Tauzin Writes Letter to FCC Questioning the Nexus Between the National Broadcast Ownership Cap and the Preservation of Localism
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September 19,
2001
The Honorable Michael K. Powell
Chairman
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
Dear Chairman Powell:
Under
Section 202(h) of the Telecommunications Act of 1996, the Federal Communications
Commission (Commission) will undertake its biennial review of the numerous
broadcast ownership rules to "determine whether any of such rules are
necessary in the public interest as the result of competition."Far too often, outdated rules remain in place because they are not
subject to agency review.This simple yet important congressional directive, to
justify the rules imposed on broadcasters, is critical to ensuring that all of
the rules properly reflect the current marketplace they define.
In
a June 29th correspondence to the Commission, several Members of
Congress advocated retention of the Commission's rule that limits the national
audience reach of stations owned by a single entity to 35 percent.This request notwithstanding, we are pleased that the
Commission is committed to fulfilling its Congressional mandate to undertake a
serious review of these regulations -- without presupposing the outcome -- to
respond to changes in the media marketplace.It is always the right time to review the necessity of existing
regulations.
The
rules governing the ownership of U.S. broadcast properties should recognize and
reflect the growth in the number and variety of media outlets in the media
market, as well as the significant efficiencies and public interest benefits
that can be obtained from joint ownership.At the same time, the rules should reflect the continuing goals of
ensuring diversity and localism and guarding against undue concentration of
economic power in the marketplace.These
are not mutually exclusive goals, yet there are those who argue localism is
certain to be harmed if the national broadcast ownership rule is raised.As the Commission undertakes a careful, thoughtful review of the
broadcast ownership rules -- the national ownership cap specifically, we would
stress that marketplace realities do not support the localism argument for
retaining
the
national ownership cap.Quite the
contrary, there appears to be no strong nexus between the location of an owner
of a broadcast station and the commitment of that station to serving the needs
of its local community.
Good business acumen
dictates that broadcasters be responsive to the needs and views of their local
communities.Broadcast stations
strive to serve their viewing area's needs by airing popular, local
programming-- news, weather and
sports-- whether or not the
station owner is located in the local community, in the state, or across the
country.Illustratively, there are
eleven broadcast stations in Massachusetts.None has an owner headquartered in the state, let alone the local
community they serve.Nonetheless,
one is hard-pressed to argue that each and every one of these stations fail to
serve their local communities merely because the owners are located elsewhere.To do so is inappropriate, inaccurate, and fundamentally unfair.Moreover, automatically assuming the converse - that a local owner
always serves the local community - is equally irresponsible.Hence, we urge the Commission to refrain from perpetuating the fallacy
that there is a direct connection between the national broadcast ownership cap
and the preservation of localism, without relying on compelling supportive
facts.In doing so, the Commission
will ensure that the broadcast ownership rules accurately reflect today's
media marketplace, enable more robust competition, and continue to serve the
public interest.
Thank you for your time
and attention to this matter.
Sincerely,
_____________________________
The Honorable W.J. "Billy" Tauzin
_____________________________
The Honorable George Allen
_____________________________
The Honorable Robert Ehrlich, Jr.
_____________________________
The Honorable John Ensign
_____________________________
The Honorable Charlie Norwood
_____________________________
The Honorable John McCain
_____________________________
The Honorable Cliff Stearns
_____________________________
The Honorable Jim Bunning
_____________________________
The Honorable John Breaux.
_____________________________ The Honorable Vito Fossella
cc:The Honorable Kevin J. Martin
The
Honorable Kathleen Q. Abernathy
The
Honorable Michael J. Copps
The
Honorable Gloria Tristani
BT/jw
The
Committee on Energy and Commerce
2125 Rayburn House Office Building
Washington, DC 20515
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