FCC Asks for Patience on Media Rules

The nation’s top telecommunications regulator cautioned broadcasters Tuesday not to expect quick action on media ownership limits.

Speaking at the National Assn. of Broadcasters’ annual convention, Federal Communications Commission Chairman Michael K. Powell said his main goal was to come up with ownership rules the courts could accept--something the FCC has failed to do six times in the last five years.

In the last 18 months, federal appeals panels have forced the FCC to reexamine limits on the number of TV stations a company can own in small and mid-size markets, as well as the national caps on station groups and cable TV systems.

An appeals court also threw out a rule that effectively prevented cable firms from owning any TV stations in the markets they served.

Powell gave broadcasters few clues to how or when the commission would rule. Instead, he urged both sides in the debate to give the commission time to gather the evidence needed to support new rules.

Several large broadcasting and cable firms argue that ownership limits are antiquated now that consumers can tune in hundreds of channels and a nearly infinite number of information sources online. Three of the four largest networks--CBS, NBC and Fox--have withdrawn from the NAB because they want to lift ownership limits and most of the group’s members don’t.

Those smaller broadcasters and many consumer groups say the restrictions help diversify the viewpoints presented by the country’s most powerful forms of media.

Although diversity isn’t a “magical incantation” that automatically sways the courts, Powell said, “We believe in diversity. We believe in a diversity of voices. The problem is, what are the vehicles for fostering that?”

One vehicle, he said, is to count on market forces to deliver those viewpoints. Many analysts expect the commission, which has three Republicans and one Democrat, to take a less regulatory and more market-oriented approach to all its duties, including ownership rules.

The numerous alternatives to local TV stations “make it rightfully more difficult to justify intrusive limits” on TV ownership, Powell said. But he added that such limits weren’t out of the question.

Powell also urged television broadcasters to offer something more than “pretty pictures” on their new digital channels in order to stay competitive. “If you’re not creative,” Powell warned, “it will be a challenge to compete with other services that are going to be offering more flexibility.”

Broadcasters have complained that cable, satellite and consumer-electronics companies all exert control over the shift, yet none of these groups face FCC mandates. Powell responded last week, proposing a new set of voluntary deadlines for cable and satellite operators to carry high-definition or other enhanced digital TV signals and for set-makers to produce TVs with digital tuners.

The move won plaudits from the NAB, but Powell encouraged broadcasters Tuesday to do more with their digital airwaves than just providing HDTV versions of their usual fare.