FCC To Open a Proceeding Examining the Broadcast Ownership Rules

The FCC is scheduled to open a proceeding looking at its ownership rules at its September 30^th meeting.  The Telecommunications Act of 1996 requires the FCC to conduct a review of its broadcast ownership rules every four years.  Often controversial, this process has been the subject of litigation for years.  The statute instructs the FCC to determine whether the rules remain “necessary in the public interest as the result of competition” and to “repeal or modify any regulation [that it] determines to be no longer in the public interest." 

The first step in the process is to issue a Notice of Proposed rulemaking.  The FCC plans to examine the following rules:

Local Radio Rule:

• Seek comment on whether the Local Radio Ownership Rule, which limits the total number of radio stations that may be commonly owned in a local market, continues to be necessary in the public interest as the result of competition.

• Seek comment on possible modifications of the rule’s operation, including the relevant product market, market size tiers, and numerical limits.

• Seek comment on whether to retain, modify, or eliminate the separate limits (or subcaps) that restrict the number of radio stations a licensee can own in the same service (AM or FM) in a single market.

Local Television Rule:

• Seek comment on whether the Local Television Rule, which limits a single entity from owning more than two television stations in the same local market, remains necessary in the public interest as the result of competition.

• Seek comment on possible modifications of the rule’s operation, including the relevant product market, the numerical limit, and consideration of television market characteristics.

Dual Network Rule:

• Seek comment on whether the Dual Network Rule, which prohibits a merger between or among the Big Four broadcast networks (ABC, CBS, FOX, and NBC), remains necessary in the public interest as the result of competition, and if not, whether to modify or eliminate the rule.

  
  

This is an important proceeding.  NYSBA is in favor of relaxing these rules.  Deregulation is essential if we are to compete in today’s hyper-competitive marketplace.

You can see a draft of the FCC’s Notice of Proposed Rulemaking here.

You can see NYSBA’s position on ownership rules in comments filed as part of the FCC’s “Delete, Delete, Delete Proceeding here.