[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)]
[Rules and Regulations]
[Pages 15688-15689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7441]



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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 73

[MM Docket No. 91-221, FCC 95-97]


Broadcast Services; Television Station Ownership

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Commission eliminates two of its television network rules, 
the ``network station ownership'' rule, and the ``secondary 
affiliation'' rule. This action is taken because a review of the record 
in this proceeding indicates that changes in the television marketplace 
have rendered these rules obsolete. Thus, the action is taken to ensure 
that the Commission's rules are as current and effective as possible.

EFFECTIVE DATE: April 26, 1995.

FOR FURTHER INFORMATION CONTACT:
Dan Bring, Mass Media Bureau, (202) 739-0770, or Roger Holberg, Mass 
Media Bureau, (202) 776-1653.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Report and Order 
in MM Docket No. 91-221, FCC 95-97, adopted March 7, 1995, and released 
March 7, 1995. The complete text of this Report and Order is available 
for inspection and copying during normal business hours in the FCC 
Reference Center (Room 239), 1919 M Street, N.W., Washington, D.C., and 
also may be purchased from the Commission's copy contractor, 
International Transcription Service, at (202) 857-3800, 2100 M Street, 
N.W., Suite 140, Washington, D.C. 20037.

Synopsis of the Report and Order

    1. The Commission eliminates two of its network rules, 47 CFR 
Sec. 73.658(f), the ``network station ownership'' rule, and 
Sec. 73.658(1), the ``secondary affiliation'' rule. The network station 
ownership rule prohibits network ownership of television broadcast 
stations in markets that have so few stations, or stations of such 
unequal desirability that ``competition would be substantially 
restrained'' by permitting network ownership. The secondary affiliation 
rule limits secondary network affiliations in markets where two 
stations have affiliated with two of the three ``traditional'' 
networks, and there is at least one independent station with comparable 
facilities. In these circumstances, Sec. 73.658(1) requires a third 
network seeking an affiliate in the market to offer its programming 
first to the independent station.
    2. The Notice of Inquiry in this proceeding (56 FR 40847, August 
16, 1991) sought comment on the implications of the growth of 
competition in the video marketplace for the Commission's regulatory 
policies. The Notice of Proposed Rule Making in this proceeding (57 FR 
28163, June 24, 1992) sought comments on several long-standing 
structural rules that have governed the television industry, proposed 
alternative means of lessening the regulatory burden on the television 
broadcasting industry, and proposed repeal of the dual network rule 47 
CFR 73.658(g), the network station ownership rule, and the secondary 
affiliation rule. Based on the record in this proceeding, this Report 
and Order eliminated the network station ownership rule and the 
secondary affiliation rule.
    3. The network station ownership rule was intended to increase the 
availability of programming to viewers, prevent domination of smaller 
markets by networks, and encourage the creation and growth of new 
networks by preventing existing networks from [[Page 15689]] ``bottling 
up'' the best facilities. The rule was first applied to television in 
1946 when there were only six television stations in the United States. 
The Commission finds that because of the growth in the number of 
television stations and in network programming made available by cable 
and satellite home dishes, the network station ownership rule is no 
longer necessary to increase the availability of video programming to 
viewers or further the creation of new networks. Therefore, the 
Commission eliminates Sec. 73.658(f) of its rules.
    4. The secondary affiliation rule was adopted by the Commission in 
1971 (36 FR 6507, April 16, 1971) in order to promote development of 
UHF television stations. While commenters were divided as to the 
continued need for the secondary affiliation rule, the Commission is 
persuaded that, due to improvements to UHF reception and the increased 
availability of programming, this rule is no longer needed to ensure 
the availability of competitive programming to unaffiliated stations. 
The Commission thus eliminates Sec. 73.658(1) of its rules.
Administrative Matters

Final Regulatory Flexibility Analysis

    5. Pursuant to the Regulatory Flexibility Act of 1980, 5 U.S.C. 
605, the Commission believes that this action will eliminate rules no 
longer required by the public interest in view of changes in the video 
marketplace since their adoption. Additionally, their elimination will 
make over-the-air television better able to compete in the current, and 
future, video environment. The complete Final Regulatory Flexibility 
Act Statement may be found following paragraph 26 of the full text of 
this Report and Order.

Ordering Clauses

    6. It Is Therefore Ordered that, pursuant to the authority 
contained in Sections 4(i) and 303(r) of the Communications Act of 
1934, as amended, 47 U.S.C. Sections 154(i) and 303(r), Part 73 of the 
Commission's Rules, 47 CFR part 73, is amended as set forth below.

List of Subjects in 47 CFR Part 73

    Television broadcasting.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

Amendatory Revisions

    Part 73 of Title 47 of the U.S. Code of Federal Regulations is 
amended as follows:

PART 73--RADIO BROADCAST SERVICES

    1. The authority citation for Part 73 continues to read as follows:

    Authority: 47 U.S.C. 154, 303, 334.


Sec. 73.658  [Amended]

    2. Section 73.658 is amended by removing and reserving paragraphs 
(f) and (l).

[FR Doc. 95-7441 Filed 3-24-95; 8:45 am]
BILLING CODE 6712-01-M