Concerns about putting broadcasters on equal footing with...
Concerns about putting broadcasters on equal footing with new and other media that lack a ban on foreign ownership above 25 percent were mentioned in replies to a broadcast coalition’s petition to the FCC. Cable networks, over-the-top video providers, Internet…
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radio and “online access to a huge variety of news” were cited by the Coalition for Broadcast Investment (CBI) that made the petition. “Only broadcasters, among all these competing outlets, are subject to a rigid foreign-investment restriction,” said the coalition (http://bit.ly/18qTIee). “In this competitive environment, there is no basis in fact or law for any assertion that the public interest would be harmed merely by considering higher levels of indirect foreign investment in broadcasters on a case-by-case basis.” Initial comments had also said cybersecurity wasn’t a likely concern. “The Commission’s policy of safeguarding only the broadcast medium against potential foreign influence is obsolete,” said Alaska Broadcast Communications, Juneau Alaska Communications and Texarkana Radio Center Licenses (http://bit.ly/130N52z). “There is no logical national security rationale for distinguishing between broadcasting and other forms of communications media that are not subject to restrictions on foreign investment.” To the National Association of Broadcasters, “lessening this regulatory disparity would not only promote more robust competition in the communications marketplace, but also would allow broadcasters to invest more in their existing program services and ‘finance new offerings using digital technology,'” it said, citing initial comments by Adelante Media, a member of CBI. “This lack of opposition underscores the modest nature of the requested relief for a more flexible case-by-case review of foreign investment and ownership in broadcast properties,” said NAB (http://bit.ly/11YedNs). Whether commissioners vote on any foreign broadcast ownership rule change or not, allowing waivers would probably be done by a formal action to provide public notice of a new tack, said an FCC official and an industry lawyer. They said it’s unclear if any rule change would be adopted under Acting Chairman Mignon Clyburn, and it may wait until there’s a permanent FCC leader. Tom Wheeler is being nominated for that job by President Barack Obama. (See separate report in this issue). “I'm guessing it’s a little bit controversial,” even though all organizations supported CBI, said broadcast lawyer David Silverman of Davis Wright, who represented the Alaskan broadcasters in the proceeding. “Otherwise it would have happened by now” before last year’s petition was filed, he said. “The media landscape has changed sufficiently that it would seem to justify changing their policy in that regard.” With the Internet and cable programming not “subject to ownership restrictions, there really is no reason to enforce it so strictly in the broadcast context,” said Silverman. He’s “cautiously optimistic” the policy will change once there’s a permanent chairman.