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Originally published November 8, 2007 at 12:00 AM | Page modified November 8, 2007 at 2:03 AM

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Smaller stakes but bigger furor over FCC rules

For the second time in four years, the government is rewriting media ownership rules, a process that probably will allow big companies to...

The Associated Press

Media ownership rules

The Federal Communications Commission soon will vote on the rules that govern how many broadcast stations and newspapers a single company may own.

The current rules:

National television ownership: No entity may own television stations that in the aggregate reach more than 39 percent of the country's television households. (Limit set by Congress, not subject to FCC review.)

Dual network ownership: Common ownership of two of the top four television networks is prohibited.

Local TV multiple ownership: One entity may own two television stations in the same market as long as their signals do not overlap, or as long as one of the two stations is not in the top four and at least eight independent stations remain following the combination.

Local radio ownership: In a market with 45 or more stations, the limit is eight; 30 to 44 stations, the limit is seven; 15 to 29 stations the limit is six; in a market with 14 or fewer stations, the limit is five; below five, the limit is no more than half the stations.

Newspaper/broadcast cross-ownership: Common ownership between a daily newspaper and a full-power broadcast station is prohibited.

Radio/television cross-ownership: In a market where at least 20 independently owned media voices remain post-transaction, a single entity may own two television stations and six radio stations or it may own one television station and seven radio stations.

Source: Federal Communications Commission

The Associated Press

FCC hearing in Seattle

Commissioners of the Federal Communications Commission will be in Seattle Friday to conduct a public hearing on issues related to localism and access to public airwaves. Testimony will be heard from 4 to 11 p.m. at Town Hall, 1119 Eighth Ave. Live audiocast of the hearing will be available on first-come basis at www.fcc.gov.

To testify, e-mail fcc504@fcc.gov

WASHINGTON — For the second time in four years, the government is rewriting media ownership rules, a process that probably will allow big companies to get even bigger.

While the stakes this time are smaller, the furor surrounding the process has, if anything, grown.

Democratic members of the Federal Communications Commission have accused the chairman, Republican Kevin Martin, of calling public hearings without adequate notice and rushing the review process. Martin wants a vote by year's end.

Well-organized opponents have staged protests, attacked the FCC's economic studies as biased in favor of liberalizing the rules and complained that the agency is not doing enough to promote minority ownership.

Seattle Times Publisher Frank Blethen also has been an outspoken supporter of ownership limits.

Congress is getting involved, too. The Senate Commerce, Science and Transportation Committee plans to hear testimony on the issues today. A House panel has scheduled a hearing for Dec. 6.

The FCC's final public hearing on media ownership is set for Friday in Seattle.

Thanks to Congress, the debate this time does not include the issue that galvanized opposition to media consolidation in 2003: a cap on the percentage of the country's TV households that one entity's stations can reach.

"The national ownership cap was really a big, big fight last time," said Dennis Wharton, spokesman for the National Association of Broadcasters. "You had the far right and the far left coalescing around this sort of perfect storm."

The FCC voted to raise the cap from 35 percent to 45 percent. It followed intense lobbying from Viacom Inc., then-owner of CBS, which was at 38 percent, and News Corp., owner of Fox Broadcasting Inc. which was at 39 percent.

After the vote, Congress set the cap at 39 percent.

The priority for broadcasters now has shifted to two other rules: a prohibition against a radio or television broadcaster from owning a daily newspaper in the same community, and a ban on a single company owning two television stations in the same market, except in certain circumstances.

The newspaper-broadcast ban is important for the National Newspaper Association and media companies such as Tribune Co. and Media General Inc., which say the rule is an anachronism. They contend that if it were lifted, it would lead to more news on local broadcast stations.

Tribune, currently the subject of an $8.2 billion buyout that would take the company private, owns both television stations and newspapers in five markets. It has asked the FCC to temporarily waive cross-ownership restrictions until the agency votes on the issue, which would allow the deal to move forward.

Gene Kimmelman, who has followed media ownership issues for Consumers Union, nonprofit owner of Consumer Reports magazine, said the newspaper ban is pivotal.

"The issue at stake is even more important than the previous debate because most citizens turn to their local newspaper and local broadcasters for news about their community," he said. "Allowing them to combine could enable one company to dominate the presentation of local news."

Broadcasters also want the FCC to eliminate the rule that prevents them from owning more than one television station in a single market.

Martin wants to schedule a vote on the rules Dec. 18. His position is no mystery; he was part of the 3-2 Republican majority that voted to loosen the rules in 2003.

A federal appeals court later tossed out most of the rules the commissioners passed in 2003.

Based on his public statements, Martin appears likely to propose allowing broadcasters to own newspapers in the largest markets, but with limits in smaller markets.

He probably will be joined by Republicans Robert McDowell, who has displayed a deregulatory agenda in his short tenure, and Deborah Taylor Tate, who generally votes with the chairman.

The two Democratic commissioners, Michael Copps and Jonathan Adelstein, voted against the rules in 2003, and have been vocal this time, too. Most recently, they criticized Martin for scheduling the Seattle hearing with only five days' notice.

Material from the Seattle Times archives is included in this report.

Copyright © 2007 The Seattle Times Company

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