FOR IMMEDIATE RELEASE NEWS MEDIA CONTACTS:

September 12, 2002 Michelle Russo 202-418-2358

Robin Pence 202-418-0505

##### FCC INITIATES THIRD BIENNIAL REVIEW OF BROADCAST OWNERSHIP RULES

Cites Goal of Updating Rules to Reflect Modern Marketplace

Washington, D.C. - Today, the Federal Communications Commission (FCC)
initiated the third Biennial Regulatory Review of Broadcast Ownership
Rules. In the 1996 Telecommunications Act, Congress mandated that the
FCC review its media ownership rules to determine "whether any of such
rules are necessary in the public interest as a result of competition."
Today's action marks the beginning of the most comprehensive look at
media ownership regulation ever undertaken by the FCC. The FCC said the
objective of this proceeding is to develop ownership rules and policies
that are reflective of the current media marketplace, are based on
empirical evidence, and are analytically consistent.

In a Notice of Proposed Rulemaking (NPRM) adopted today, the FCC
affirmed its traditional goals of promoting diversity, localism, and
competition in the local media market. The item explores the following
questions:

(1) Does the marketplace provide a sufficient level of competition to
    protect and advance these policy goals?

(2) If not, do the current ownership rules achieve these goals?

(3) Are revisions to the rules required to protect and advance
    diversity, competition and localism in the media market?

The NPRM addresses all of the media ownership rules related to use of
the broadcast spectrum, many of which were originally adopted decades
ago. Two of these six rules are subject to rulemakings already in
progress so their records will be combined into this proceeding; and two
other rules have been remanded to the FCC by the U.S. Court of Appeals
for the District of Columbia. The six rules and the year they originally
were adopted are:

-   **Newspaper/Broadcast Cross-Ownership Prohibition (1975):** NPRM in
    progress (MM 01-235)

-   **Local Radio Ownership (1941):** NPRM in progress (MM 00-244)

-   **National TV Ownership (1941):** remanded by D.C. Circuit

-   **Local TV Multiple Ownership (1964):** remanded by D.C. Circuit

-   **Radio/TV Cross-Ownership Restriction (1970)**

-   **Dual Television Network Rule (1946)**

Recent court decisions reversing FCC ownership rules emphasized that any
limits must be based on a solid factual record, not on predictive
judgments alone. With respect to the National TV Ownership rule, the
court stated, "Although we agree with the Commission that protecting
diversity is a permissible policy, the Commission did not provide an
adequate basis for believing the rule would in fact further that cause"
(*Fox Television Stations, Inc. v. FCC,* 2002*).*

\- more -

Marking the first effort of its kind, the FCC has commissioned a number
of empirical studies examining the current state of the media
marketplace, including how consumers use the media, how advertisers view
the different media outlets, and how media ownership affects diversity,
localism and competition. The results of these studies will be released
in the coming weeks. Parties filing comments in response to today\'s
NPRM will have a full opportunity to review these studies before filing
comments.

Today's NPRM does not reach any tentative conclusions because the item's
objective is to gather data that will build the foundation for media
ownership regulation. The FCC said that parties who file comments should
provide empirical evidence supporting their assertions.

The FCC said evaluating the rules together will create a comprehensive
and consistent analytical framework that will avoid future criticism by
the courts. Most recently, the D.C. Circuit, in reviewing the FCC's
local television ownership rule, stated, "The deficiency of the
Commission's explanation is underscored by the explanation it failed to
give for defining 'voices' differently in the cross-ownership and local
ownership rules" (*Sinclair Broadcast Group, Inc. v. FCC,* 2002).

Finally, the NPRM invites comment on the standard for the Biennial
Review. Does the 1996 Telecommunications Act require the FCC to repeal a
rule unless it finds it to be "necessary," meaning "indispensable," or
can the FCC retain a rule if it merely serves the public interest? This
question was left unresolved by the U.S. Court of Appeals for the
District of Columbia in *Fox Television Stations, Inc. v. FCC* (2002).

-FCC-

Comments due: 60 days after release of the studies

Reply Comments due: 30 days after the initial comment deadline

MB Docket 02-277

Action by the Commission, September 12, 2002, by Notice of Proposed
Rulemaking (FCC 02-249). Chairman Powell and Commissioner Abernathy,
with Commissioner Copps concurring and issuing a statement and
Commissioner Martin approving in part, concurring in part and issuing a
statement.

Media Bureau contacts: Paul Gallant, Debra Sabourin at 202-418-7200.

News about the Federal Communications Commission can also be found

on the Commission\'s web site [www.fcc.gov]{.underline}.