This month’s much-anticipated FCC public meeting scheduled for Thursday is cancelled and controversial topics such as the proposed AWS-3 spectrum auction are being moved into circulation.

Another agenda item that will be put off is an attempt to resolve disagreements between cable operators and programmers regarding carriage.

The cancellation was requested by Sen. Jay Rockefeller and Rep. Henry Waxman, who will lead the respective Senate and House commerce committees next year. It is vital for the FCC to focus on next February’s digital television transition and not be distracted by other issues, the elected officials said.

Being in circulation means the commissioners can vote at any time after an item’s rules are agreed upon, without a set timeframe or the public spotlight of a formal meeting. So the approval of an auction for AWS-3 spectrum could theoretically still occur, but is not likely, during the remainder of FCC Chairman Kevin Martin’s tenure, which is expected to expire after President-Elect Barack Obama takes office on Jan. 20.

Martin’s proposed rules for the auction are controversial for several reasons: incumbent carriers disagree with the requirement to use such spectrum for free public service; a variety of parties claim the rules are designed to unfairly help startup M2Z Networks; incumbents also say that M2Z’s plan would cause interference to existing networks; public advocacy groups disagree with the requirement to filter traffic on that service; and government budget-watchers say the spectrum would be grossly under priced.

Meanwhile, M2Z says the FCC was legally required to take action on AWS-3 spectrum by Nov. 14 of this year. M2Z officials point to section 7(b) of the Communications Act, which states, “[If] the Commission initiates its own proceeding for a new technology or service, such proceeding shall be completed within 12 months after it is initiated.” The AWS-3 rulemaking began within the FCC last fall, and even the latest possible choice of an official starting date would have been Nov. 14, M2Z says, meaning 12 months are passed.

M2Z CEO John Muleta this morning declined to comment on whether his company will seek any legal enforcement of that timeframe. T-Mobile USA, a leading opponent of the auction, previously said it hopes the Obama Administration will reconsider the issue.

Other items on the December meeting agenda now moved into circulation include E-911 location accuracy, a regulatory framework for Satellite Digital Audio Radio Service and Wireless Communications Service, along with Wireless Radio Services renewals.

The cable issue was apparently of secondary import in the decision to delay the FCC meeting, though it was no less controversial.

The specific argument that inspired the FCC to consider the issue is between Comcast and Time Warner Cable on the one hand, and the NFL Network on the other.

Comcast offered to carry the NFL Network on a premium tier. The NFL Network rejected the offer, insisting Comcast carry its programming on the basic tier, and asserting that being placed on a premium tier was tantamount to discrimination.

The cable industry’s perception is that Chairman Martin is hostile to its interests, so the delay in considering the issue is, from cable’s point of view, a relief.

– Additional reporting by Brian Santo, CED

More Broadband Direct:

• FCC pressured to cancel meet on AWS-3 auction, cable spat

• Google says it still stands by Net neutrality

• AT&T's U-verse arrives in Raleigh, Orlando

• Shentel to upgrade purchased systems

• Zodiac, Ensequence team up on EBIF player for tru2way, PowerTV

• Cable Europe Labs OKs more products

• AT&T boosts dividend 2.5% amid restructuring

• RCN Business Services checks in with Chicago's Conrad Hotel

• Report: Over-the-top driving viewership

• Broadband Briefs for 12/15/08