FCC Chief To Ease Rules

Kevin Martin, Chairman of the Federal Communications Commission (FCC) has proposed moderation of a thirty two year old ban on radio and television broadcasters owning newspapers in the same markets.

The proposal would loosen up the rules in the 20 largest U.S. markets. The plan would bar such a company from owning a TV station that ranks among the top four in a market. Moreover, at least eight independently owned and operated media voices must remain after the transaction.

Martin claimed that the newspapers had faced considerable challenges and financial difficulties and that "It's important to do all we can to ensure that we still have a vibrant newspaper industry." Martin claimed that his cross-ownership proposal was definitely more modest than the 2003 rule changes, which would have allowed newspapers to own TV stations in 170 markets.

Gannett Co. publisher of USA Today, however criticized the proposal stating that it "does not reflect the realities of the marketplace." Senators Byron Dorgan, a North Dakota Democrat seemed to agree with Gannett. He said, "Martin is relying on an assumption that newspapers are doomed and that cross-ownership is necessary to save them. I believe this is not the case."

The Federal Communications Commission, established by the Communications Act of 1934 is a United States government agency. It is charged with regulating all non-Federal Government use of the radio spectrum and all interstate telecommunications as well as all international communications that originate or terminate in the United States. The FCC's jurisdiction covers the 50 states, the District of Columbia, and U.S. possessions.

The proposed rule change is likely to benefit Tribune Co. and News Corp. The former can go ahead with its plan to go private in an $8.2 billion deal led by Chicago real estate mogul Sam Zell. The new policy wouldn't apply to Hartford, Connecticut, a fifth market where Tribune owns a newspaper and two TV stations.
Tribune shares rose 62 cents to $28.53 at 4:04 p.m. in New York Stock Exchange composite trading.