Abernathy: Media Ownership Proceeding Could Take a Year

FCC Comr. Abernathy said a new FCC review of media ownership rules could occur in sections rather than be placed in one order. At least that’s an option, she said: “If you peel off sections and you can do a partial order on reconsideration. These are all very difficult controversial issues. Perhaps it would have been wiser on our part to take brief sections at a time [in the past]. But there is very real logic for doing it all at once,” Abernathy told reporters Thurs.

The FCC is set to seek more comments on media ownership rules remanded by the 3rd U.S. Appeals Court, Philadelphia, at a July 14 meeting (CD June 30 p1). In 2003, the FCC finished 2 years of review to ease ownership restrictions. Changes included letting a company own TV stations and newspapers in the same area. The court faulted FCC decisions on loosened curbs on local-media ownership and local TV ownership.

Abernathy said the newspaper rule warrants attention because some companies, such as The Tribune Co. and Media General, have merged newspapers with broadcast stations, anticipating deregulation. But there will be a delay in mergers until the new rules are in place, Abernathy said.

And new rules could take more than a year to complete, Abernathy said, given the volume and extent of data needed. The further notice of proposed rulemaking is “very open and broad,” she said. “This is more complex and will require a lot of thought,” she said. The FCC will request comment on existing ownership limits, as the Commission traditionally has done in calculating rules’ impact and evaluating ways to look at media ownership restrictions. “And we have to take all of this into context with the direction we have been given by the court,” Abernathy said.

Revisiting cable ownership limits “may be a higher priority than some things,” Abernathy said, though media rules seem to hold center stage. In 2001’s Time Warner v. FCC ruling, the D.C. Circuit Court said the Commission needed a better rationale for limits or it would have to issue new rules. Officials previously said the FCC would review cable and media ownership limits separately (CD June 16 p4).

On other matters, Abernathy suggested that at some point in the digital TV transition manufacturers could offer coupons to buyers of analog sets to help ease consumer confusion over the DTV shift. “I would have no problems with manufacturers saying ‘Yeah, this is an analog set and it won’t work in 2 years…’ and give a coupon where they can come back and get half off on a convertor box.” She said her biggest concern is lack of consumer knowledge.

As some Bells seek to avoid hurdles to selling pay-TV service, such as having to negotiate with thousands of license franchise authorities, Abernathy said she sees several options. These include a federal law that preempts state regulations or an FCC finding that Bells’ TV offerings are an interstate service not subject to local regulation.