FCC Broadcast Ownership Inquiry May Loosen Rules
The FCC began a broadcast ownership inquiry that may ease limits on the number of radio and TV stations a firm can own in a city and end a ban on broadcast-newspaper cross ownership. The further notice of proposed rulemaking asks respondents to provide a reason for setting caps. The FCC response to a 2004 appeals court remand asks if it should lift some limits. The inquiry, released late Mon., was voted on more than a month ago (CD June 22 p11). A wholesale lifting of limits is unlikely, but TV limits probably will be eased, said a broadcast lawyer.
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The Commission asked if blocking a broadcaster from owning more than one Big 4 network - ABC, CBS, Fox and NBC
- “remains necessary in the public interest as a result of competition.” The FCC sought comments on how to tweak limits keeping a firm from owning more than 8 radio stations in top markets. Queries include whether to bar broadcasters from owning more than 5 AM or FM stations in one area. Added the rulemaking: “Lastly, we seek comment on whether the local radio ownership rule currently in effect is necessary in the public interest as a result of competition.”
The FCC made no similar request on TV stations, but many questions about that sector resemble those on radio ownership. “Should the [TV] limits vary depending on size of the market?” the notice asked: “Is there additional evidence to support the Commission’s decision to treat capacity as an important factor in measuring the competitive structure of TV markets?” Executives may get their wishes for the Commission to allow ownership of 2 TV stations in more towns through an order resulting from the rulemaking, broadcast attorney Peter Tannenwald said.
“It’s a wide open document that gives people an opportunity to comment on everything,” Tannenwald said: “The question is how the Commission will reconcile the desire to allow businesses to grow and diversify their service against the desire to have a minimum number of competitors in each market.” The duopoly limit is among the likeliest to be adjusted, he said. Radio ownership limits may ease slightly, he said, predicting “tweaks more than big changes.”
The inquiry seeks comments on minority participation in the industry. “We urge commenters to explain the effects, if any, that their ownership rule proposals will have on ownership of broadcast outlets by minorities, women and small businesses.” The Commission sought “comment on the proposals to foster minority ownership advanced by MMTC in its filings.” Comments in the rulemaking are due Sept. 22, replies Nov. 21.
The effort insufficiently addresses minority issues, said Minority Media & Telecom Council Exec. Dir. David Honig. “Its sparseness is problematic,” he said: “It would have been more useful had it expressed some alternatives.” And the notice “ignored” recommendations from FCC committees, he said: “That’s really not the right way to start a proceeding like this.”