POWELL CREATES NEW WORKING GROUP ON MEDIA OWNERSHIP POLICY

FCC Chmn. Powell announced new Media Ownership Working Group to seek evidence on how Commission should evaluate media ownership when many companies are merging. Commission has rulemakings pending that would set new ownership limits for broadcast and cable companies. Powell, who has largely embraced deregulatory agenda, said group would provide empirical evidence and analysis with “sharp focus” so Commission could promote diversity, localism and competition in media. He made announcement at media ownership policy roundtable discussion Mon. designed in part to be first installment of new group’s work. “Rebuilding the factual foundation of the Commission’s media ownership regulations is one of my top priorities,” Powell said. He chided previous Commissions for instituting “sweeping” regulations without complete picture of media market, and called previous attempts “superficial” exercises colored by politics: “We need to rigorously examine whether current forms of media regulation are achieving the Commission’s policy objectives.” Members of group are: FCC Cable Bureau Chief Ken Ferree, Ferree special adviser Paul Gallant; Nandan Joshi, attorney- adviser in Office of Gen. Counsel; Jonathan Levy, deputy chief of Office of Plans & Policy; Robert Ratcliffe, deputy chief of Mass Media Bureau; David Sappington, FCC chief economist; Royce Sherlock, deputy Chief of Policy Div. in Cable Bureau.

Group heard from academics and economists on subject. Panel ran gamut of views, from Mark Cooper of Consumer Federation of America, who said media outlets already were too concentrated, to Bruce Owen of Economists Inc., who said there was nothing in Constitution about competition. Cooper worried that some media voices were “loud and booming” while others were “faint.” However, Owen said it was wrong to measure outcomes of media ownership without examining other opportunities speakers have to get their message out. Stanley Besen of Charles River Assoc. said recent elimination of prohibition on duopolies was “clearly a step in the right direction.” Calling FCC’s retention of same ownership rules for 30 years or more “unforgivable,” he called for more flexible approach on local ownership rules, taking into account local market conditions and competition from other media such as Internet. On 2nd panel, Douglas Gomery, prof. of media economics and history at U. of Md., said Commission should measure media industry’s efficiency, its ability to promote free speech and political discussion, its ability to facilitate public order in times of crisis, to offer product choices and new technologies and to foster equity among diverse people.