April 18,
2001
The
Honorable Michael Powell
Chairman
Federal Communications
Commission
445 12th Street, S.W.
Washington, D.C.
20554
Dear
Chairman Powell:
The
Federal Communications Commission (Commission) has a panoply
of rules governing the ownership of U.S. broadcast properties.
These rules ¤ in particular the national television ownership
cap, the newspaper/broadcast station and cable/broadcast
station cross-ownership rules ¤
were born at a time when only three major networks dominated
broadcasting and a time where there were far fewer electronic
media outlets and a real need to increase the diversity of
viewpoints. While Congress certainly has an interest in
promoting diversity in the media marketplace, the increasingly
competitive nature of that marketplace ¤ in particular, the
explosion of media outlets resulting from the growth of cable,
satellite, the Internet and other forms of media --
necessitates a fundamental re-examination of the continuing
validity of the assumptions underlying these broadcast
ownership rules, and the rules themselves. We are particularly
concerned that the perpetuation of rules enacted to a media
marketplace long gone-by may have the effect of no longer
promoting diversity. Instead, they may have the effect of
thwarting the growth and competitiveness of free, over-the-air
broadcasters, especially vŪs-a-vŪs pay television services,
which face virtually no government-imposed limits on their
ability to grow and compete in an increasingly global
marketplace.
There
are two means by which the Commission could accomplish this
review. First, it could initiate a new, formal rulemaking
proceeding addressing these rules comprehensively.
Alternatively, Section 202(h) of the 1996 Act requires the
Commission to review its ownership rules biennially to
"determine whether any of such rules are necessary in the
public interest as the result of competition." We are quite
pleased that you recently testified before the House
Telecommunications and Internet Subcommittee that you consider
this evaluation to be an "obligation" and that you are
committed to undertaking a serious review of the regulatory
standards -- without presupposing the outcome -- to respond to
changes in the broadcast industry. In the event that the
Commission chooses not to initiate the formal rulemaking
requested above, we request that the Commission accelerate the
timetable within which it is going to initiate its biennial
review process pursuant to Section 202(h).
The
CommissionĄs rules must reflect todayĄs world, not that of
fifty years ago. They should recognize the growth in the
number and variety of media outlets in the media marketplace,
as well as significant efficiencies and public service
benefits that can be obtained from joint ownership. At the
same time, the Commission's rules must reflect the continuing
goals of ensuring diversity and localism and guarding against
undue concentration of economic power in the marketplace. By
agreeing to undertake either one of the above-requested
actions, the Commission would demonstrate its determination
that the broadcast ownership rules be modernized to enable
more robust competition in the marketplace.
We look
forward to working with you on this and many other issues of
import and thank you for your anticipated cooperation with
this request.
Sincerely,
The
Honorable W.J. "Billy" Tauzin
Chairman
Committee on
Energy and Commerce
The Honorable Fred Upton
Chairman
Commerce
Subcommittee on Telecommunications and the Internet
cc:
The
Honorable John D. Dingell, Ranking Member
Committee on
Energy and Commerce
The Honorable Ed Markey, Ranking
Member
Subcommittee on Telecommunications and the
Internet