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FCC Upcoming Media Ownership Review May Begin With NOI

The upcoming comprehensive review of FCC media ownership rules may begin with a notice of inquiry (NOI) -- not a rulemaking proposal as in past rounds, said numerous commission and industry officials. That tack is thought to be preferred by Chairman Julius Genachowski. It may help take the air out of possible criticism from members of Congress over the ownership process, which has drawn much heat in previous iterations, said communications lawyers.

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By holding workshops (CD Sept 30 p11) before formally beginning the 2010 quadrennial review as mandated under the Communications Act, Genachowski may be trying to demonstrate to Capitol Hill that he’s seeking public and expert input before starting the process, they said. Former FCC Chairman Kevin Martin drew scorn from many Hill Democrats and some Republicans for what they said was rushing through a relaxation of cross-ownership rules preventing common ownership in a city of a daily newspaper and radio or TV station.

The rulemaking notice on ownership under Martin “was very, very broad and was criticized for being called an NPRM and not an NOI,” attorney David Oxenford of Davis Wright, who represents TV and radio stations, said. “If the commission really doesn’t have a preconception of where it’s going to go for media ownership rules, then why put out rules for public comment?” Genachowski’s approach to the 2010 review may try to avoid such criticism, said a media executive. But that also could slow down the process, the executive said.

“The public’s input is of great importance to the chairman,” said a commission spokeswoman. “The workshops will seek viewpoints and information from consumers, public interest and trade associations, labor unions, media representatives and other interested persons throughout the quadrennial review process.” Media Bureau staff may run the first workshop, in November, said another commission official.

A broad notice of inquiry could pave the way for a rulemaking notice proposing rules, unlike the one issued in 2006 under Martin, said commission and industry officials. The goal may be to ask questions in the NOI that are then resolved in the Notice of Proposed Rulemaking (NPRM), they said. FCC members have held informal, limited discussions about the process, including what sort of ownership studies should be done and what subjects should be covered in the workshops, said a commission official.

Another difference in the upcoming review from past ones is that Genachowski, by holding workshops, will get information in public to guide the examination, rather than behind closed doors as has happened before, said commission and industry officials. That may boost transparency after some previous reviews started after FCC officials held private meetings among industry officials and consumer groups, they said.

“We think that doing the public workshops is a really good step,” said Policy Counsel Corie Wright of Free Press. The group has opposed media consolidation and participated in previous ownership reviews. “This commission definitely has its head in the right place for pursuing it,” Wright said. “It’s saying it plans on being data-driven and we think that is likely to result in the best outcome.”

There is some precedent for holding public meetings before a formal rule review, as occurred in the broadcast localism proceeding, said Oxenford. “Starting out with an NOI may give them some shape for comments to allow them to kind of inform their progress going forward so they can come out with some proposed rules rather than starting out with ‘hey guys, what do you think?'”