Paul Gallant, chmn. of FCC’s Media Ownership Working Group, told ...

Paul Gallant, chmn. of FCC’s Media Ownership Working Group, told 30 state and local utility officials that Commission would take public interest into account as it tried to decide new rules for media ownership. He faced skeptical audience attending Consumer Federation of America’s utility conference in Washington Fri. Gallant said courts hade struck down rules on broadcast ownership, so Commission couldn’t simply defend rules as having “a legitimate government purpose.” He said Commission was “no longer free to hypothesize,” but must back up rules with evidence. NBC Washington Vp Robert Okun, another panelist, tried to convince audience that “changes can be positive” but attendees seemed to believe Commission would choose to deregulate broadcast. Several complained that all TV and radio stations were beginning to look and sound alike and gave little attention to local news and public affairs. But Okun said any local TV station that became disconnected from audience would lose that audience: “Localism is profitable.” Okun said maintaining old 35% cap on audience reach didn’t take into account that not nearly that many people watched particular network’s programming at any one time, that many instead watched cable or surfed Internet. “The ability to monopolize anything is much, much reduced at this point,” because of media proliferation,” Okun said. Mark Lloyd, exec. dir. of Civil Rights Forum, disagreed. He began by asking for show of hands if attendees thought there should be more media consolidation. No one did. “I think it will be very difficult to convince the American public that it is okay for 10 or 12 companies to essentially concentrate all the media ownership in local communities,” he said. Lloyd said some companies did provide diverse viewpoints, but they weren’t antagonistic viewpoints, which he said was vital. He compared media ownership to one company’s owning all different brands of soap on store shelves. Lloyd also questioned why, when FCC still had not acted on rulemaking by Commission under former Chmn. William Kennard that asked what public interest obligations of broadcasters would be in digital world, agency had begun rulemaking on broadcasters’ business interests. “That proceeding somehow went away,” Lloyd said. Earlier in week, Comr. Copps had made similar point, saying that rulemaking should be resurrected (CD Oct 3 p3). FCC sources said item still was live issue on 8th floor, but it was unclear what action Commission would take now. However, Lloyd said he believed agency was heavily influenced by partisan politics and, hence, deregulatory agenda. “I think it’s pretty clear to say that we do not have a great deal of confidence that this particular Federal Communications Commission with this chairman and 3 of those from the Republican Party, that we will see… rules establishing public interest obligations to broadcasting and limiting the power of broadcasters to buy more property,” he said.