POWELL SKEPTICAL ON TV OWNERSHIP CAP, OPPOSES NEW CABLE RULES

New FCC Chmn. Powell pressed competition rather than regulation on TV and radio issues in his first news conference since taking over 2 weeks ago (see separate story, this issue). Signaling clear break with Democratic-run Commission of last 8 years, he seemed to favor scrapping FCC’s broadcast ownership cap, which prohibits broadcasters from owning TV stations reaching more than 35% of U.S. households. He came out firmly against re- regulation of cable and expressed philosophical concerns about agency’s setting restrictions on indecent TV programming or imposing political free air time rules on broadcasters. But he also avoided taking strong stands on other key TV and radio issues, such as low-power FM (LPFM), DTV transition, cable open access mandates.

Powell, antitrust expert who generally has opposed ownership caps in past, didn’t actually call for eliminating 35% broadcast station limit but clearly indicated where his sentiments lay. Calling himself skeptical about “the prophylactic effect of caps,” he said he would “strenuously” campaign against broadcast cap “if competitive policy were the only issue.” Powell also called idea of caps “almost a romantic notion at times” and “an emotional one” that was difficult to justify on competitive basis. However, he noted that such other issues as ownership diversity were strong factors, creating “tension” with competitive viability rationale. He predicted that Commission would debate issue thoroughly again.

Questioned about rising cable rates and prospects for new cable regulation, Powell said he was “not particularly troubled” by impact of Telecom Act, which deregulated most cable rates. He said he didn’t believe cable price increases, which have run well ahead of general inflation rate, “are enough of a justification” for imposing new rate restrictions on industry. He said increases in fees for “programming that consumers value highly” were driving much of rate boosts. He also pointed out that viewers “can express their preferences” and switch pay TV providers, thanks to steady growth of DBS and other cable rivals, and that pay TV penetration continued to grow despite rate complaints.

Although he was “outraged” by some of what he saw on TV and thought “there’s a lot of garbage on TV,” Powell said he would “find it very difficult” for FCC to impose programming restrictions on TV industry. “It’s very easy to articulate a general anxiety,” he said. “But I don’t get paid to write general anxiety rules.” He said he wasn’t even sure whether Congress should become involved because of First Amendment and other concerns. “There are a lot of things that I don’t want my children to see,” he said. “But government is not a nanny.”

Powell said he didn’t see why FCC should be “entangled” in debate over possible free political air time requirements for broadcasters. “People bring it here because it’s easier to convince 3 of 5 unelected officials” than majority of Congress, he said. “But that’s not a reason to take the job.”

Asked about cable open access, which is before FCC now as notice of inquiry, Powell avoided taking stance. Calling it “a very hard question, one of the hardest questions we've seen,” he said issue was not one that could be decided “viscerally.” He said proponents’ calls for open markets and greater broadband competition didn’t necessarily justify FCC’s intervention right now. “You can make a case for anticompetitive activity any time,” he said. “The real issue is whether the intervention is timely.” He also contended that “openness is not always good,” citing copyright protections that stop free flow of content.

Powell, who joined previous Commission’s recent majority decision that “tentatively concluded” against DTV must-carry requirements for cable operators during digital transition, downplayed FCC’s role in transition. Arguing that “most of the answers are not in my hands,” he said success of transition relied mainly on TV programmers, station owners, set manufacturers, cable operators, consumers. But he pledged that Commission would “first of all clarify the legal and regulatory environment” for broadcasters, producers and others so it would be easier for them to proceed.

On LPFM issue, Powell said he still supported phasing in new low-power stations and testing for signal interference problems. He also said FCC needed “a greater independent ability to assess” new technologies when deciding such issues. But, as on other issues, he said he would defer to Congress’s wishes on LPFM and implied that he wouldn’t lobby Capitol Hill on subject. “I feel sincerely that it’s up to Congress,” he said. “My job is to implement what they execute.”

Unlike fellow Republican Comr. Furchtgott-Roth, who gained some notoriety when he joined Commission because of his disclosure that he didn’t own TV set, Powell said he was practically TV junkie. “I watch a lot of TV,” he said. “That’s probably a problem I have.” Despite his own complaints about proliferation of bad programming, particularly pro wrestling, he said he thought TV producers were “doing an enormously good job.” But he said viewers “have got to be a lot more active in seeking out what you want to see” because of explosion in broadcast and cable channels.