began last week, agency officials told us revisions to the order were in the works. All FCC Democratic members announced just before their meeting began at 10:30 a.m. Thursday they're working toward a resolution.

A federal court reversed FCC preemption of state limits on municipal broadband efforts to extend their systems to surrounding communities. The FCC 2015 order "essentially serves to re-allocate decision-making power between the states and their municipalities," said the ruling (in Pacer) Wednesday by a panel of the 6th U.S. Circuit Court of Appeals (State of Tennessee; State of North Carolina v. FCC, Nos. 15-3291/3555). "This preemption by the FCC of the allocation of power between a state and its subdivisions requires at least a clear statement in the authorizing federal legislation. The FCC relies upon § 706 of the Telecommunications Act of 1996 for the authority to preempt in this case, but that statute falls far short of such a clear statement. The preemption order must accordingly be reversed," said the opinion by Judge John Rogers, who was joined by Judge Joseph Hood, with Judge Helene White concurring in part and dissenting in part.

A split panel of federal judges has upheld the FCC net neutrality order that reclassified broadband service under Title II of the Communications Act. In a 184-page document of the U.S. Court of Appeals for the D.C. Circuit, Judges David Tatel and Sri Srinivasan wrote the majority opinion finding FCC arguments reasonable and denying all petitions for review of its order, while judge Stephen Williams dissented in part and concurred in part (USTelecom v. FCC, No. 15-1063). FCC Chairman Tom Wheeler cheered the ruling, which Commissioner Ajit Pai said it disappointed him, and USTelecom had no immediate comment.

Federal judges denied petitions for review of the FCC net neutrality order "in accordance with the opinion of the court," in a per curiam judgment (in Pacer) Tuesday (USTelecom v. FCC, No. 15-1063). The lengthy opinion (in Pacer) of the panel of the U.S. Court of Appeals for the D.C. Circuit was also released this morning. This opinion will be the subject of a forthcoming Communications Daily Bulletin this morning. The FCC order had reclassified broadband under Title II of the Communications Act. Officials at the FCC and USTelecom had no immediate comment.

The FCC lost a media ownership court case in which broadcasters appealed an order limiting TV joint sales agreements in some circumstances and public interest groups appealed on a lack of further regulation and on concerns the commission didn't fully address diversity issues. The 3rd Circuit Court of Appeals also ordered mediation. It vacated and remanded to the commission the TV JSA agreement rule, in a brief order Wednesday.

The FCC Friday announced a 126 megahertz initial spectrum clearing target for the TV incentive auction, a figure on the high end of possible targets. As a result, 100 megahertz, or 10 paired blocks, of 600 MHz spectrum will be offered in the forward auction on a “near-nationwide” basis, the FCC said Friday in a public notice. The FCC also said the reverse clock auction will start May 31.

LAS VEGAS -- ATSC “likely” will recommend adoption of Dolby AC-4 as the ATSC 3.0 audio codec for the U.S. “and perhaps North America,” by year-end, ATSC President Mark Richer told us exclusively Monday at the opening of the ATSC 3.0 Consumer Experience exhibit at the NAB Show. Dolby Labs executives were at the exhibit to showcase AC-4's immersive audio qualities through an off-the-shelf soundbar mounted next to an LG Ultra HD TV. It was there that Mathias Bendull, Dolby vice president-broadcast consumer audio, told us ATSC would announce AC-4 as its recommended ATSC 3.0 audio codec for North America by the end of 2016.

The White House now backs FCC Chairman Tom Wheeler in a goal to unlock the cable set-top box market, senior officials said Friday. NCTA CEO Michael Powell expressed disappointment with the message of the administration, which said the look at set-tops is part of a broader initiative looking at competition. Powell slammed "bad government." Supporters of the Wheeler-backed NPRM approved 3-2 by commissioners applauded the White House support. DOJ previously backed the NPRM (see Communications Daily Bulletin Feb. 3).

Chairman Tom Wheeler proposed the FCC replace its special access regime with a new "technology-neutral framework," in a draft Further NPRM and tariff order he circulated Thursday for consideration at the agency's April 28 meeting. That was as first reported by Communications Daily, and a longer article in the regular issue being emailed to subscribers tonight will report on the coming order and FNPRM in more detail. Wheeler disclosed the items in a Friday blog post headlined "Out with the Old, In with the New."

Chairman Tom Wheeler is circulating an order for the FCC March 31 meeting opening a rulemaking on privacy rules for ISPs, agency officials said. The move was expected and first reported by Communications Daily. A fight is expected at what promises to be a contentious open meeting. FCC Republicans Ajit Pai and Mike O’Rielly have expressed concerns about whether the agency is well positioned to oversee privacy.